Pinstripes (PNST) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 6.7% to $118.7M, with food and beverage up 5.6% and recreation up 10.6% year-over-year.

• Opened two new venues in New Jersey and Florida, bringing total to 17 locations as of April 28, 2024, with three more in development.

• Food and beverage account for 75% of revenue, with private events representing nearly 50% of total revenue and about 1,000 events per location annually.

• Mature venues (open >24 months) showed significant margin improvement, with venue-level EBITDA margin up 310 bps in Q4 and 118 bps for the year.

• Transitioned to a new digital marketing agency to accelerate events business growth and enhance campaign effectiveness.

Financial highlights

• Q4 2024 revenue increased 5.9% to $36.2M; food and beverage up 4.9%, recreation up 9.5% compared to Q4 2023.

• Q4 same store sales rose 0.4%; full-year same store sales up 3.0%.

• Q4 operating loss was $10.7M (including $1.7M pre-opening expenses); net loss $8.7M, nearly flat year-over-year.

• Mature store contribution margin improved by 310 basis points to 11.4% in Q4 and by 120 basis points to 14.4% for the full year.

• General and administrative expenses rose to $7.4M, including $1.6M in public company readiness and M&A costs.

Outlook and guidance

• Fiscal 2025 guidance: low single-digit same-store sales growth, four new venues, mature store EBITDA margin of 20–22%.

• Targeting $10M in annual cost savings, expected to improve mature store contribution margins by ~500 bps.

• General and administrative expenses expected at $17M, with $2.5M in non-cash stock-based compensation.

• Pre-opening expenses of $3M and adjusted EBITDA projected between $19M and $21M.

• Price increase of about 2% to be implemented in Q2 fiscal 2025.