RAVE Restaurant Group, Inc. Reports First Quarter 2025 Results

Core Viewpoint - RAVE Restaurant Group, Inc. reported a strong financial performance for the first quarter of fiscal 2025, achieving net income growth and maintaining profitability for the 18th consecutive quarter, while also focusing on innovation and growth initiatives to drive future sales [2][3]. Financial Performance - The company recorded a net income of $0.5 million for Q1 fiscal 2025, a 36.3% increase from the same period last year [2]. - Income before taxes rose by $0.2 million to $0.7 million compared to the prior year [2]. - Total revenue remained stable at $3.1 million, unchanged from the same period last year [2]. - Adjusted EBITDA increased by $0.1 million to $0.7 million compared to Q1 fiscal 2024 [2]. - On a fully diluted basis, net income per share increased by 33% to $0.04, up from $0.03 in the same period last year [2]. Sales Performance - Pizza Inn domestic comparable store retail sales decreased by 2.1% in Q1 fiscal 2025 compared to the same period last year [2]. - Pie Five domestic comparable store retail sales saw a larger decline of 8.7% in the same timeframe [2]. Cash Position - Cash and cash equivalents were reported at $1.4 million as of September 29, 2024 [2]. - Short-term investments totaled $7.1 million on the same date [2]. Operational Developments - The company signed a four-unit development agreement, bringing the total domestic sites contracted for development to 25 [3]. - A new online ordering platform was introduced for Pizza Inn, resulting in a double-digit increase in online sales [3]. - The company plans to introduce new dessert innovations and main course offerings in the upcoming months to enhance customer engagement and sales [3]. Cost Management - General and administrative expenses were lower than the previous year due to a reorganized corporate structure, contributing to an increase in earnings per share [3]. - The company continues to operate at a cash surplus, with a strong balance sheet supported by $8.4 million in cash and liquid short-term investments [3].