Core Insights - Pinstripes Holdings Inc. filed for Chapter 11 bankruptcy protection on September 8, 2023, and closed several locations less than two years after going public through a SPAC deal [2][3] Company Overview - Pinstripes, based in Northbrook, Illinois, offers an eatertainment concept that includes bowling, bocce, and a bistro menu [3] - The company began trading publicly in early January 2024 through a SPAC deal with Banyan Acquisition Corp. [3] Competitive Response - Lucky Strike Entertainment Corp., based in Richmond, Virginia, is providing courtesy discounts to displaced Pinstripes clients to facilitate their events at one of its 350 locations nationwide [2][4] - Lucky Strike is also inviting former Pinstripes employees to apply for open roles on its career site [2] Strategic Focus - Lucky Strike's president, Lev Ekster, emphasized the company's commitment to serving guests and team members while continuing to grow thoughtfully and invest in their venues [4]

Core Insights - The Pinkfong Company has formed an exclusive distribution partnership with Mattel to reintroduce the stop-motion classic Pingu to Korean audiences [1][2][4] - Pingu episodes from the 90s and 2000s will be distributed, including the Pingu Classic Series, Pingu at the Wedding Party special, and Pingu in the City, with premieres starting September 19 [1][4] - This partnership aims to leverage both companies' strengths in family entertainment and storytelling, enhancing their reach and impact in the market [2][4] Company Overview - The Pinkfong Company is recognized for its diverse portfolio of family IPs, including Baby Shark, and aims to connect audiences through engaging content [2][5] - Mattel is a leading global toy and family entertainment company, known for its iconic brands such as Barbie and Hot Wheels, and focuses on expanding its storytelling across various media [2][6] Historical Context - Pingu has been a beloved pop culture icon since its debut in the 1980s, appealing to audiences in over 150 countries with its unique charm and humor [3][4] - The series features a mischievous young penguin and has maintained its popularity across generations, making it a fitting addition to The Pinkfong Company's offerings [3][4]

Financial Data and Key Metrics Changes - The company reported total revenue of $301.2 million for fiscal year 2025, a 6.1% increase from $283.9 million in the previous year [19] - Adjusted EBITDA for the year was $88.7 million, up from $83.4 million, reflecting a positive trend in profitability [19] - Same store sales declined by 4.1%, but showed sequential improvement each month in the fourth quarter [19] Business Line Data and Key Metrics Changes - The retail business remained steady, while league operations experienced low single-digit growth and the events business faced a high single-digit decline [19] - The acquisition of Boomers and two new water parks contributed an additional $7 million in EBITDA [19] - Food revenue showed positive same store comps of 2.5%, while alcohol comps were down 2.7% but improving [12][19] Market Data and Key Metrics Changes - California, which accounts for approximately 20% of total sales, contributed $6 million to the same store sales decline [20] - New York is performing well, with positive comps attributed to increased marketing efforts [56] Company Strategy and Development Direction - The company is focused on building a premier location-based entertainment platform in North America, with significant investments in water parks and family entertainment centers [8][10] - The strategy includes enhancing guest experiences and expanding market leadership through acquisitions and organic growth [10] - The company aims to reach 100 Lucky Strike locations by year-end, up from 55 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive momentum heading into fiscal year 2026, driven by strong July performance and the successful season pass program [6][22] - The company anticipates total revenue growth of 5% to 9% for fiscal year 2026, translating to $1.26 billion to $1.31 billion in revenue [22] - Management highlighted the importance of marketing investments to capture additional market share and improve brand awareness [47] Other Important Information - The company acquired 58 properties for $36 million, which will lower GAAP rent expense and capitalized lease expense in fiscal year 2026 [21][22] - The liquidity position remains strong at $342 million, with $60 million in cash [23] Q&A Session Summary Question: Can you walk us through the assumptions embedded in the new targets for 2026 EBITDA guidance? - Management noted that July showed positive growth, and the guidance reflects increased marketing investments and the expected positive impact from newly acquired assets [26][27] Question: How do you see the cadence playing out between the quarters in fiscal 2026? - Management expects double-digit growth in September, with the fourth quarter projected to be $10 million to $20 million higher than the second quarter [30] Question: What is the outlook for the events side of the business? - Management indicated that the comp gets easier starting in September, and they are focusing on increasing marketing spend to capture market share [34] Question: How are you approaching the business of water parks and family entertainment centers compared to bowling? - The same playbook is applied, focusing on improving asset quality and enhancing food and beverage offerings [36] Question: What is the expected trajectory for location operating costs? - Management indicated that location operating costs are expected to return to historical trends after accounting for non-cash charges [66] Question: Can you provide insights on the impact of marketing investments on recent performance? - Management highlighted that increased marketing spend has driven significant results, particularly in the successful season pass program [46] Question: What is the expected annualized cost to operate Boomers? - Boomers is currently running close to a 25% EBITDA margin, with expectations for revenue growth in the next twelve months [84] Question: What is the non-acquisition CapEx guidance for FY 2026? - Non-acquisition CapEx is expected to be around $130 million, down from the previous year as the company focuses on high ROI initiatives [85]