Rave Restaurant (US:RAVE)2025-11-06 14:01Sales Performance - Total domestic retail sales for Pizza Inn increased by $2.6 million, or 10.2%, for the three months ended September 28, 2025, compared to the same period of the prior fiscal year [82]. - Comparable store retail sales for Pizza Inn increased by $2.0 million, or 8.1%, for the three months ended September 28, 2025, compared to the same period of the prior fiscal year [82]. - Total domestic retail sales for Pie Five decreased by $0.6 million, or 18.7%, for the three months ended September 28, 2025, compared to the same period of the prior fiscal year [85]. - Pizza Inn franchise revenues increased by $0.3 million to $3.0 million, representing a 9.4% increase driven by higher supplier and distributor incentives and domestic royalties due to increased system-wide sales [91]. - Pie Five franchise revenues decreased by $0.1 million to $0.2 million, a 22.2% decrease attributed to lower domestic royalties and supplier incentives from reduced system-wide sales due to unit closures [92]. Financial Performance - Adjusted EBITDA for the fiscal quarter ended September 28, 2025, increased by $0.1 million to $830,000, compared to $720,000 for the same period of the prior fiscal year [81]. - EBITDA for the fiscal quarter ended September 28, 2025, was $802,000, compared to $656,000 for the same period of the prior fiscal year [81]. - Total revenues for the three-month period ended September 28, 2025, were $3.2 million, a 5.3% increase from $3.1 million in the same period of the prior fiscal year [90]. - Basic net income per share increased by $0.01 to $0.05 per share, with net income of $0.6 million for the three months ended September 28, 2025, compared to $0.5 million in the prior year [101]. - Cash provided by operating activities was $0.6 million, an increase from $0.5 million in the same period last year, driven by increased net income [104]. - Total income tax expense increased to $206 thousand from $169 thousand, driven by higher federal taxes due to increased taxable income [99]. Operational Metrics - Average Buffet Units open increased from 78 to 79 during the three months ended September 28, 2025 [82]. - The total number of domestic Pizza Inn units remained stable at 96 during the three months ended September 28, 2025 [84]. - Total domestic Pie Five units remained stable at 17 during the three months ended September 28, 2025 [87]. - The number of international Pizza Inn units decreased by two units to 20 during the three months ended September 28, 2025 [84]. - The company anticipates a modest increase in both domestic and international Pizza Inn units in future periods [84]. Expenses and Cash Flow - Total general and administrative expenses remained stable at $1.4 million, with a 3.0% decrease driven by lower legal fees, offset by increased salaries [93]. - Cash used in investing activities was $2.1 million, up from $2.0 million in the prior year, primarily due to increased activity related to short-term investments [105]. - Interest income increased by $9 thousand to $91 thousand, primarily due to higher interest received on U.S. Treasury bills [96]. - The company believes that cash on hand combined with net cash provided by operations will be sufficient to fund operations for the next 12 months and beyond [107].