Pinstripes (PNST) The 44th Annual William Blair Growth Stock Conference summary

Business performance and model

• Operates 17 high-volume sites nationwide, with AUVs of $8.6 million and nearly half of sales from private events, two-thirds of which are corporate.

• 75% of sales are food and beverage, with a 65/35 split between food and liquor; gaming accounts for 23-25% of sales and is highly profitable.

• Private events drive higher margins due to lower food, liquor, and labor costs, supported by a dedicated sales team and digital marketing investments.

• Locations are large (25,000–30,000 sq ft), often in A or A+ malls, lifestyle centers, or iconic sites, with a focus on quality ambiance and multi-generational appeal.

• Partnerships with major real estate developers and $100 million in tenant improvement dollars enable capital-light expansion.

Recent developments and financial highlights

• Transitioned from private to public company via SPAC at the end of 2023, raising $70 million to fund growth.

• Identified over $10 million in annual cost savings, expected to improve store contribution margins by at least 500 basis points.

• Opened two new locations in 2024 (Garden State Plaza and Orlando), with additional sites in Walnut Creek, Coral Gables, and Jacksonville planned.

• Signed two new leases in Greater Seattle and announced a partnership with Newmark as master broker for U.S. and international expansion.

• Targeting $9 million in sales and 17%+ venue-level EBITDA margin by year two for new locations, with cash-on-cash returns of 40% and paybacks as short as two years.

Growth strategy and expansion plans

• Plans to open 6–8 new locations annually starting in 2025, focusing on A/A+ malls, iconic sites, and select resorts or airports.

• International expansion to be pursued via capital-light, royalty-based partnerships, with active discussions in London, Australia, and Tel Aviv.

• U.S. growth will remain company-owned, leveraging landlord incentives and tenant improvement dollars.

• Suburban locations benefit from post-COVID trends, with increased demand for corporate and social events during weekdays.

• Continues to avoid B and C malls, focusing on high-traffic, high-quality co-tenancy environments.