Rave Restaurant (US:RAVE)2019-05-11 02:17Financial Data and Key Metrics Changes - Total component revenue increased by 15.2% to $3.1 million in Q3 2019 compared to $2.7 million in the same period of the prior year [20] - Year-to-date total consolidated revenue decreased to $9.3 million from $12.3 million in the same period of the prior year, primarily due to a reduction in company-owned Pie Five units [21] - The company reported a net loss of $0.3 million for Q3 2019, an improvement from a net loss of $0.5 million in the same period of the prior year [22] - Year-to-date, the company reported net income of $0.1 million compared to a net loss of $1.4 million in the same period of the prior year [23] - Adjusted EBITDA improved to $0.4 million for Q3 2019 and $1.4 million year-to-date, driven by increased franchise revenues and decreased corporate expenses [25] Business Line Data and Key Metrics Changes - Pizza Inn achieved a 3.3% increase in comparable store sales for Q3 2019 and a 2.8% increase year-to-date, marking its ninth consecutive quarter of same-store sales growth [12][11] - Pie Five experienced a decline in comparable store sales of 4.4% for Q3 2019 and 3.2% year-to-date, with total retail sales decreasing by 18% and 11% respectively [14] - The company opened one new Pie Five unit, bringing the total to 156 domestic units [18] Market Data and Key Metrics Changes - The company noted that online ordering has seen double-digit sales growth for three consecutive years, contributing to overall sales growth [14] - The introduction of new menu items at Pie Five, such as calzones and shareable pizzas, has led to increased customer traffic in many locations [15] Company Strategy and Development Direction - The company is focusing on international operations and development resources to accelerate growth for Pizza Inn and Pie Five [7] - The Goldilocks prototype is being implemented to improve unit economics and address rising real estate costs and labor pressures [16] - Management is working closely with franchisees to develop customized action plans to address specific challenges [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive trends in retail sales and profitability, indicating a strong future for the company [32] - The company is optimistic about the investments made in technology and improving the restaurant experience for guests [32] Other Important Information - The company adopted new revenue recognition standards, which impacted shareholders' equity, reducing it by a net of $1.9 million [29] - Cash and cash equivalents increased to $1.9 million as of March 24, 2019, reflecting improved cash flow from operating activities [26] Q&A Session Summary - The Q&A session did not contain any specific questions or answers, as the conference call concluded without further inquiries [34][37]