Executive Summary

Q2 2024 (twelve weeks ended October 15, 2023) delivered revenue growth and modest comp growth: total revenue $24.6M (+2.7% YoY), same-store sales +1.9%, but operating loss widened on higher pre‑opening and store expenses; net loss was $(7.3)M and basic EPS $(1.17) .
Sequentially to Q3 2024, revenue accelerated to $32.2M (+14.1% YoY) with Venue‑Level EBITDA of $6.2M (19.4% margin), though Adjusted EBITDA fell to $0.4M on public company and pre‑opening costs; net income of $12.2M was driven by non‑cash warrant liability fair value gains .
Management emphasized growth runway (potential ≥150 locations) and near-term expansion (three new venues upcoming at that time) and later announced ~$10M annual cost savings (venue-level) with a subsequent ~$4M SG&A savings plan to support margin recovery in FY25 .
There was no dedicated 8‑K 2.02 press release for Q2; financials were furnished via an 8‑K containing unaudited Q2 statements. S&P Global consensus estimates were unavailable for BYN/PNST due to post‑SPAC mapping; thus estimate comparisons are not provided.

What Went Well and What Went Wrong

What Went Well

Same-store positive comps in Q2 2024 (+1.9%), supported by event sales and pricing actions YoY .
Sequential momentum in Q3 2024: total revenue +14.1% YoY to $32.2M, both Food & Beverage (+14.2%) and Recreation (+13.8%) contributed; Venue‑Level EBITDA margin held near 19% .
Management underscored brand runway and venue pipeline: “tremendous whitespace…potential for at least 150 total locations,” with near-term openings in Orlando, Walnut Creek, and Coral Gables .

What Went Wrong

Q2 2024 operating loss widened to $(7.2)M on higher pre‑opening ($3.0M) and store‑level costs; Adjusted EBITDA for the comparable Q2 later reported at $1.6M Venue‑Level EBITDA and 6.6% margin (historical) .
Store labor/benefits and occupancy intensity remained elevated in Q2: 37.9% and $4.6M respectively, pressuring profitability .
In Q3 2024, Adjusted EBITDA fell to $0.4M and net income was flattered by non‑cash warrant liability gains—masking lower core operating profitability; management later cited a “challenging consumer environment” into FY25 and cut guidance .

Financial Results

Revenue, EPS, Margins – YoY and Sequential

Metric	Q2 2023 (Oct 9, 2022)	Q2 2024 (Oct 15, 2023)	Q3 2024 (Jan 7, 2024)
Total Revenue ($M)	$23.944	$24.623	$32.162
Food & Beverage Revenue ($M)	$18.998	$19.435	$24.854
Recreation Revenue ($M)	$4.946	$5.188	$7.308
Basic EPS ($)	$(0.55)	$(1.17)	$0.35
Store Labor & Benefits (% of Sales)	37.8%	37.9%	33.7%
Occupancy (ex‑D&A) ($M)	$4.217	$4.583	$4.947
Other Store OpEx (ex‑D&A) ($M)	$3.864	$5.134	$5.140
G&A ($M)	$3.312	$3.774	$5.274
Depreciation ($M)	$1.861	$1.697	$2.076
Pre‑Opening ($M)	$0.459	$3.026	$1.934
Operating Income (Loss) ($M)	$(3.019)	$(7.206)	$(3.057)

Segment Breakdown – Q2 2024

Segment	Q2 2024 ($M)
Food & Beverage	$19.435
Recreation	$5.188
Total	$24.623

KPIs and Non‑GAAP

KPI	Q2 2023	Q2 2024	Q3 2024
Same-Store Sales Growth (%)	36.6%	1.9%	6.9%
Venue‑Level EBITDA ($M)	$1.628 (prior year comp disclosed later)	$1.628	$6.227
Venue‑Level EBITDA Margin (%)	6.6%	6.6%	19.4%
Adjusted EBITDA ($M)	$(4.163) (prior year comp disclosed later)	$(4.163)	$0.426

Notes: Venue‑Level EBITDA/Adjusted EBITDA for Q2 2024 are presented as prior-year comps within later filings; Adjusted EBITDA definitions and reconciliations provided by the company .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Same Store Sales Growth	Q4 FY2024	Low single digits	N/A	—
Venue‑Level EBITDA Margin	Q4 FY2024	13–16%	N/A	—
G&A incl. non‑cash stock comp & tax	Q4 FY2024	$4.0–$4.5M	N/A	—
Pre‑Opening Expenses	Q4 FY2024	$1.0–$1.5M	N/A	—
Adjusted EBITDA	Q4 FY2024	$(0.75)–$0.3M	N/A	—
Same Store Sales Growth	FY2025	Low single digits (initial)	Negative low single digit to positive low single digit (updated)	Lowered
New Venue Openings	FY2025	4	2	Lowered
Mature Store Venue‑Level Margin	FY2025	20–22%	17–20%	Lowered
G&A incl. non‑cash stock comp & tax	FY2025	~$17.0M	~$15.0M	Lowered (SG&A savings)
Pre‑Opening Expenses	FY2025	$3.0M	$3.0M	Maintained
Adjusted EBITDA	FY2025	$19.0–$21.0M	$8.0–$12.0M	Lowered

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 FY2024)	Current Period (Q3 FY2024)	Trend
Growth pipeline & whitespace	One new store opened in Q2; pre‑opening spend for five openings in FY2024; comps +1.9%	16 total venues; strong opening in Aventura; pipeline to ≥150 potential locations	Expansion narrative strengthening
Private events vs open play mix	Event sales cited supporting margins; pricing actions	Event sales contributed to lower food & beverage COGS %; mix supportive of margin	Favorable mix for margins
Public company costs & readiness	Rising G&A into Q2 (public company prep)	Q3 G&A up to $5.3M on public company readiness and digital marketing	Near-term margin headwind
Cost savings program	Not present	Announced ~$10M annual venue-level savings for FY2025	Structural margin initiatives
SG&A optimization	Not present	Subsequent update: additional ~$4M SG&A savings identified	Further opex control
Financing & warrants	Net income volatility from warrant liability fair value	Q3 net income driven by $17.8M warrant FV gain	Non‑cash volatility continues

Management Commentary

“We grew our revenue approximately 14% year-over-year … and delivered robust Venue‑Level EBITDA margin of over 19% … another successful Aventura Pinstripes opening … potential for at least 150 total locations … openings over the next few months in Orlando, FL; Walnut Creek, CA; and Coral Gables, FL” — Dale Schwartz, Founder & CEO (Q3 FY2024 press release) .
“We have identified several cost savings opportunities, representing approximately $10 million in annual savings … potential to further improve our mature store contribution margins by ~500 bps in fiscal 2025 and beyond” (FY2024 press release) .

Q&A Highlights

A full Q2 FY2024 earnings call transcript was not filed; the company hosted a Q3 FY2024 call with details disclosed via press release, but transcript is not available in the document set. We searched for “Pinstripes earnings call transcript Q2 2024” across earnings-call-transcript and other-transcript document types and found no Pinstripes content [Search run returned none].

Estimates Context

We attempted to retrieve S&P Global consensus (Primary EPS and Revenue) for BYN/PNST. The SPGI/CIQ mapping was unavailable (post‑SPAC ticker transition), so Street consensus could not be fetched. As a result, estimate comparisons are not provided [GetEstimates error].

Key Takeaways for Investors

Q2 2024 showed steady comps and revenue growth, but profitability was constrained by elevated pre‑opening and store expenses; look for margin improvement as openings mature and cost programs scale .
Sequential momentum into Q3 2024 illustrates demand in both Food & Beverage and Recreation; Venue‑Level EBITDA margins near 19% signal solid unit economics when the system is past pre‑opening peaks .
FY2025 guidance was cut (SSS, mature margins, Adjusted EBITDA, openings), reflecting macro softness and ramp timing; monitor delivery of ~$10M venue-level and ~$4M SG&A savings to bridge the margin gap .
Net income volatility from warrant fair value changes is non‑cash; focus on Venue‑Level EBITDA and Adjusted EBITDA for operational trend analysis .
Development pipeline remains robust (≥150 potential locations), but near‑term profitability hinges on disciplined opex and maturation; sequential venue‑level margin progression is a core proof point .
No Q2-specific 8‑K 2.02 press release or transcript was filed; quarterly Q2 financials were furnished via 8‑K with unaudited statements, and subsequent Q3/Q4 press releases provide the best qualitative context for trend tracking .

Search and document notes:

8‑K with unaudited Q2 2024 financial statements (Pinstripes, twelve weeks ended October 15, 2023): revenue, segment, costs, EPS , KPI comps .
Q3 FY2024 earnings press release with detailed highlights, KPI metrics, and forward Q4 guidance .
FY2024 (Q4) press release with FY2025 guidance and cost saving plan .
Q1 FY2025 press release with updated FY2025 guidance (lowered) and SG&A savings .

Pinstripes Holdings, Inc. (BYN)·Q2 2024 Earnings Summary