[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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-K (Mark One) ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended June 25, 2023 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____. Commission File Number 0-12919 RAVE RESTAURANT GROUP, INC. (Exact name of registrant as specified in its charter) Missouri 45-3189287 (State or other ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported increased nine-month revenues to $8.8 million but lower net income, with cash significantly reduced by stock repurchases [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Revenues grew for the quarter and nine-month period, but net income and diluted EPS declined year-over-year Condensed Consolidated Statements of Income (in thousands, except per share amounts) | | Three Months Ended | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | | | **Mar 26, 2023** | **Mar 27, 2022** | **Mar 26, 2023** | **Mar 27, 2022** | | **Revenues** | $2,970 | $2,620 | $8,841 | $7,869 | | **Income Before Taxes** | $438 | $496 | $1,325 | $1,245 | | **Net Income** | $323 | $493 | $978 | $1,235 | | **Diluted EPS** | $0.02 | $0.03 | $0.06 | $0.07 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and shareholders' equity decreased, driven by a reduction in cash due to treasury stock purchases Condensed Consolidated Balance Sheet Highlights (in thousands) | | **Mar 26, 2023** | **Jun 26, 2022** | | :--- | :--- | :--- | | **Cash and cash equivalents** | $3,867 | $7,723 | | **Total current assets** | $5,756 | $10,058 | | **Total assets** | $13,490 | $18,516 | | **Total liabilities** | $3,820 | $5,104 | | **Total shareholders' equity** | $9,670 | $13,412 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved, but a $5.0 million stock repurchase led to a net decrease in cash for the nine-month period Cash Flow Summary for Nine Months Ended (in thousands) | | **Mar 26, 2023** | **Mar 27, 2022** | | :--- | :--- | :--- | | **Cash provided by operating activities** | $1,233 | $525 | | **Cash (used in)/provided by investing activities** | ($80) | $169 | | **Cash used in financing activities** | ($5,009) | ($1,787) | | **Net decrease in cash and cash equivalents** | ($3,856) | ($1,093) | | **Cash and cash equivalents, end of period** | $3,867 | $7,237 | - The primary use of cash in financing activities was the purchase of treasury stock, amounting to **$4.98 million**[20](index=20&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue growth from franchise royalties, an expanded stock repurchase plan, a $1.9 million legal contingency, and segment performance Revenue Breakdown for Nine Months Ended (in thousands) | Revenue Source | Mar 26, 2023 | Mar 27, 2022 | | :--- | :--- | :--- | | Franchise royalties | $3,680 | $3,315 | | Supplier and distributor incentive revenues | $3,260 | $3,051 | | Advertising funds contributions | $1,448 | $1,083 | | **Total Revenues** | **$8,841** | **$7,869** | - On June 28, 2022, the board increased the stock purchase plan authorization by **5,000,000 shares**, bringing the total to 8,016,000 shares[52](index=52&type=chunk) - The company is appealing a **$1.9 million judgment** related to a breach of contract claim from a former CEO, with an unpredictable outcome[57](index=57&type=chunk) Segment Income Before Taxes for Nine Months Ended (in thousands) | Segment | Mar 26, 2023 | Mar 27, 2022 | | :--- | :--- | :--- | | Pizza Inn Franchising | $4,907 | $4,506 | | Pie Five Franchising | $761 | $748 | | Corporate administration and other | ($4,343) | ($4,006) | | **Total Income Before Taxes** | **$1,325** | **$1,245** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth was driven by Pizza Inn's performance, but higher expenses and taxes reduced net income, while a stock repurchase impacted liquidity [Overview and Brand Performance](index=16&type=section&id=Overview%20and%20Brand%20Performance) Pizza Inn's domestic retail sales grew 15.6% in Q3, while Pie Five's sales saw a modest 2.6% increase - For Q3 FY2023, net income was **$0.3 million**, down from $0.5 million year-over-year, primarily due to a **$0.1 million** increase in income tax expense[77](index=77&type=chunk) Pizza Inn Domestic Retail Sales - Q3 (in thousands) | | **Mar 26, 2023** | **Mar 27, 2022** | **% Change** | | :--- | :--- | :--- | :--- | | Total Domestic Retail Sales | $25,689 | $22,228 | 15.6% | | Comparable Store Retail Sales | $25,321 | $21,906 | 15.6% | Pie Five Domestic Retail Sales - Q3 (in thousands) | | **Mar 26, 2023** | **Mar 27, 2022** | **% Change** | | :--- | :--- | :--- | :--- | | Total Domestic Retail Sales | $4,998 | $4,870 | 2.6% | | Comparable Store Retail Sales | $4,756 | $4,399 | 8.1% | [Financial Results and Non-GAAP Measures](index=18&type=section&id=Financial%20Results%20and%20Non-GAAP%20Measures) Q3 revenue increased to $3.0 million, but higher franchise and tax expenses offset gains, keeping Adjusted EBITDA stable at $0.6 million Adjusted EBITDA Reconciliation (in thousands) | | Three Months Ended | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | | | **Mar 26, 2023** | **Mar 27, 2022** | **Mar 26, 2023** | **Mar 27, 2022** | | **Net income** | $323 | $493 | $978 | $1,235 | | **EBITDA** | $492 | $556 | $1,484 | $1,444 | | **Adjusted EBITDA** | $568 | $590 | $1,725 | $1,586 | - Pizza Inn franchise revenues increased to **$2.5 million** for Q3 FY2023 from $2.1 million in the prior year[100](index=100&type=chunk) - Franchise expenses increased to **$1.0 million** for Q3 FY2023 from $0.7 million YoY, mainly due to higher payroll, advertising, and travel costs[103](index=103&type=chunk) - Income tax expense for Q3 FY2023 was **$115 thousand**, a significant increase from $3 thousand in the same period last year[108](index=108&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Cash from operations of $1.2 million was offset by a $5.0 million stock repurchase, but management believes liquidity remains sufficient - Cash provided by operating activities was **$1.2 million** for the nine-month period, compared to $0.5 million in the prior year[112](index=112&type=chunk) - Net cash used in financing activities was **$5.0 million** for the nine-month period, primarily due to stock repurchases[114](index=114&type=chunk) - Management believes current cash on hand combined with net cash provided by operations will be **sufficient to fund operations** for the next 12 months and beyond[115](index=115&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 applicable as the company is a smaller reporting company - Not required for a smaller reporting company[128](index=128&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - Based on an evaluation, the company's principal executive and financial officers concluded that **disclosure controls and procedures were effective**[131](index=131&type=chunk) - There were **no material changes** in the Company's internal controls over financial reporting during the most recent fiscal quarter[131](index=131&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is appealing a $1.9 million judgment from a former CEO's lawsuit, with an unpredictable final outcome - A court entered a **$1.9 million judgment** against the Company in a case with its former CEO[134](index=134&type=chunk) - The Company has **appealed the judgment**, and the ultimate outcome cannot be predicted at this time[134](index=134&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable as the company is a smaller reporting company - Not required for a smaller reporting company[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 3.4 million shares in the last six months, with 2.0 million shares remaining under its expanded repurchase plan - The board amended the stock purchase plan to increase the repurchase authorization to a total of **8,016,000 shares**[137](index=137&type=chunk) - During the six months ended March 26, 2023, the Company repurchased **3,356,977 shares**, leaving 1,997,974 shares available for future repurchase[137](index=137&type=chunk) [Defaults Upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - Not applicable[139](index=139&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[140](index=140&type=chunk) [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) None - None[141](index=141&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including officer certifications and interactive data files - The exhibits include **certifications from the Principal Executive Officer and Principal Financial Officer**[145](index=145&type=chunk)

Washington, D. C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) Commission File Number: 0-12919 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 registere ...

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 (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) | Title of each class | Trading Symbol(s) | Name of each exchange on which | | --- | --- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-K (Mark One) ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended June 26, 2022 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____. Commission File Number 0-12919 RAVE RESTAURANT GROUP, INC. (Exact name of registrant as specified in its charter) Missouri 45-3189287 (State or other ...

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) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Missouri 45-3189287 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 registere ...