Wed, Sep 4, 9:40 PM (132 days ago)
For the quarter ending July 21, 2024, Pinstripes Holdings, Inc. reported a significant increase in total revenue to $30,595,000, up 18.9% from the prior year, driven by new store openings. However, the company faced a substantial operating loss of $7,612,000, a dramatic increase from a loss of $873,000 in the same quarter last year. Key factors contributing to the loss include rising costs in food and beverage (up 24.7%), labor (up 25.4%), and occupancy costs (up 550.9%) due to new locations and prior lease modifications. Net loss for the quarter reached $10,006,000, compared to a loss of $3,046,000 last year. The company’s cash position weakened, with cash and equivalents dropping to $5,029,000 from $13,171,000. The company is exploring additional financing to address liquidity concerns and has indicated substantial doubt about its ability to continue as a going concern. The business combination with Banyan has resulted in increased operational costs and the need for enhanced internal controls, particularly following identified weaknesses in financial reporting processes.