RAVE Restaurant Q3 Results

RAVE Restaurant Group, Inc. has reported strong financial results for the third quarter of fiscal 2023, with total revenue increasing by $0.4 million to $3.0 million compared to the same period last year. The company’s adjusted EBITDA remained stable at $0.6 million, and both Pizza Inn and Pie Five saw growth in comparable store retail sales.

Pizza Inn experienced a 15.6% increase in domestic comparable store retail sales, while Pie Five saw an 8.1% increase. The company recorded a net income of $0.3 million for the quarter, with cash and cash equivalents totaling $3.9 million as of March 26, 2023. Pizza Inn finished the quarter with 122 domestic units and 33 international units, while Pie Five had 30 domestic units.

RAVE CEO Brandon Solano highlighted the company’s 12 consecutive quarters of profitability and emphasized continued investment in key initiatives for long-term performance. The company is focused on strategic investing in technologies, image prototypes, and new store openings. Solano also mentioned the rollout of significant menu changes at Pie Five, including the introduction of the “Free 4th All” promotion to drive consumer engagement and sales.

CFO Clint Fendley discussed the impact of strategic investments on the company’s net income, noting a $112,000 increase in income tax expense. However, Fendley expressed optimism for the upcoming fourth quarter, which will see the opening of new Pizza Inn buffets.

RAVE Restaurant Group uses non-GAAP financial measures such as EBITDA and Adjusted EBITDA to provide investors with a clearer picture of operating performance. These measures exclude non-operational or non-recurring expenses, allowing for more accurate comparisons across periods.

Looking ahead, RAVE Restaurant Group remains focused on innovation and customer satisfaction through its Pizza Inn and Pie Five brands. The company continues to invest in growth opportunities and strategic initiatives to drive long-term success in the competitive restaurant industry.