Rave Restaurant Group Reports 5.4% Revenue Increase and Higher Net Income for Quarter Ended September 28, 2025

Rave Restaurant Group, Inc. reported a revenue increase of 5.4% for the three months ended September 28, 2025, achieving $3.2 million compared to $3.1 million in the same period last year. The company's net income rose to $645,000, or $0.05 per share, up from $526,000, or $0.04 per share, in the prior year. This growth in profitability was attributed to higher franchise royalties and supplier incentives, which were bolstered by increased system-wide sales across its brands, particularly Pizza Inn.

In terms of operational performance, Rave's franchise revenues from Pizza Inn increased by 9.4% to $2.975 million, driven by a rise in supplier and distributor incentives and domestic royalties. Conversely, Pie Five franchise revenues decreased by 22.2% to $238,000, primarily due to lower system-wide sales resulting from unit closures. The total number of domestic Pizza Inn units remained stable at 96, while Pie Five units decreased to 17 from 20 in the previous year.

The company’s total costs and expenses for the quarter were $2.461 million, slightly up from $2.441 million in the prior year. General and administrative expenses decreased marginally to $1.378 million, while franchise expenses increased to $1.037 million, reflecting higher advertising fees. The provision for credit losses was $4,000, a decrease from recoveries of $17,000 in the same quarter last year, indicating a more cautious approach to managing franchisee receivables.

Rave Restaurant Group's balance sheet showed total assets of $17.005 million as of September 28, 2025, an increase from $16.557 million at the end of the previous quarter. The company reported cash and cash equivalents of $1.397 million, down from $2.859 million, while short-term investments rose to $9.159 million from $7.024 million. The company’s outlook remains cautiously optimistic, with management anticipating modest growth in both domestic and international franchise units in the coming periods, supported by strategic initiatives to enhance brand performance and customer engagement.