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Pinstripes (PNSTQ)
OTHER OTC:PNSTQ
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Pinstripes
(OTC:PNSTQ)
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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.
Positive Factors
Revenue Growth
Consistent revenue growth, driven by increases in food, beverage, and recreation revenues, highlights the company's ability to expand its market presence and attract more customers, supporting long-term business sustainability.
Cost Reduction Initiatives
Significant cost savings initiatives enhance operational efficiency and margin sustainability, providing a stronger financial foundation and improving profitability over time.
New Store Openings
Expansion into new locations like Walnut Creek indicates strategic growth and increased market penetration, which can drive future revenue and strengthen competitive positioning.
Negative Factors
Liquidity Concerns
Significant liquidity issues with high debt levels pose risks to financial stability and limit the company's ability to invest in growth opportunities, potentially affecting long-term viability.
Negative Comp Growth
Declining same-store sales indicate challenges in maintaining customer engagement and market competitiveness, which could impact revenue growth and profitability if not addressed.
CEO Transition
Leadership changes, particularly in financial roles, can disrupt strategic continuity and affect investor confidence, posing risks to effective financial management during critical periods.
Pinstripes (PNSTQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.00
Dividend YieldN/A
Average Volume (3M)71.00K
Price to Earnings (P/E)―
Beta (1Y)-61.32
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,800
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)N/A
Shares Outstanding41,212,357
10 Day Avg. Volume184,384
30 Day Avg. Volume70,995
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)-1.79
Price to Sales (P/S)1.04
P/FCF Ratio-2.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative aspects. While there were significant improvements in profitability and revenue growth, challenges such as negative same-store sales and increased operating costs persisted. Liquidity remains tight, and leadership changes could pose concerns.Q3-2025 Updates
Positive Updates
Record Corporate Profitability
Third quarter fiscal 2025 marked the best corporate profitability in two years with adjusted EBITDA of $2.7 million.
Strong Venue-Level EBITDA Margins
Venue-level EBITDA margins exceeded 19%, indicating strong operational efficiency.
Revenue Growth
Total revenue increased by 10.4% to $35.5 million, with both food and beverage and recreation revenues seeing over 10% growth.
Cost Reductions Achieved
Achieved $10 million in annualized cost savings at the store level and $4 million in SG&A cost reductions, leading to improved profitability.
New Store Opening
Opened 18th location in Walnut Creek, California, contributing to revenue and future growth potential.
Negative Updates
Negative Same-Store Sales
Same-store sales were down in the negative mid- to high-teens initially, with improvements only bringing the decline to 7% by the end of the quarter.
Occupancy and Operating Cost Increases
Occupancy costs as a percentage of total revenue increased by 140 basis points, and other operating expenses increased by 60 basis points.
Limited Liquidity
As of January 5, 2025, the company had $2.4 million in cash and $114 million of debt, indicating tight liquidity.
CFO Departure
CFO Tony Querciagrossa announced his departure, which could indicate potential instability in financial leadership.
Company Guidance
During the third quarter of fiscal 2025, Pinstripes Holdings observed significant profitability improvements, with a venue-level EBITDA margin of 19.2% and adjusted corporate EBITDA of $2.7 million, marking their best corporate profitability quarter in two years. The company also reported a 10.4% increase in total revenue, reaching $35.5 million, largely driven by a 10.5% increase in food and beverage revenues and a 10.3% increase in recreation revenues. Despite facing negative same-store sales in the mid- to high-teens initially, strategic adjustments led to an improvement to a negative 7% range by the end of the quarter. Pinstripes managed to remove $10 million in annualized cost savings at the store level and $4 million from SG&A, contributing to their profitability. Looking ahead, the company remains focused on enhancing topline growth while maintaining their cost structure, as they continue to explore strategic alternatives to improve liquidity, having secured an additional $6 million funding from Oaktree.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
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
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
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.| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 164.31M | 118.72M | 111.27M | 77.10M |
| Gross Profit | 16.90M | 15.44M | 14.86M | 9.80M |
| EBITDA | -3.96M | 13.34M | 2.70M | 287.00K |
| Net Income | -44.18M | -6.79M | -7.53M | -9.92M |
Balance Sheet | ||||
| Total Assets | 162.86M | 167.32M | 130.93M | 114.47M |
| Cash, Cash Equivalents and Short-Term Investments | 2.38M | 13.17M | 8.44M | 8.91M |
| Total Debt | 197.52M | 185.01M | 139.38M | 119.55M |
| 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 | -38.40M | -54.81M | -25.03M | -7.48M |
| Operating Cash Flow | -11.70M | -32.68M | -12.04M | -5.59M |
| Investing Cash Flow | -26.70M | -22.13M | -12.99M | -1.90M |
| Financing Cash Flow | 284.00K | 59.55M | 24.56M | 11.06M |
Pinstripes Technical Analysis
Negative
0.01
Price Trends
0.06
Negative
0.06
Negative
0.18
Negative
Market Momentum
-0.01
Positive
37.07
Neutral
5.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNSTQ, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.06, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.07 is Neutral, neither overbought nor oversold. The STOCH value of 5.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNSTQ.
Pinstripes Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | $12.67M | 11.92 | 3.85% | ― | 1.84% | 12.10% | |
45 Neutral | $118.63M | -6.82 | -115.37% | ― | -15.43% | -310.94% | |
44 Neutral | $40.24M | -0.81 | ― | ― | -0.35% | -37.02% | |
41 Neutral | $73.65M | -1.24 | ― | ― | -3.61% | 2.06% | |
40 Underperform | $41.00 | -0.01 | ― | ― | ― | ― | |
40 Underperform | $23.19M | -2.05 | -29.84% | ― | -9.70% | -194.23% |
* Consumer Cyclical Sector Average
PNSTQ
Pinstripes
0.01
-0.36
-97.30%
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PC
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9.40
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46.42%
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.