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Pinstripes Holdings, Inc. (BYN)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 FY2025 revenue was $30.6M (+18.9% YoY) with same-store sales down (2.4)%, operating loss $(7.6)M and net loss $(10.0)M; Venue-Level EBITDA was $2.2M (7.2% margin) and mature-venue margin 12.6% .
  • Pinstripes cut FY2025 guidance materially: Adjusted EBITDA to $8–12M (from $19–21M), mature venue margin to 17–20% (from 20–22%), and new openings to 2 venues (from 4); G&A lowered to ~$15M (from ~$17M) .
  • Drivers of the miss: mix shift toward higher-cost “open play” vs private events, food cost inflation (seafood/poultry), higher store labor and occupancy costs (including a prior-year lease amendment benefit), and elevated public-company expenses .
  • Liquidity/covenants are a watch item: the company disclosed substantial doubt about going concern prior to subsequent financing and does not expect covenant compliance at the first measurement date; secured $5M additional financing and Oaktree upsized potential future funding by $10M post-quarter .

What Went Well and What Went Wrong

What Went Well

  • Mature venues continued to show stronger profitability with mature Venue-Level EBITDA margin at 12.6% in Q1 (vs 15.0% prior-year Q1) and management reiterated focus on margin improvement initiatives .
  • Management executed cost actions, removing ~$10M in annualized venue-level costs and identifying ~$4M in annualized SG&A savings to bolster profitability as the macro improves .
  • Development pipeline intact: 5 venues in development, 2 expected to open in FY2025, and ~30 potential sites; CEO emphasized confidence in long-term brand positioning and demand for connection-oriented dining/entertainment .

What Went Wrong

  • Same-store sales declined (2.4)% YoY, reflecting macro softness and pressure at the 13 legacy locations even as new stores lifted total revenue .
  • Store cost pressures: labor and benefits rose to 38.1% of sales, occupancy to 21.4%, and other store operating costs to 17.8%, driven by new stores and higher repairs, entertainment, lead generation, janitorial, insurance .
  • Adjusted EBITDA deteriorated to $(3.5)M, and Venue-Level EBITDA margin declined 786 bps YoY as mix shifted toward open play and prior-year occupancy was depressed by a one-time lease amendment .

Financial Results

MetricQ3 FY2024Q4 FY2024Q1 FY2025
Revenue ($USD Millions)$32.162 $36.198 $30.595
Diluted EPS ($USD)$0.33 N/A$(0.23)
Operating Margin (%)(9.5)% (29.4)% (24.9)%
Venue-Level EBITDA Margin (%)19.4% 3.7% 7.2%
Same-Store Sales Growth (%)6.9% 0.4% (2.4)%

Segment revenue breakdown:

Segment Revenue ($USD Millions)Q3 FY2024Q4 FY2024Q1 FY2025
Food & Beverage$24.854 $27.591 $23.819
Recreation$7.308 $8.607 $6.776

Operating metrics and cost mix:

Store Cost Mix / KPIsQ3 FY2024Q4 FY2024Q1 FY2025
Food & Beverage Costs (% of revenue)15.6% 18.1% 18.1%
Store Labor & Benefits (% of revenue)33.7% 40.3% 38.1%
Store Occupancy (ex-D&A) (% of revenue)15.4% 19.1% 21.4%
Other Store Operating (ex-D&A) (% of revenue)16.0% 18.8% 17.8%
G&A ($USD Millions)$5.274 $7.413 $5.504
G&A (% of revenue)16.4% 20.5% 18.0%
Mature Venue EBITDA Margin (%)N/A11.4% 12.6%
Venue Count16 17 17

Estimates vs Actuals (Q1 FY2025):

MetricConsensusActual
Revenue ($USD Millions)N/A (S&P Global consensus unavailable for BYN due to CIQ mapping issue)$30.595
Primary EPS ($USD)N/A (S&P Global consensus unavailable)$(0.23)
Values retrieved from S&P Global were unavailable due to missing mapping for BYN.

Guidance Changes

MetricPeriodPrevious Guidance (6/27/2024)Current Guidance (9/4/2024)Change
Same Store Sales GrowthFY2025Low single digits Negative low single digit to Positive low single digit Lowered
New Venue OpeningsFY20254 venues 2 venues Lowered
Mature Store Venue-Level MarginFY202520–22% 17–20% Lowered
G&A incl. non-cash stock comp & tax ($)FY2025~$17.0M ~$15.0M Lowered
Pre-Opening Expenses ($)FY2025$3.0M $3.0M Maintained
Adjusted EBITDA ($)FY2025$19–21M $8–12M Lowered

Earnings Call Themes & Trends

Note: The Q1 FY2025 earnings call transcript was not available in our document catalog. We used the press release and 10-Q narrative to track themes.

TopicPrevious Mentions (Q3 FY2024)Previous Mentions (Q4 FY2024)Current Period (Q1 FY2025)Trend
Macro/consumer softnessGrowth with positive comps; newly public status Positive comps; noted challenging environment “Challenging macro environment” and softness impacting results Deteriorating
Cost structure actionsPublic company cost ramp Identified ~$10M annual savings opportunity; potential +500 bps mature margin Executed ~$10M venue-level cost removal; identified ~$4M SG&A savings Improving execution
Mix shift (open play vs events)Stable cost ratios Mix/comps relatively balanced Mix toward higher-cost open play pressured F&B margins Negative
Labor & operating costsStore labor ~33.7% Store labor ~40.3%; occupancy rising Store labor 38.1%; occupancy 21.4%; other costs up Elevated
Occupancy/lease effectsNormalized Higher occupancy vs prior year Prior-year lease amendment created lower base; current occupancy higher Headwind vs PY
Development pipelineAventura/Paramus opens; pipeline expanding 17 venues; multiple new markets named 17 venues; five in development; two to open in FY2025; ~30 prospects Steady
Liquidity/covenantsN/AHeavy financing; warrants; debt build Going concern flagged; covenant risk; subsequent $5M financing; Oaktree upsized future funding Risky/liquidity actions
Public company readinessRising G&A for readiness G&A elevated for public co costs G&A still elevated, lowering full-year outlook to ~$15M Moderating guidance

Management Commentary

  • “Our first quarter results did not meet our expectations as we faced a challenging macro environment. Nevertheless, our team remains focused on executing on our top-line and profitability initiatives...” — Dale Schwartz, Founder & CEO .
  • “We have made significant progress on rationalizing our cost structure by removing an annualized $10 million in venue-level costs... identified an additional $4 million in annualized savings in our SG&A...” — Dale Schwartz .
  • “Our fiscal 2024 openings continue to see the anticipated improvements... with all four venues seeing improvement in venue-level EBITDA relative to the fourth quarter... five additional venues currently under development with two expected to open in fiscal 2025, and another 30 potential sites in various stages of development.” — Dale Schwartz .

Q&A Highlights

  • Transcript unavailable in our document catalog; the company held a call/webcast at 5:00 p.m. ET with replay and webcast links provided .

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 FY2025 revenue and EPS was unavailable due to a missing SPGI/Capital IQ mapping for BYN in our tool. We attempted to retrieve “Primary EPS Consensus Mean” and “Revenue Consensus Mean” but the mapping was not found. Given this, comps to consensus cannot be made for this quarter.

Key Takeaways for Investors

  • Guidance reset is the principal stock narrative: FY2025 Adjusted EBITDA cut to $8–12M, mature margin to 17–20%, and openings to 2; this is a negative inflection vs June guidance and likely the main reaction driver .
  • Margin pressure stems from mix shift (open play), cost inflation, and higher occupancy/labor; watch for mix normalization and cost saves flowing through H2 as new stores mature .
  • Cost actions are meaningful and underway (~$10M venue-level + ~$4M SG&A); track quarterly cadence of margin recapture and mature-store performance vs targets .
  • Liquidity and covenant risk require monitoring; subsequent $5M financing and potential Oaktree upsizing help near-term runway, but going concern and covenant commentary introduces risk until capital plan is fully executed .
  • Development remains strategic but slower (2 opens vs 4 guided prior); in the current macro, prioritize unit-level returns and balance sheet flexibility over footprint growth .
  • Public-company cost ramp visible in FY2024–Q1 FY2025; FY2025 G&A guidance lowered to ~$15M, which should support EBITDA if topline stabilizes .
  • Near-term trading: guidance cuts and covenant/going concern language skew risk to the downside; medium-term thesis depends on cost actions, mature venue margin trajectory, and access to incremental funding improving cash runway .