Pinstripes Holdings, Inc., (NYSE: PINS) founded in 2007, is a unique dining and entertainment brand that combines Italian-American cuisine with bowling, bocce, and private event spaces. Offering multi-generational activities, Pinstripes provides a fun and engaging atmosphere for family gatherings, corporate events, and special occasions. With a made-from-scratch menu and a variety of experiences, the company caters to a broad audience, creating memorable connections through food, games, and personalized events.
As of 2024, Pinstripes operates 17 locations across ten states and Washington, D.C., employing around 1,800 team members. Its venues range from intimate dinners to large-scale events, including weddings and corporate meetings.
Cost Efficiency and Pinstripes Development Strategy
Over the past six months, Pinstripes Holdings, Inc. has focused on optimizing its operations to ensure both growth and efficiency. The company conducted a thorough review of its venue-level cost structure, identifying $10 million in annual savings without compromising the guest experience. These savings come from labor optimizations, a better credit card processing agreement, and stronger negotiations with vendors. By leveraging its expanding brand and scale, Pinstripes has implemented most of these cost-saving measures by the end of Q1 and expects to see full benefits in the future.
At the corporate level, an additional $4 million in savings was identified, largely through strategic partnerships, staff reductions, and enhanced marketing efficiency. With these initiatives in place, the company expects to achieve sustainable adjusted EBITDA profitability by the third quarter of 2024.
Pinstripes’ growth strategy includes two types of developments: established locations with pre-existing foot traffic and newer developments where traffic patterns are still forming. Of the four venues opened in 2024, Topanga and Aventura fall into the new development category, while Orlando and Garden State Plaza are in established areas. Though new developments take longer to mature, both types offer promising long-term growth potential.
Venue Performance and Pinstripes Development Pipeline
Pinstripes Holdings, Inc. has seen significant improvements in venue-level EBITDA, with nearly a $2 million increase in performance across new locations compared to the previous quarter. All venues in this group, including the new developments in Aventura and Topanga, showed steady progress. These two locations are expected to reach approximately $7 million in annual unit volume (AUV) by year’s end, aligning with mature locations like the Bethesda, Maryland venue.
Established venues in Garden State Plaza and Orlando are also showing positive trends, with projections of reaching $10 million in sales for fiscal 2025. Both of these units achieved venue-level EBITDA profitability for at least one period in the first quarter, and this upward trend is expected to continue.
Looking ahead, Pinstripes plans to open two new venues in Walnut Creek, California, and Coral Gables, Florida, in late Q2 or Q3 of 2025. These locations will join a robust development pipeline, which includes five other venues under construction, bringing the total number of open or leased locations to 22. With 30 potential sites in various stages of planning, Pinstripes remains well-positioned to expand and maintain its high-quality, experience-driven brand despite broader economic challenges.
Pinstripes Fiscal Q1 Financial Performance
In the first quarter of fiscal 2025, Pinstripes Holdings, Inc. reported a 19% increase in total revenue, reaching $30.6 million, compared to $25.7 million in the same period last year. This growth was fueled by the opening of four new locations, contributing to a 16% rise in food and beverage revenues and a 30% increase in recreation revenues, despite a 2.4% dip in same-store sales.
Cost of food and beverage as a percentage of total revenue increased by 100 basis points to 17.1%, primarily due to inefficiencies tied to the new openings and modest food inflation in seafood and poultry. Labor and benefits rose by 200 basis points to 37.1%, driven by additional staffing at the new locations. Occupancy costs stood at 21.4% of total revenue, while other operating expenses increased slightly to 17.8%.
Venue-level EBITDA decreased to 7.2%, largely due to the new stores still maturing, though profitability is improving. Mature stores maintained an average contribution margin of 12.6%, despite a slight year-over-year decline. The company ended the quarter with $5 million in cash and secured $5 million in additional financing, with a potential $10 million funding increase from Oaktree.
Takeaway
Looking ahead, Pinstripes is positioned for continued growth as it expands its footprint and refines its operations. The company’s focus on optimizing costs and improving profitability across both new and mature venues lays a strong foundation for future success.
With additional locations in the pipeline and a commitment to enhancing the guest experience, Pinstripes is well-equipped to capture opportunities in the experiential dining and entertainment sector. As the business navigates broader market challenges, its strategic initiatives and financial discipline are expected to drive sustainable long-term growth and shareholder value.
