Rave Restaurant (RAVE) - 2026 Q2 - Quarterly Report

Sales Performance - Total domestic retail sales for Pizza Inn increased by $1.1 million, or 4.1%, for the three months ended December 28, 2025 compared to the same period of the prior year [83]. - Total domestic retail sales for Pizza Inn increased by $3.6 million, or 7.1%, for the six months ended December 28, 2025 compared to the same period of the prior year [84]. - Comparable store retail sales for Pizza Inn increased by $0.6 million, or 2.5%, for the three months ended December 28, 2025 compared to the same period of the prior fiscal year [83]. - Pie Five total domestic retail sales decreased by $0.4 million, or 16.3%, for the three months ended December 28, 2025 compared to the same period of the prior year [88]. - Pie Five total domestic retail sales decreased by $1.0 million, or 17.6%, for the six months ended December 28, 2025 compared to the same period of the prior year [89]. - Average units open decreased from 18 to 16, contributing to a comparable store retail sales decrease of $0.3 million, or 5.7% for the same six-month period [89]. Unit Count - The number of domestic Pizza Inn units increased by one during the three and six months ended December 28, 2025, totaling 97 units [85]. - The number of international Pizza Inn units decreased by one during the three months ended December 28, 2025, totaling 19 units [87]. - Average Buffet Units open in the period increased from 78 to 80 for the three months ended December 28, 2025 [83]. - The average number of Pie Five units open in the period decreased from 18 to 16 for the three months ended December 28, 2025 [88]. Financial Performance - Adjusted EBITDA for the fiscal quarter ended December 28, 2025 increased by $0.1 million compared to the same period of the prior fiscal year, reaching $852,000 [79]. - EBITDA for the fiscal quarter ended December 28, 2025 was $793,000, an increase from $717,000 in the same period of the prior year [81]. - Total revenues for the three-month period ended December 28, 2025 were $3.0 million, an increase from $2.9 million in the prior fiscal year [95]. - Total revenues for the six-month period ended December 28, 2025 were $6.3 million, compared to $5.9 million in the same period of the prior fiscal year [95]. - Pizza Inn franchise revenues increased by $0.3 million to $2.8 million for the three-month period ended December 28, 2025, a 10.5% increase driven by higher system-wide retail sales [96]. - Pie Five franchise revenues decreased by $0.1 million to $0.2 million for the three-month period ended December 28, 2025, a 21.7% decrease due to lower system-wide retail sales [98]. Expenses - Total general and administrative expenses increased by $0.2 million for the three-month period ended December 28, 2025, a 15.6% increase driven by higher salaries [99]. - Total franchise expenses decreased by $0.1 million to $0.7 million for the three-month period ended December 28, 2025, an 11.7% decrease due to lower salaries related to franchise operations [100]. - Depreciation and amortization expense decreased by $11 thousand to $42 thousand for the three-month period ended December 28, 2025, primarily due to lower depreciation of equipment [102]. Income and Taxes - Total income tax expense for the three months ended December 28, 2025, was $205 thousand, up from $144 thousand in the prior year, and for the six months ended December 28, 2025, it was $411 thousand, compared to $313 thousand in the prior year [105]. - Basic net income per share remained stable at $0.04 for the three months ended December 28, 2025, with net income of $0.6 million on revenues of $3.0 million, compared to $2.9 million in the prior year [107]. - Basic net income per share increased by $0.01 to $0.09 for the six months ended December 28, 2025, with net income of $1.3 million on revenues of $6.3 million, compared to $5.9 million in the prior year [108]. Cash Flow - Cash provided by operating activities was $0.9 million for the six months ended December 28, 2025, down from $1.2 million in the prior year, primarily due to increased prepaid expenses [111]. - Cash used in investing activities was $3.1 million for the six months ended December 28, 2025, compared to $1.1 million in the prior year, primarily due to decreased maturities of U.S. Treasury bills [112]. - Net cash used in financing activities was zero for the six months ended December 28, 2025, compared to $0.2 million in the prior year, which was primarily attributable to taxes paid on vested RSUs [113]. - Management believes that cash and short-term investments on hand, combined with net cash provided by operations, will be sufficient to fund operations for the next 12 months and beyond [114].