Financial Performance - The company reported a net income of $0.6 million for Q2 2025, a 9.8% increase year-over-year[3] - Total revenue for Q2 2025 was $2.8 million, reflecting a 4% increase compared to the same period last year[3] - Adjusted EBITDA rose to $0.8 million in Q2 2025, marking a 51% increase from the prior year[3] - Net income for the six months ended December 29, 2024, was $1,133 million, an increase from $939 million for the same period in 2023, representing a growth of 20.7%[17] - Cash provided by operating activities for the six months ended December 29, 2024, was $1,216 million, significantly higher than $305 million for the same period in 2023[17] - Adjusted EBITDA for the six months ended December 29, 2024, reached $1,527 million, compared to $1,122 million for the same period in 2023, reflecting a growth of 36.1%[19] - The company incurred stock-based compensation expenses of $126 million for the six months ended December 29, 2024, up from $82 million in the same period of 2023[17] - The company paid $98 million in income taxes for the six months ended December 29, 2024, compared to $4 million in the same period of 2023[17] - Interest income for the six months ended December 29, 2024, was $(169) million, compared to $(48) million for the same period in 2023[19] - The company experienced a recovery of $8 million in credit losses for the six months ended December 29, 2024, compared to a provision of $35 million in the same period of 2023[17] Sales and Operations - Pizza Inn domestic comparable store retail sales increased by 0.8% in Q2 2025, while Pie Five's comparable store sales decreased by 11.4%[3] - The company has signed development agreements for 30 new Pizza Inn buffet restaurants[5] - A new stuffed crust chocolate chip Pizzert was successfully introduced during Q2 2025[5] - The company plans to introduce three varieties of baked pastas in Q3 2025 as part of its menu innovation strategy[5] Cash and Investments - Cash and cash equivalents stood at $2.9 million, with short-term investments totaling $6.0 million as of December 29, 2024[3] - Cash and cash equivalents at the end of the period were $2,871 million, a slight decrease from $5,306 million at the end of the previous period[17] - The company reported a net decrease in cash and cash equivalents of $15 million for the six months ended December 29, 2024[17] - Total cash used in investing activities for the six months ended December 29, 2024, was $1,049 million, compared to $16 million in the same period of 2023[17] Balance Sheet - The balance sheet remains strong, with current assets totaling seven times the amount of current liabilities[5] - Profit before tax for the fiscal year to date is up over 36% compared to the previous year[5]

Sales Performance - For the three months ended December 29, 2024, total domestic retail sales for Pizza Inn increased by $0.3 million, or 1.2%, compared to the same period of the prior year [81]. - For the six months ended December 29, 2024, total domestic retail sales for Pizza Inn decreased by $0.3 million, or 0.7%, compared to the same period of the prior year [82]. - Comparable store retail sales for Pizza Inn increased by $0.2 million, or 0.8%, for the three-month period ended December 29, 2024, compared to the same period of the prior fiscal year [81]. - Pie Five total domestic retail sales decreased by $1.6 million, or 37.0%, for the three months ended December 29, 2024 compared to the same period of the prior year [87]. - Comparable store retail sales decreased by $0.3 million, or 11.4%, for the three-month period ended December 29, 2024 as compared to the same period of the prior fiscal year [87]. - For the six months ended December 29, 2024, total domestic retail sales decreased by $3.4 million, or 37.3%, compared to the same period of the prior year [88]. Financial Performance - Adjusted EBITDA for the fiscal quarter ended December 29, 2024, increased by $0.3 million compared to the same period of the prior fiscal year [78]. - The company reported a net income of $607,000 for the three months ended December 29, 2024, compared to $553,000 for the same period of the prior year [80]. - Total revenues for the three-month period ended December 29, 2024 were $2.9 million, compared to $2.7 million for the same period in the prior fiscal year [94]. - Total revenues for the six-month period ended December 29, 2024 were $5.9 million, compared to $5.8 million for the same period in the prior fiscal year [94]. - Basic net income per share was stable at $0.04 for the three months ended December 29, 2024, with net income of $0.6 million on revenues of $2.9 million [104]. - Basic net income per share increased by $0.01 to $0.08 for the six months ended December 29, 2024, with net income of $1.1 million on revenues of $5.9 million [105]. Unit Performance - The number of domestic franchised/licensed units remained stable at 102, with a total of 122 units across all concepts as of December 29, 2024 [73]. - The average number of Buffet Units open increased from 75 to 78 for the three months ended December 29, 2024, compared to the same period of the prior year [81]. - The total number of international units increased from 24 to 27 during the six months ended December 29, 2024 [84]. - Average units open in the period decreased from 25 to 20 for the three months ended December 29, 2024 [87]. - The Pie Five units remained stable at 20 during the three and six months ended December 29, 2024, with no transfers or closures [89]. - The company anticipates a modest increase in both domestic and international Pizza Inn units in future periods [84]. - The company anticipates a modest decrease in Pie Five units in future periods [89]. Expenses and Cash Flow - General and administrative expenses remained stable at $1.3 million for the three-month period ended December 29, 2024, with a 2.0% decrease driven by lower legal fees [97]. - Total franchise expenses remained stable at $0.8 million for the three months ended December 29, 2024, with a 1.8% decrease compared to the prior fiscal year [98]. - Cash provided by operating activities was $1.2 million for the six months ended December 29, 2024, compared to $0.3 million for the same period in the prior fiscal year [108]. - Cash used in investing activities was $1.0 million for the six months ended December 29, 2024, primarily due to increased purchases of U.S. Treasury bills [109]. - Net cash used in financing activities was $0.2 million for the six months ended December 29, 2024, compared to $0.3 million for the same period in the prior fiscal year [110]. Other Financial Metrics - Provision for credit losses was $9 thousand for the three months ended December 29, 2024, down from $10 thousand in the same period of the prior fiscal year [99]. - Interest income increased by $41 thousand to $87 thousand for the three months ended December 29, 2024, primarily driven by interest received on U.S. Treasury bills [100]. - The company recorded an income tax expense of $144 thousand for the three months ended December 29, 2024, compared to an income tax benefit of $13 thousand in the same period of the prior fiscal year [102]. - As of December 29, 2024, the company has received $0.6 million from the employee retention credit, with $0.1 million still outstanding [112].

Core Insights - Rave Restaurant Group, Inc. reported earnings per share of 4 cents for the first quarter of fiscal 2025, an increase of 1 cent year over year [1] - The company experienced a revenue decline of 1.2% year over year, totaling $3.1 million, primarily due to lower revenues from the Pie Five Franchising segment [2] - The operating income for the quarter was $0.7 million, reflecting a year-over-year increase of 34.2%, while net income rose by 36.3% to $2.5 million [8] Revenue Breakdown - Rave Restaurant's revenues are derived from two segments: Pizza Inn Franchising and Pie Five Franchising [3] - Pizza Inn Franchising generated revenues of $2.7 million, up 4.5% year over year, attributed to increased supplier and distributor incentives [3] - Pie Five Franchising revenues were $0.3 million, down 29.6% year over year, mainly due to decreases in domestic royalties [4] Comparable Store Sales - Pizza Inn's domestic comparable store retail sales decreased by 2.1% year over year, with a total domestic unit count of 102 and an international unit count of 26 [4] - Pie Five's domestic comparable store retail sales saw a more significant decline of 8.7% year over year, with a domestic unit count of 20 [5] Operating Expenses - General and administrative expenses increased by 7.4% year over year to $1.4 million, driven by higher legal fees [6] - Franchise expenses decreased by 15.1% year over year to $0.9 million, with Pizza Inn franchise expenses down 5.7% and Pie Five franchise expenses down 53.7% [7] Profitability Metrics - Adjusted EBITDA for the quarter increased by 22.9% year over year to $0.7 million [8] - The company exited the quarter with cash and cash equivalents of $8.4 million, up from $7.8 million at the end of fiscal 2024 [9] Strategic Developments - Management signed a four-unit development agreement during the quarter, bringing the total domestic sites contracted for development to 25 [10] - The introduction of the Sandworm Pizzert has boosted dessert sales, with plans for further dessert innovations and main course introductions in the near future [11] Challenges - The decline in top-line results and comparable store retail sales for the Pizza Inn Franchising segment were noted as disappointing [12]

Financial Performance - The company reported a net income of $0.5 million for Q1 fiscal 2025, a 36.3% increase from the same period last year[2] - Total revenue remained flat at $3.1 million for Q1 fiscal 2025 compared to the prior year[2] - Adjusted EBITDA increased by $0.1 million to $0.7 million for Q1 fiscal 2025[3] - Net income for the three months ended September 29, 2024, was $526,000, an increase of 36% compared to $386,000 for the same period in 2023[14] - Adjusted EBITDA for the three months ended September 29, 2024, was $720,000, up 23% from $586,000 in the prior year[15] Sales Performance - Pizza Inn domestic comparable store retail sales decreased by 2.1% in Q1 fiscal 2025[3] - Pie Five domestic comparable store retail sales decreased by 8.7% in Q1 fiscal 2025[4] Cash and Investments - Cash and cash equivalents were $1.4 million, while short-term investments were $7.1 million as of September 29, 2024[4] - The balance sheet remains strong with $8.4 million in cash and liquid short-term investments, sufficient to fund proposed share repurchases[5] - Cash provided by operating activities decreased to $520,000 from $628,000 year-over-year, reflecting a decline of approximately 17%[14] - The company reported a net decrease in cash and cash equivalents of $1,503,000, compared to an increase of $616,000 in the same quarter last year[14] - Total cash and cash equivalents at the end of the period were $1,383,000, down from $5,944,000 a year earlier, representing a decline of approximately 77%[14] - The company made purchases of short-term investments totaling $5,039,000 during the quarter, with no such purchases in the prior year[14] Expenses - Stock-based compensation expense was $73,000 for the three months ended September 29, 2024, slightly down from $79,000 in the same period last year[15] - The company incurred income tax expenses of $50,000, significantly higher than $5,000 in the prior year[14] - Depreciation and amortization expenses decreased to $43,000 from $55,000 year-over-year, a reduction of approximately 22%[15] Development and Innovations - The company signed a four-unit development agreement, bringing the total domestic sites contracted for development to 25[5] - A new online ordering platform led to a double-digit increase in online sales for Pizza Inn[5] - The company plans to introduce a new dessert innovation in early December and main course innovations early next calendar year[5] Franchise Performance - Franchisee default and closed store revenue impacts were recorded at $(9,000) compared to $(64,000) in the previous year, indicating an improvement[15]

DALLAS, Nov. 07, 2024 (GLOBE NEWSWIRE) -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the first quarter of fiscal 2025 ended Sept. 29, 2024. First Quarter Highlights: The company recorded net income of $0.5 million for the first quarter of fiscal 2025, a 36.3% increase from the same period of the prior year.Income before taxes increased by $0.2 million to $0.7 million for the first quarter of fiscal 2025 compared to the same period of the prior year.Total revenue was $3.1 ...

Rave Restaurant Group, Inc. (RAVE) reported earnings per share (EPS) of 6 cents in the fourth quarter of fiscal 2024, which increased 50% year over year. Full-year EPS was 17 cents, up 70% compared with that at the end of the comparable fiscal 2023 period. RAVE's Revenues in Detail Rave Restaurant registered revenues of $3.4 million in the fiscal fourth quarter, up $0.3 million year over year. Lower revenues from the Pie Five Franchising segment dampened the topline. Full-year revenues were $12.2 million, r ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) RAVE Restaurant Group reported strong Q3 FY2024 financial performance and strategic operational updates for its brands [Third Quarter Financial & Operational Highlights](index=1&type=section&id=Third%20Quarter%20Highlights) RAVE Restaurant Group reported increased net income and Adjusted EBITDA for Q3 FY2024, with stable revenue and slight comparable sales decreases for Pizza Inn and Pie Five Third Quarter Financial Highlights (YoY) | Metric | Q3 FY2024 (Millions) | Q3 FY2023 (Millions) | Change (YoY) (Millions) | | :-------------------------------- | :------------------- | :------------------- | :---------------------- | | Net Income | $0.7 | $0.3 | +$0.4 | | Income Before Taxes | $0.9 | $0.46 | +$0.44 (95.2%) | | Total Revenue | $3.0 | $3.0 | Stable | | Adjusted EBITDA | $0.8 | $0.6 | +$0.2 | | Diluted EPS | $0.04 | $0.02 | +$0.02 | - Pizza Inn domestic comparable store retail sales **decreased by 1.9%** in Q3 FY2024, following a **15.6% increase** in Q3 FY2023[3](index=3&type=chunk) - Pie Five domestic comparable store retail sales **decreased by 6.4%** in Q3 FY2024, following an **8.4% increase** in Q3 FY2023[3](index=3&type=chunk) - Cash and cash equivalents totaled **$6.3 million** on March 24, 2024[3](index=3&type=chunk) - Unit Counts: Pizza Inn domestic: **104**, Pizza Inn international: **21**, Pie Five domestic: **23**[3](index=3&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Brandon Solano highlighted 16 consecutive quarters of profitability, steady same-store sales, and executive team restructuring for savings and talent - Achieved **16th consecutive quarter of profitability** with steady same-store sales at both Pizza Inn and Pie Five in Q3[4](index=4&type=chunk) - Restructured executive team, leading to **significant savings** in employee-related expenses and elevated talent[4](index=4&type=chunk) - Over the past two years, same-store sales increased by **13.7% at Pizza Inn** and by **1.7% at Pie Five**[4](index=4&type=chunk) - Over the past three years, Q3 same-store sales grew **36.5% at Pizza Inn** and **23.1% at Pie Five**[4](index=4&type=chunk) - Net income for the first three quarters of the current fiscal year (**$1.6 million**) matched the total net income delivered in all four quarters combined in the prior fiscal year[4](index=4&type=chunk) - Committed to expanding reimaging and marketing programs, with **12 Pizza Inn restaurants** set to begin the reimage process and **5 already in progress or completed**, expecting double-digit same-store sales increases post-completion[4](index=4&type=chunk) - Generated over **$1.0 million in operating cash** this quarter[4](index=4&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) RAVE Restaurant Group uses non-GAAP measures like EBITDA and Adjusted EBITDA to provide supplemental insights into operating performance and aid strategic planning [Definition and Use of Non-GAAP Measures](index=2&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) RAVE Restaurant Group uses non-GAAP measures (EBITDA, Adjusted EBITDA) to offer supplemental insights into operating performance, aiding evaluation and strategic planning - Purpose: Non-GAAP measures (**EBITDA, Adjusted EBITDA**) are used as supplemental measures of operating performance for investors and management, aiding in evaluating business strategies and for planning and budgeting[5](index=5&type=chunk) - **EBITDA Definition**: Earnings before interest, taxes, depreciation, and amortization[6](index=6&type=chunk) - **Adjusted EBITDA Definition**: EBITDA adjusted for stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs[7](index=7&type=chunk) - Disclaimer: These non-GAAP financial measures should not be viewed as an alternative or substitute for financial statements prepared in accordance with GAAP[7](index=7&type=chunk) [Company Overview](index=4&type=section&id=Company%20Overview) RAVE Restaurant Group, Inc. is a Dallas-based franchisor of two distinct pizza concepts: Pizza Inn and Pie Five [About RAVE Restaurant Group, Inc.](index=4&type=section&id=About%20RAVE%20Restaurant%20Group%2C%20Inc.) RAVE Restaurant Group, Inc. is a Dallas-based franchisor, licensor, and supplier of two pizza concepts: Pizza Inn and Pie Five Pizza - **Headquarters**: Dallas, Texas[9](index=9&type=chunk) - **Business Model**: Franchises, licenses, and supplies Pie Five and Pizza Inn restaurants domestically and internationally[9](index=9&type=chunk) - **Brands**: - **Pizza Inn**: Established in 1958, known for its house-made dough, 100% whole milk mozzarella cheese, fresh ingredients, house-made signature sauce, friendly service, and a small-town buffet vibe[9](index=9&type=chunk) - **Pie Five Pizza**: Introduced in 2011, a fast-casual pizza brand offering personalization, sophisticated ingredients, speed, daily baked craft pizzas, house-made ingredients, creative recipes, and craveable crust creations[9](index=9&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) RAVE Restaurant Group's financial statements show improved profitability, increased assets, and strong cash generation for the current fiscal year [Condensed Consolidated Statements of Income](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) RAVE Restaurant Group reported stable Q3 FY2024 revenues, reduced costs, and significantly increased net income for both the quarter and nine-month period Condensed Consolidated Statements of Income (in thousands) | Metric | Three Months Ended March 24, 2024 (Thousands) | Three Months Ended March 26, 2023 (Thousands) | Nine Months Ended March 24, 2024 (Thousands) | Nine Months Ended March 26, 2023 (Thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | REVENUES | $2,962 | $2,970 | $8,795 | $8,841 | | Total costs and expenses | $2,108 | $2,532 | $6,883 | $7,516 | | INCOME BEFORE TAXES | $854 | $438 | $1,912 | $1,325 | | Income tax expense | $(200) | $(115) | $(319) | $(347) | | NET INCOME | $654 | $323 | $1,593 | $978 | | INCOME PER SHARE - DILUTED | $0.04 | $0.02 | $0.11 | $0.06 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 24, 2024, RAVE Restaurant Group's total assets and shareholders' equity increased, while total liabilities decreased, indicating a stronger financial position Condensed Consolidated Balance Sheets (in thousands) | Metric | March 24, 2024 (Thousands) | June 25, 2023 (Thousands) | Change (Thousands) | | :------------------------------------ | :------------------------- | :------------------------ | :----------------- | | Cash and cash equivalents | $6,318 | $5,328 | +$990 | | Total current assets | $8,214 | $6,834 | +$1,380 | | Total assets | $14,956 | $14,237 | +$719 | | Total current liabilities | $1,939 | $2,198 | -$259 | | Total liabilities | $3,156 | $3,846 | -$690 | | Total shareholders' equity | $11,800 | $10,391 | +$1,409 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) RAVE Restaurant Group generated increased cash from operations and significantly reduced cash outflow from financing activities, leading to a net increase in cash for the nine-month period Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Nine Months Ended March 24, 2024 (Thousands) | Nine Months Ended March 26, 2023 (Thousands) | Change (Thousands) | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | :----------------- | | Cash provided by operating activities | $1,331 | $1,233 | +$98 | | Cash used in investing activities | $(30) | $(80) | +$50 | | Cash used in financing activities | $(311) | $(5,009) | +$4,698 | | Net increase (decrease) in cash and cash equivalents | $990 | $(3,856) | +$4,846 | | Cash and cash equivalents, end of period | $6,318 | $3,867 | +$2,451 | [Non-GAAP Reconciliation](index=8&type=section&id=ADJUSTED%20EBITDA) This section provides a reconciliation of RAVE Restaurant Group's GAAP net income to its non-GAAP EBITDA and Adjusted EBITDA measures [Adjusted EBITDA Reconciliation](index=8&type=section&id=ADJUSTED%20EBITDA%20Reconciliation) RAVE Restaurant Group's reconciliation shows significant increases in both EBITDA and Adjusted EBITDA for the three and nine months ended March 24, 2024 Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended March 24, 2024 (Thousands) | Three Months Ended March 26, 2023 (Thousands) | Nine Months Ended March 24, 2024 (Thousands) | Nine Months Ended March 26, 2023 (Thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income | $654 | $323 | $1,593 | $978 | | EBITDA | $867 | $492 | $1,989 | $1,484 | | Adjusted EBITDA | $842 | $568 | $1,964 | $1,725 | [Additional Information](index=3&type=section&id=Additional%20Information) This section includes important disclaimers regarding forward-looking statements and provides essential contact information [Note Regarding Forward-Looking Statements](index=3&type=section&id=Note%20Regarding%20Forward%20Looking%20Statements) This disclaimer highlights that statements in the press release are forward-looking, subject to risks, and not guaranteed to be accurate - Statements in the press release, other than historical information, may be considered **forward-looking statements**[8](index=8&type=chunk) - These statements are based on current expectations that involve **numerous risks, uncertainties, and assumptions**[8](index=8&type=chunk) - Assumptions relate to cost-cutting measures, reimaging initiatives, development pipeline, economic/competitive/market conditions, regulatory framework, and future business decisions[8](index=8&type=chunk) - Many factors are difficult or impossible to predict accurately and are **beyond the control of RAVE Restaurant Group, Inc.**[8](index=8&type=chunk) - There can be **no assurance** that any forward-looking statements will prove to be accurate, and their inclusion should not be regarded as a representation that objectives and plans will be achieved[8](index=8&type=chunk) [Contact Information](index=4&type=section&id=Contact) Provides essential contact details for investor relations at RAVE Restaurant Group, Inc. - **Department**: Investor Relations[10](index=10&type=chunk) - **Company**: RAVE Restaurant Group, Inc[10](index=10&type=chunk) - **Phone**: 469-384-5000[10](index=10&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) Commission File Number: 0-12919 RAVE RESTAURANT GROUP, INC. (Exact name of registrant as specified in its charter) Missouri 45-3189287 Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☑ Smaller reporting company ☑ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or rev ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported increased net income for both three and six-month periods, with total assets slightly decreasing and total liabilities significantly reduced, resulting in higher shareholders' equity Condensed Consolidated Statements of Income (Unaudited) | (In thousands) | Three Months Ended Dec 24, 2023 | Three Months Ended Dec 25, 2022 | Six Months Ended Dec 24, 2023 | Six Months Ended Dec 25, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $2,792 | $2,866 | $5,881 | $5,871 | | **Income Before Taxes** | $540 | $488 | $1,058 | $887 | | **Net Income** | $553 | $348 | $939 | $655 | | **Diluted EPS** | $0.04 | $0.02 | $0.07 | $0.04 | Condensed Consolidated Balance Sheets (Unaudited) | (In thousands) | Dec 24, 2023 | June 25, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $5,306 | $5,328 | | **Total current assets** | $7,106 | $6,834 | | **Total assets** | $14,160 | $14,237 | | **Total current liabilities** | $1,697 | $2,198 | | **Total liabilities** | $3,059 | $3,846 | | **Total shareholders' equity** | $11,101 | $10,391 | Condensed Consolidated Statements of Cash Flows (Unaudited) | (In thousands) | Six Months Ended Dec 24, 2023 | Six Months Ended Dec 25, 2022 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $305 | $792 | | **Cash used in investing activities** | $(16) | $(77) | | **Cash used in financing activities** | $(311) | $(5,009) | | **Net decrease in cash** | $(22) | $(4,294) | | **Cash and cash equivalents, end of period** | $5,306 | $3,429 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue recognition, lease accounting, segment reporting, and stock-based compensation - The company's revenue is primarily generated from franchise royalties, supplier and distributor incentives, and advertising fund contributions[29](index=29&type=chunk)[37](index=37&type=chunk) - The company has two reportable operating segments: Pizza Inn Franchising and Pie Five Franchising. Corporate administration costs are partially allocated to these segments[61](index=61&type=chunk)[62](index=62&type=chunk) Segment Income Before Taxes (Six Months Ended) | (In thousands) | Six Months Ended Dec 24, 2023 | Six Months Ended Dec 25, 2022 | | :--- | :--- | :--- | | Pizza Inn Franchising | $3,263 | $3,206 | | Pie Five Franchising | $469 | $503 | | Corporate administration and other | $(2,674) | $(2,822) | | **Total Income before taxes** | **$1,058** | **$887** | - As of December 24, 2023, there was **$328 thousand** in unamortized stock-based compensation expense related to Restricted Stock Units (RSUs), to be amortized over the next ten months[55](index=55&type=chunk)[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports increased net income, stable revenues, Pizza Inn sales growth, Pie Five sales decline, and stable Adjusted EBITDA - Net income for the three months ended Dec 24, 2023, was **$0.6 million** (**$0.04 per share**), compared to **$0.3 million** (**$0.02 per share**) in the prior-year period[70](index=70&type=chunk) - For the six months ended Dec 24, 2023, net income was **$0.9 million** (**$0.07 per share**) on stable revenues of **$5.9 million**, compared to **$0.7 million** (**$0.04 per share**) in the prior-year period[71](index=71&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | | Six Months Ended Dec 24, 2023 | Six Months Ended Dec 25, 2022 | | :--- | :--- | :--- | | Net income | $939 | $655 | | EBITDA | $1,170 | $992 | | **Adjusted EBITDA** | **$1,170** | **$1,157** | [Pizza Inn Brand Summary](index=19&type=section&id=Pizza%20Inn%20Brand%20Summary) Pizza Inn's domestic retail sales grew, driven by increased Buffet Units and comparable store sales, despite international unit decline - Pizza Inn total domestic retail sales increased by **8.3%** to **$51.6 million** for the six months ended Dec 24, 2023, compared to the prior year[79](index=79&type=chunk) - The growth was driven by an increase in average Buffet Units open (from **73 to 77**) and a **$3.2 million** increase in comparable store retail sales over the six-month period[79](index=79&type=chunk) Pizza Inn Unit Count Change (Six Months Ended Dec 24, 2023) | Unit Type | Beginning Units | Opened | Closed | Ending Units | | :--- | :--- | :--- | :--- | :--- | | **Domestic** | **123** | **4** | **15** | **112** | | Buffet Units | 77 | 3 | 3 | 77 | | Delco/Express | 41 | 1 | 11 | 31 | | **International** | **34** | **0** | **16** | **18** | | **Total Units** | **157** | **4** | **31** | **130** | [Pie Five Brand Summary](index=21&type=section&id=Pie%20Five%20Brand%20Summary) Pie Five's domestic retail sales decreased due to a reduction in average open units, though comparable store sales remained stable - Pie Five total domestic retail sales decreased by **11.4%** for the three months ended Dec 24, 2023, due to a decrease in average units open from **31 to 25**[83](index=83&type=chunk) - Comparable store retail sales for Pie Five remained relatively stable at **$4.3 million** for the quarter[83](index=83&type=chunk) - The total number of domestic Pie Five units decreased by **3 to 24** during the six months ended December 24, 2023, with management expecting a modest future decrease[84](index=84&type=chunk) [Financial Results](index=22&type=section&id=Financial%20Results) Total revenues remained flat, with mixed performance in franchise revenues and overall reduced expenses contributing to higher income - For the six-month period, Pizza Inn franchise revenues increased **1.1%** to **$4.9 million**, driven by higher domestic royalties and default/closed store revenues[89](index=89&type=chunk) - Pie Five franchise revenues decreased **8.9%** to **$0.9 million** for the six-month period, due to lower domestic royalties, advertising revenues, and supplier incentives[90](index=90&type=chunk) - General and administrative expenses decreased by **4.9%** to **$2.7 million** for the six-month period, primarily due to decreased corporate expenses[91](index=91&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Cash from operations decreased, while cash used in financing activities significantly reduced, with management confident in sufficient liquidity - Cash provided by operating activities was **$0.3 million** for the six-month period, a decrease from **$0.8 million** in the prior year, mainly due to the impact of an employee retention credit collected in the prior year[101](index=101&type=chunk)[105](index=105&type=chunk) - Cash used in financing activities was **$0.3 million**, primarily for taxes paid on vested RSUs, compared to **$5.0 million** in the prior year which was mainly for treasury stock purchases[103](index=103&type=chunk) - Management believes cash on hand and net cash from operations will be sufficient to fund operations for the next 12 months and beyond[104](index=104&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required for a smaller reporting company, and consequently, no information is provided - Not required for a smaller reporting company[115](index=115&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The Company's management, including the principal executive officer and principal financial officer, concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report[117](index=117&type=chunk) - There were no changes in the Company's internal controls over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[117](index=117&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various claims and legal matters, which management believes will not materially affect its financial condition - The Company is subject to various claims and contingencies arising out of the normal course of business, but management believes they will not have a material adverse effect on the Company's financial condition[118](index=118&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section is not required for a smaller reporting company, and consequently, no information is provided - Not required for a smaller reporting company[119](index=119&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds) This item is not applicable to the company for the current reporting period - Not applicable[120](index=120&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists various exhibits filed with the Form 10-Q, including corporate governance documents and required certifications - Lists various exhibits filed with the report, including corporate governance documents, compensation plans, material contracts, and required certifications[126](index=126&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q RAVE RESTAURANT GROUP, INC. (Exact name of registrant as specified in its charter) Missouri 45-3189287 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3551 Plano Parkway The Colony, Texas 75056 (Address of principal executive offices) (Zip Code) (469) 384-5000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: (Ma ...