Pinstripes is officially a public company.
The social entertainment chain announced Tuesday that it began trading on the New York Stock Exchange after closing its merger with special purpose acquisition company Banyan Acquisition. The move was approved by Banyan’s shareholders on December 27.
As part of the merger, Pinstripes raised more than $70 million in gross proceeds to support growth and opening of new locations. That includes a $50 million senior secured loan from Oaktree Capital Management, which has the option to loan an additional $40 million.
Founder and CEO Dale Schwartz and his management team will remain in their roles post-merger.
“Today is a significant milestone for Pinstripes. Completing our business combination with Banyan and introducing Pinstripes to the public markets is a tremendous achievement and the next chapter in our business journey,” Schwartz said in a statement. “We have achieved strong results to date, and this transaction will help fuel our growth as we continue to scale and open additional Pinstripes locations. On behalf of Pinstripes, I want to thank Banyan for their strong partnership, Oaktree for their financial commitment, our Pinstripes team for their passion and dedication, and our guests who for seventeen years have joined us for countless celebrations and magical moments.”
The 15-unit chain said in June that it has room for about 150 stores in the U.S. It also described the international potential as “substantial.” Currently, the brand’s entire footprint is based in the suburbs. Pinstripes calendar year 2024 net revenue is estimated to grow to about $185 million to $195 million, resulting in projected adjusted EBITDA of $30 million to $33 million. Stores generate average-unit volumes of more than $8 million and venue-level EBITDA margins over 17 percent. On average, the revenue split between food and games is 75 percent to 25 percent.
In 2023, Pinstripes unveiled a spacious 30,000-square-foot establishment in Canoga Park, California, strategically located within the Westfield Topanga shopping center, nestled in the vibrant Warner Center district of North Los Angeles. This venue features an array of attractions, including 12 bowling lanes, four bocce courts, a fully-equipped bistro offering a diverse culinary experience, and versatile event spaces capable of accommodating gatherings ranging from 20 to 1,200 attendees. In the early weeks of December, Pinstripes made its debut in Aventura, Florida, taking up residence in a former Sears building positioned between Nordstrom and Bloomingdale’s at the Aventura Mall.
This year, Pinstripes will embark on a transformation of a 46,000-square-foot space that was previously occupied by Uniqlo at Garden State Plaza in Paramus, New Jersey—a suburban enclave close to New York City. Another venture awaits in Orlando, Florida, with a ground-up unit located near popular destinations such as Target, Shake Shack, Chick-fil-A, and just half a mile from the entrance to Disney World. Other upcoming locations include Coral Gables, Florida; Walnut Creek, California; Jacksonville, Florida; and Bellevue, Washington. More unnamed locales are planned for 2024. Meanwhile, Pinstripes is actively working to develop its 2025 and 2026 pipeline.
As the chain opens more locations, its size keeps evolving. The first few stores were close to 40,000 square feet, and for a number of years, the sweet spot was 30,000 square feet to 32,000 square feet. Pinstripes now shoots for 25,000 square feet to 27,000 square feet typically. All of these configurations vary too. Meaning, one place may be 20,000 square feet on the first floor, but 7,000 square feet on the second level. A different one could be 13,000 square feet each.
Pinstripes was created by Schwartz in 2007 in Northbrook, Illinois. Schwartz, who grew up in Cleveland, wanted to open a bowling alley and owned the Pinstripes name since 1988. One of the chain’s early board members was the founder of Maggiano’s. Another was Jack Greenberg, the former chairman and CEO of McDonald’s.
The brand will celebrate its achievement by ringing the Opening Bell at the NYSE on January 19.
“We formed Banyan to identify a strong business with promising growth in the foodservice industry and take them to the public markets, and after partnering with Pinstripes on this transaction, we are proud to say we have accomplished this goal,” Jerry Hyman, chairman of Banyan, said in a statement. “Pinstripes is a leader in experiential dining and as consumers demand multidimensional dining options in this post-COVID world, Pinstripes will continue scaling as an example for all others to follow. Once more, we’re thrilled to have played a key role in taking Pinstripes public and are confident Dale and the entire exceptional management team will continue to execute on their robust growth plans and strategy and I’m looking forward to serving on the Pinstripes board.”