Pinstripes (PNST) AI Stock Analysis

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Pinstripes

(OTC:PNST)

Rating:40Underperform

Price Target:

$0.00

▼(-100.00%Downside)

Pinstripes' overall score is primarily affected by its financial distress, including high leverage, negative profitability, and cash flow issues. Despite positive developments in EBITDA margins and cost savings from the earnings call, significant liquidity concerns and valuation risk persist.

Pinstripes (PNST) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.06M

Dividend YieldN/A

Average Volume (3M)23.37K

Price to Earnings (P/E)―

Beta (1Y)1.15

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees1,800

SectorFinancial

Sector Strength76

IndustryRestaurants

Share Statistics

EPS (TTM)-0.19

Shares Outstanding41,212,357

10 Day Avg. Volume33,251

30 Day Avg. Volume23,372

Financial Highlights & Ratios

PEG Ratio0.00

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio-44.85

Enterprise Value/Market Cap0.00

Enterprise Value/Revenue0.00

Enterprise Value/Gross Profit0.00

Enterprise Value/Ebitda0.00

Forecast

1Y Price Target

$2.00

Price Target Upside3900.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Pinstripes Business Overview & Revenue Model

Company DescriptionPinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.

How the Company Makes MoneyPinstripes makes money primarily through its diverse revenue streams, which include food and beverage sales, gaming fees, and event bookings. The dining experience generates significant income from both in-restaurant dining and catering services. Additionally, the company earns revenue from bowling and bocce games, which attract both casual players and organized leagues. Private events, such as corporate meetings, weddings, and parties, also contribute a substantial portion of revenue, as Pinstripes offers tailored packages that include venue rental, food, and entertainment. Strategic partnerships with local businesses and community organizations help drive traffic and increase brand visibility, further enhancing revenue opportunities.

Pinstripes Earnings Call Summary

Earnings Call Date:Feb 19, 2025

(Q3-2025)

% Change Since: -89.13%|

Next Earnings Date:Jun 26, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive developments in profitability and cost savings, alongside challenges in comp growth and liquidity. While the positive aspects such as revenue growth and cost management efforts show promise, the significant issues with liquidity and negative comp trends indicate areas of concern.

Q3-2025 Updates

Positive Updates

Strong Venue-Level EBITDA Margins

The company achieved venue-level EBITDA margins of over 19% and reported their best corporate profitability quarter in two years with adjusted EBITDA of $2.7 million.

Revenue Growth

Total revenue increased by 10.4% to $35.5 million compared to the same quarter last year, with a 10.5% increase in food and beverage revenues and a 10.3% increase in recreation revenues.

Cost Reduction Initiatives

Achieved $10 million in annualized cost savings at the store level and $4 million in annualized cost savings in SG&A, which have been fully implemented and are flowing through the P&L.

New Store Openings

Opened a new venue in Walnut Creek, California, marking the 18th location, and planning to open additional locations including Coral Gables and Jacksonville.

Negative Updates

Negative Comp Growth

The company experienced negative comp trends in the mid- to high-teens during the first four weeks of the third quarter, later improving to a down 7% range.

Liquidity Concerns

As of January 5th, cash and cash equivalents were $2.4 million with $114 million of debt outstanding, leading the company to explore strategic alternatives to improve liquidity.

Challenges in Marketing Adjustments

Marketing adjustments initially had unintended negative impacts on business, contributing to comp declines, though later corrections improved the situation.

CEO Transition

CFO Tony Querciagrossa announced his departure, which might affect financial leadership continuity during a critical phase.

Company Guidance

In the third quarter of fiscal 2025, Pinstripes Holdings reported significant improvements in profitability, with venue-level EBITDA margins exceeding 19% and an adjusted corporate EBITDA of $2.7 million, marking their best corporate profitability quarter in two years. The company saw a $1.3 million improvement in venue-level EBITDA from the previous quarter, achieving over a 10% margin, excluding extraordinary expenses. However, same-store sales faced challenges, with a downturn in the mid- to high-teens initially, which improved to a negative 7% range by the end of the quarter due to adjustments in marketing and promotional strategies. Revenue for the quarter increased by 10.4% year-over-year to $35.5 million, driven by a 10.5% rise in food and beverage revenues and a 10.3% increase in recreation revenues. The company implemented $10 million in annualized cost savings at the store level and $4 million in SG&A cost reductions, contributing to a venue-level EBITDA margin of 19.2%. Pinstripes ended the quarter with $2.4 million in cash and cash equivalents and $114 million in debt, while also securing an additional $6 million funding from Oaktree to enhance liquidity.

Pinstripes Financial Statement Overview

Summary

Pinstripes faces significant financial challenges with negative net profit margins, substantial leverage, and negative cash flows despite revenue growth. Addressing operational inefficiencies and financial structure is critical for viability.

Income Statement

Neutral

Pinstripes has shown consistent revenue growth, with a 53.97% increase from 2022 to 2023, and a 6.70% increase from 2023 to 2024. Despite this, profitability remains a major concern, as indicated by negative net profit margins over the periods, though there was a slight improvement. Gross profit margin has been positive, but EBIT and EBITDA margins reflect ongoing operational challenges.

Balance Sheet

Negative

The balance sheet presents substantial risks with negative stockholders' equity indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, but high total liabilities and net debt levels signify significant leverage. The equity ratio is negative, highlighting solvency issues.

Cash Flow

Negative

Cash flow analysis reveals significant operational challenges, with negative operating and free cash flows. The free cash flow position has deteriorated further from 2023 to 2024. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income to cash.

TTM	Jun 2024	Jun 2023	Jun 2022
Breakdown
Income Statement		Total Revenue
128.79M	118.72M	111.27M	77.10M
	Gross Profit
10.49M	15.44M	14.86M	9.80M
	EBIT
-29.37M	-21.79M	-13.73M	-11.33M
	EBITDA
-4.13M	13.34M	2.70M	287.00K
	Net Income Common Stockholders
-36.10M	-6.79M	-7.53M	-9.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.38M	13.17M	8.44M	8.91M
	Total Assets
162.86M	167.32M	130.93M	114.47M
	Total Debt
197.52M	185.01M	139.38M	119.55M
	Net Debt
195.13M	171.84M	130.94M	110.64M
	Total Liabilities
258.57M	236.48M	245.93M	224.03M
	Stockholders Equity
-95.71M	-69.16M	-115.00M	-109.56M
Cash Flow		Free Cash Flow
-37.78M	-54.81M	-25.03M	-7.48M
	Operating Cash Flow
-19.35M	-32.68M	-12.04M	-5.59M
	Investing Cash Flow
-18.43M	-22.13M	-12.99M	-1.90M
	Financing Cash Flow
531.00K	59.55M	24.56M	11.06M

Pinstripes Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.05

Price Trends

50DMA

0.06

Negative

100DMA

0.14

Negative

200DMA

0.46

Negative

Market Momentum

MACD

>-0.01

Positive

RSI

43.72

Neutral

STOCH

8.77

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNST, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.46, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 8.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNST.

Pinstripes Risk Analysis

Pinstripes disclosed 97 risk factors in its most recent earnings report. Pinstripes reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Pinstripes Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	74 Outperform	$56.74M	14.01	6.48%	1.80%	9.38%	14.76%
CAKE	74 Outperform	$2.92B	18.50	46.60%	1.83%	4.42%	48.23%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
ARKR	53 Neutral	$35.05M	―	-22.57%	1.93%	-3.61%	-36.65%
RRGB	53 Neutral	$90.28M	―	92.02%	―	-1.68%	-140.83%
PNST	40 Underperform	$2.06M	―	9.82%	―	―	―
NDLS	40 Underperform	$35.93M	―	-978.37%	―	-0.61%	-200.32%

* Financial Sector Average

Performance Comparison

PNST

Pinstripes

0.05

-2.94

-98.33%

ARKR

Ark Restaurants

9.75

-3.85

-28.31%

BDL

Flanigan's Enterprises

30.70

4.14

15.59%

RRGB

Red Robin Gourmet

5.00

-2.66

-34.73%

CAKE

Cheesecake Factory

59.99

20.53

52.03%

NDLS

Noodles & Co

0.79

-1.31

-62.38%

Pinstripes Corporate Events

Executive/Board Changes

Pinstripes Appoints Richard Abbey as Interim CFO

Neutral

Mar 13, 2025

On March 11, 2025, Pinstripes Holdings, Inc. appointed Richard Abbey as the interim Chief Financial Officer. Abbey, with over 30 years of experience in various industries, will serve through an engagement with AP Services, LLC, an affiliate of AlixPartners. The company will pay $45,000 per week for his services. Abbey’s appointment follows a letter of intent with Oaktree Capital Management and complements the recent appointment of Caitlin Schaefer as Chief Accounting Officer.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.