Pinstripes Holdings Reports $35.5M Revenue with Significant Net Loss in Latest Quarter

Pinstripes Holdings, Inc. reported a total revenue of $35.5 million for the twelve weeks ended January 5, 2025, marking a 10.4% increase from $32.2 million in the same period last year. The growth was driven by a 10.5% rise in food and beverage revenues, which reached $27.5 million, and a 10.3% increase in recreation revenues, totaling $8.1 million. However, the company experienced a net loss of $8.1 million, a significant decline from a net income of $12.2 million in the prior year, primarily due to increased operating costs and a substantial rise in interest expenses.

Comparatively, for the thirty-six weeks ended January 5, 2025, total revenue increased by 12.2% to $92.6 million, up from $82.5 million in the previous year. This increase was attributed to the full-period contribution from three new store openings and a modest decline in sales at mature venues. The company reported a net loss of $27.4 million for the thirty-six weeks, a stark contrast to a net income of $1.9 million in the same period last year, largely due to higher costs associated with food and beverage, labor, and occupancy.

Operationally, Pinstripes Holdings has expanded its footprint, operating 18 locations across ten states and Washington D.C. as of January 5, 2025. The company employed approximately 1,800 individuals, reflecting its growth strategy. The average unit volume (AUV) for the fiscal year ended April 28, 2024, was reported at $8.6 million, indicating strong performance metrics despite the challenges faced in the current fiscal year.

The company has also undergone significant strategic developments, including a reverse recapitalization completed on December 29, 2023, which resulted in the merger of Pinstripes, Inc. with Banyan Acquisition Corporation. This transaction has positioned Pinstripes as a publicly traded entity, necessitating adjustments in its operational and financial reporting structures. The company is currently navigating challenges related to its debt covenants, having breached its Total Net Leverage Ratio requirement as of January 6, 2025, and is exploring various strategic alternatives to enhance liquidity and operational stability.

Looking ahead, Pinstripes Holdings faces substantial doubt regarding its ability to continue as a going concern, as indicated by its current financial projections and liquidity challenges. The management is actively seeking to address these issues through cost reduction initiatives and potential capital raises, although the success of these efforts remains uncertain. The company’s ability to generate positive cash flows and meet its obligations will be critical in the upcoming fiscal periods.