Pinstripes (PNST) 26 Nov 242025 Q2 Earnings call transcript

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Pinstripes Holdings, Inc.

Second Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded today, November 26, 2024.

During management's presentation and in response to your questions, they will be making forward-looking statements about the company's business outlook and expectations, including in respect of guidance for fiscal 2025. risks all management's that of today's measures (sic) call. beliefs therefore, filings. Management subject discuss and facts not today, also [ statements described will XXXX are reflect as part and on as conference and and to for annual forward-looking ] other company's financial Form are statements of historical and in report These the uncertainties XX-K quarterly fiscal and non-GAAP predictions SEC as subsequent prepared accordance the illustrate be with not performance accepted are principles but to generally may measures intended accounting alternative non-GAAP These in useful. that company's the are of measures operating Reconciliations found conference Schwartz. quarter release Relations and of to direct be in most the its the an earnings earnings turn like XXXX the earnings presentation has Founder financial CEO, at Investor these Pinstripes second the measures on www.pinstripes.com release. The under to its section. And can comparable Dale GAAP website I'd and measures company to now, non-GAAP posted you. Thank

You may begin.

Good thank you our joining afternoon, everyone, and call today. for

Over corporate high-quality months, current at line main top capacity. been one, have trajectory; initiatives: three, few and level we focused our our X comp venue and driving the on improved improving both growth two, locations profitability within level; opening sales last funding the

me Let our speak top with areas, starting of these line to improving each comp growth.

which down we As aware, approximately business, wallets approximately this down seeing are and business pronounced year-over-year most was most our are our in pressured, X%. event only you play was of remain QX, XX% in open consumer while

promotion, you hours, and off for guests weekend specials happy level and lane are the through can of our offerings. daily as enjoy focused for as XX% For on where our a gaming our ensuring right we as certain open programs hour brunch such during well have play value business, bowl we

and many our yoga as activities clubs, other kids have nights, store line classes, and our activities comedy F&B dancing, nights, campaigns success have exciting gaming that we complement addition, seen such trivia In marketing local introduced as community offerings.

we quarter, while to as our we quick quarter. by we brand comp performance are As to believe we our not in the guests, balance, to right the discontinue programs to the substantial did that found continue We believe test right being second expectations. fiscal demonstrated improvement in enter third for those that weeks, perform the recent and compared our

event our third the the quarter seasonally the On many drive working are to season. as through for events side business, our and strongest, hard is Pinstripes possible of teams as holiday

salaried fact side is generation that seeing savings our on profitability, in and business the and $XX successfully continued we lead investment showing our bookings annualized of to tourism sales weeks, million promising agreement, our quarter. in growing in very event to results. With performance business and We respect growth are and most are range we by and partners, has labor removed our is more our strong the intense the despite card segment short-term booking expenses, savings, of brand. spoke sales, cost negotiations and base, current the headwinds. our operating vendor This with mature strategic various from margin credit last in store comp favorable more savings with scale leverage These labor, a leveraging the event encouraged team of convention the our evident processing and recent cost hourly in

run these going savings implemented, quarter rate a forward. we second The saw of full benefit and expect substantially all

partners, to a these reductions, to headcount on efficiency. savings savings of the yet approximately corporate are target with in fully majority of our our strategic focus annualized $X in from we financials. These addition, negotiations on through savings and flow SG&A, In cost renewed with million range removing additional agency marketing

on corporate new our same-store ensuring of and level well performance towards are track level as appropriate on growth, venue the line openings, efforts sales we long-term to top we work through ongoing profitability. are drive sufficient the completion at corporate-level unit structure as while cost believe cost reduction the costs, Following we maintaining

opened bocce XX, Creek second unit location our Mateo. location X,XXX. space to location XXth XX,XXX Plaza, San new private On X Broadway marking we San proximity new up venue to groups lanes, in This our California, square area, in to at Turning across X Creek, event with X-story bowling our X in for Walnut Walnut feet features Francisco of close levels, development. and indoor November courts, the in

our the very Our opening our Mateo and been bookings very success location. initial of San to date event continued complementing promising, has been strong, private have

on Finally, to liquidity. our touch want I

had cash and October of cash we As XX, equivalents. $X.X million in

we increase funds substantially, flow sources, volumes could capital, as raise and quarter, evaluating significant sales funding cash additional the positive in we from additional from fiscal external holiday which outside to anticipate as While as also include existing seeking new well lenders. are third our

The to available our We we have are for are seeing challenging for to with our scale second potential about as and fiscal pipeline our improved in despite growth summary, optimistic nationwide. In weeks recent by us will the quarter, continue we Pinstripes holiday of is third balance business we period are encouraged the quarter. EBITDA, a results event substantially. we as trends significant capital what in source the unit

to our spaces value. strong position high-quality, that put drive believe shareholder entertainment, connection-oriented event to dining, us in and long-term a continue We

of Tony, our this guests they've to over continue expect in our moments would Of fiscal quarter now results of they more as be magical team Pinstripes. With discuss possible greater X,XXX detail. course, with from without to provide the members me second that, the CFO, come to call passion none our to than those our let and turn dedication

and you, good afternoon, Thank Dale, everyone.

$XX.X by including full volume increased at in million period, total total XXXX and to $XX.X million, compared revenues in same last revenue in increase was modest to the beverage new offset in For compared second open to stores legacy for X.X% revenues. quarter primarily fiscal and fiscal of food X.X% due in XX The to quarter having second X.X% of quarter, recreation the revenue decreases year, increase the second our the quarter X XXXX, partially increase locations. in an fiscal

of Cost to a Turning XX.X%, offsetting higher of to due costs. as a addition X efficiencies basis cost as points basis revenue total benefit contributing percentage of of changes stores store to Labor increased XX XX.X%, product in primarily and revenue to increased food beverage primarily labor benefits due total to percentage to expenses. mix. and points XXX the and new

new to decreases profitability janitorial from a negative X of as Other store our were and some modest Venue-level XXXX, Please as measures. operating to new of basis in activities, an by and maintenance store benefit total group that to costs. XX.X%. fiscal of percentage as down revenue costs to percentage credit total approximately Excluding decreased a EBITDA repairs driven continue insurance to in of release contribution refer our X%, these a opened and improve. due costs with total as costs labor basis fees XX.X%, revenue progress card XXX the decreased XXX revenue to locations points addition for and reconciliation earnings percentage stores of through this curve non-GAAP expenses maturation of offset continuing the the of points. Occupancy points XX by technology, were primarily stores, in basis increase a

we've months, in General basis by year, point cost to administrative those discussed. that driven $X.X open margins period same increase Our to XX expenses year. contribution XX primarily average a more last $X.X mature year improvements efficiency previously of increased million, than representing million over stores, compared and generated X.X%, the

Turning to liquidity.

$XXX equivalents, million and $X.X XX, we million and As in of had of outstanding. cash cash XXXX, October debt

liquidity For including, we fiscal in existing annual cash to to, options, we additional on flow guidance, raising but positive evaluate quarter-to-date funding not an limited the want update additional provide and third additional capital from continue our lieu our quarter, results. to receiving With that, of anticipate lenders. and

We to last be quarter. XXXX, Third up XX, decreased the quarter-to-date anticipate above during line Creek, Operator, opened additional prior the X.X%, happy questions. EBITDA And for you overall interest year. We'd that like you Dale in for meaningfully opening open again higher questions weeks year, do the be Walnut answer to positive November with to have. in we through one in expect adjusted California, now than venue-level are November I venue QX and any on any sales XX, prior EBITDA X thank not venues and and new XX.X%. please same-store to and may Pinstripes. your

is Brian from here from Oppenheimer. Bittner question First Instructions] [Operator

Just but improved, a understand on quarter. the question still quarter-to-date the meaningfully after have I down sales. of same-store in last second the weeks pretty down X% is couple

dig believe maybe the you control? what Maybe How are? that. little you pressures macro outline versus much deeper just is can into a you what can So

our control events it I'm proxy I'd the is side. wanted the say Yes. Tony. unpack open using our I events business and destiny the business. bit Brian, as half Yes, a We to relative I'd say on then more it's And little play macro. of to the there QX comp, if

specifically we we've And we marketing the look, it half corrected. so, gaming say activity, changed rest, some of is couple side in things the pressure then since results we we're I'd aggressive the seeing why course up is, did on which And you out the which last prepared in a business. see from of called some weeks, particularly that can perspective, the X%. making macro of promotional And And our remarks. the

give we're the are talking And the question any is just How guidance? for And margins I you you restaurant-level follow-up can about margins, on Okay. there quarter. the considering us thinking second on half? just restaurant-level previous margins. a outlook know is on about third EBITDA disclosure in

of increased QX, some still if So leverage, look margins. negative spite obviously, you just sales in we at pretty

but number and see thinking of much be look, the last the it's meaningfully just pretty just can expect what at to think, are on last meaningfully better, half. to not we're But rate. which I obvious, are, that venue-level sales you're a don't out that Look, sales to quarter couple the seeing flow going just we going That we're given high the call on specific if very they weeks. you we're in So better, look a margins. through say, second negative volatility, leverage based still, in

So that's what we're saying.

from Next is William Matt Curtis here from question [Operator Blair. Instructions]

how more something it understand can you quarter. you looking the cash take looking beyond you liquidity raise you sense But positive current before of really you're in for do? to So I becomes can your far to third a operating before capital, have us need give a flow that,

Tony. as it's we build liquidity service. plus calendar season, get debt current we and we Yes, the through that be 'XX in we'll out through cost most Matt, holiday see situation completed, the the work liquidity able of cash situation, to our our we've believe given with so that current should here

outlook, looking do season well enough liquidity about that. the shy -- being we're have we're we and raising We the look holiday seeing at what But we're year. not with capital, get so next to to on into additional have,

it timing idea into And that? pushed like on at being you Could Coral on then sounds this a around Gables, give the that's point. out better fiscal us 'XX

fiscal We it's just didn't in pushed into say 'XX, QX. out not

So likely 'XX Coral will Gables in open. QX of fiscal

what then you if And maybe and talk I you could Understood. you've correction describe Okay. on about misfired measures on implemented? marketing marketing, course guess could maybe what

Dale. It's Sure.

quickly One just a to early effects we the Google of period we of pulling the main Facebook AdWords, course diminution but spend, We some paid did And very spend. of are. not elements, see have spend, get testing it, and we see digital it substantial ] in, a I'll beta by and that And did flowthrough adjusted. back the what a QX quite sales the in bit call a other. decreased reevaluation we and to [

what you to. refer mostly that's Tony so were hearing And

BTIG. question live. Next is is line your from Peter sorry, I'm Yes, from Saleh Peter,

muted You accident. might be by

Can you guys me right? hear all

Hey, Pete.

Yes.

that. about Sorry

that also, Just recent your events? don't is that this in have then about weeks. most in trajectory for any on comp open trying question color just why -- play the it's to business you from talk understand know to volatility the around if this missed a typical improvement. mostly most that? Or that it? much just you've I So I recent just Could seen same-store is sales? And Is volatile so

Yes.

comp, quarter-to-date in volatility of events the there little on driven bit business. by color the is a little primarily a look, So And that.

be, can some drives it So should say, of that. more I which lumpy,

is this in In terms that say, macro haven't time. we our seen of business this environment look, is normally volatile, I'd some a

years. And big of some a what bit over us last so comps of lapping couple otherwise that's probably is the pretty amplifying

comp And and bit little of maybe you forward the in much color quarterly comps pricing the in just on can or expect you guys going a check in of how versus the provide breakdown traffic? maybe go-forward terms

offset increase price effective call, was menu in promotional So by business X%, completely we that QX, what had on pricing I'll the gaming. an and

period, So And is that mid-July mid-August saw to to how to then about quarter, the then X%. we in mid-September, down back the in the the change essentially of then broke middle mid-August end significant And X.X% mid-September to in in down we a about comp and of traffic. were the quarter down October. X%

of down us was middle the X weeks expected. would than have further really So I really, that kind it drove that

like back Dale closing concludes the to I'd Schwartz turn This comments. question-and-answer the session. for any floor to

all just the everyone want Thank for and and us magic Pinstripes. hope everyone thank again XX I of joining any the afternoon interest with a Holidays, at across our to this happy wish in and to We experience see you Thanksgiving your locations you. and country us.

This concludes today. conference the

lines time. you your Thank your this at You for again may participation. disconnect