Rave Restaurant Group Reports Revenue Increase to $2.87 Million in Q2 FY 2025

Rave Restaurant Group, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a revenue increase to $2.87 million for the three months ended December 29, 2024, compared to $2.75 million for the same period in the previous year. For the six-month period, revenues rose to $5.92 million from $5.83 million year-over-year. The company achieved a net income of $607,000, or $0.04 per share, for the latest quarter, consistent with the prior year’s earnings. Year-to-date net income also increased to $1.13 million, up from $939,000, resulting in a basic earnings per share of $0.08, compared to $0.07 in the previous year.

The financial performance reflects a notable shift in franchise revenues, particularly from the Pizza Inn brand, which saw a 11.9% increase in franchise revenues to $2.54 million for the quarter, driven by higher supplier and distributor incentives. Conversely, Pie Five franchise revenues decreased by 30.2% to $300,000, attributed to a decline in domestic royalties and a reduction in the number of operating units. The overall increase in revenues was tempered by a slight decrease in franchise expenses, which totaled $829,000 for the quarter, down from $844,000 in the prior year.

Operationally, Rave Restaurant Group reported a total of 122 domestic franchised and licensed units for Pizza Inn and 20 for Pie Five as of December 29, 2024. The company noted a stable unit count for Pie Five, while Pizza Inn experienced a net decrease of three units over the six-month period. The company’s total assets increased to $16.12 million, up from $15.82 million, with cash and cash equivalents remaining relatively stable at $2.87 million. The company’s employee headcount remained unchanged, reflecting its focus on maintaining operational efficiency.

Looking ahead, Rave Restaurant Group expressed optimism regarding its growth strategy, particularly in expanding its franchise network and enhancing product offerings. The company anticipates modest growth in both domestic and international unit counts, supported by ongoing marketing initiatives and franchisee support programs. Management believes that the current cash position, combined with operating cash flows, will be sufficient to fund operations for the next 12 months. The company remains committed to improving its market share and enhancing customer engagement through strategic initiatives in the coming quarters.