Rave Restaurant (RAVE) - 2025 Q1 - Quarterly Results

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]