Rave Restaurant (US:RAVE) ZACKSยท2025-10-03 15:05Core Insights - Rave Restaurant Group, Inc. (RAVE) shares have decreased by 9.4% since the earnings report for the quarter ended June 29, 2025, contrasting with a 1% increase in the S&P 500 Index during the same period [1] - The company reported a fourth-quarter fiscal 2025 net income of $0.8 million, a 3.6% decline year over year, with total revenues falling 6% to $3.2 million [2] - For the full fiscal year, net income rose 9.3% to $2.7 million, while revenues decreased by 0.9% to $12 million [3] Financial Performance - RAVE's fourth-quarter diluted earnings per share (EPS) remained flat at $0.06, while adjusted EBITDA decreased by 7.3% to $1.1 million [2] - Annual adjusted EBITDA increased by 13.5% to $3.6 million in fiscal 2025, indicating operational strength despite challenging sales conditions [5] - Operating efficiency led to a 17.1% rise in annual pre-tax income to $3.6 million, reflecting improved profitability and expense control [4] Segment Performance - Pizza Inn's domestic comparable store sales grew by 6.3%, while Pie Five experienced a 7.2% decline in the fourth quarter [2] - For the full fiscal year, Pizza Inn comparable sales increased by 1.9%, whereas Pie Five sales contracted by 8.4% [3] Management Commentary - CEO Brandon Solano noted the success of the "$8 value promotion" at Pizza Inn, which resulted in a 30.6% sales lift and a 34.7% increase in traffic during the last eight weeks of the quarter [6] - CFO Jay Rooney attributed the 6.3% comparable store sales growth to cost discipline and strong performance at Pizza Inn [7] Growth Initiatives - RAVE did not provide formal financial guidance for fiscal 2026 but indicated optimism about growth through promotional expansion, domestic reimaging, and international openings [9] - The company opened new Pizza Inn locations in North Carolina and Oklahoma and launched its first unit in Egypt, highlighting its commitment to international growth [10]