Pinstripes Holdings Inc. (NYSE:PNST) Q3 2023 Earnings Call Transcript

Tony Querciagrossa: The other piece that I’d add Sharon. The corporate component of our, call it, private event business, can run considerably higher than 50% during the busy December period. The holiday parties are extraordinarily busy. We saw that again this year. So we had record holiday sales at just about every location and probably the only difference this year was the decision-making of a lot of companies was just a little longer. So companies that maybe in the past would commit in February, March, or April for a future six, eight months later December party. We had a little more of the equivalent of pop-ups with companies just all figuring out some of the culture and how to handle flexible office.

Sharon Zackfia: Okay. I guess last question for me, it’s really helpful to look at that 13 to 16 in the April quarter, and you’ve had a lot of improvement in margin year-over-year, really throughout the year. What are the pushes and pulls as you think beyond fiscal 2024 on margins at the unit level?

Tony Querciagrossa: I mean, obviously Continuing to go towards that mid-single digit same store sales growth level that we like to be at to capture a lot of operating leverage. That would probably be the key contributor. We still think we’ve got multiple quarters, well into fiscal 2025, of opportunity and a number of different cost lines at the venue level, labor being a big one, but also a couple other areas as well.

Sharon Zackfia: Great. Thank you.

Dale Schwartz: [indiscernible]

Sharon Zackfia: Sorry, Dale. I didn’t mean to cut you off.

Dale Schwartz: No, I was only just going to add the continued increase in our bowling and bocce sales as a percentage of total sales has continued to increase. And it’s very, as you know, 100% gross margin. So that plays right into that higher store contribution.

Sharon Zackfia: Great, thank you.

Operator: [Operator Instructions] There are no further questions in the queue. I’d like to hand the call back to Dale Schwartz for closing remarks.

Dale Schwartz: I just want to thank everyone for joining us this afternoon. We’re looking forward the next opening in Orlando, Walnut Creek, and Coral Gables the next several months and we welcome you joining us at any location of ours to enjoy the magic of pinstripes. Thank you.

Operator: Ladies and gentlemen this does include today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.