Rave Restaurant Group Reports Fiscal Year 2025 Results with $12M Revenue and $2.7M Net Income

Rave Restaurant Group, Inc. reported its financial results for the fiscal year ending June 29, 2025, revealing total revenues of $12.0 million, a slight decrease from $12.2 million in the previous fiscal year. The company achieved a net income of $2.7 million, up from $2.5 million in fiscal 2024, resulting in an increase in basic and diluted earnings per share to $0.19, compared to $0.17 in the prior year. The increase in net income was attributed to improved operational efficiencies and a reduction in total costs and expenses, which fell to $8.4 million from $9.1 million.

In terms of operational performance, Rave's Pizza Inn segment saw a 1.9% increase in total domestic retail sales, amounting to $104.7 million, primarily driven by an increase in the number of Buffet Units, which rose from 76 to 77. However, the Pie Five segment experienced a significant decline, with total domestic retail sales dropping by 33.2% to $11.3 million, largely due to a decrease in the average number of units open from 25 to 20. The company closed three Pie Five units during the fiscal year, contributing to a net decrease of nine units across its domestic Pizza Inn locations.

Strategically, Rave Restaurant Group has focused on enhancing its franchise operations. The Pizza Inn franchise revenues increased by 4.8% to $10.8 million, driven by higher advertising fund contributions and supplier incentives. Conversely, Pie Five franchise revenues decreased by 30.7% to $1.2 million, reflecting lower system-wide sales. The company anticipates modest growth in both domestic and international unit counts in the future, despite the recent closures.

The company reported a total of 118 units as of June 29, 2025, comprising 96 domestic units and 22 international units. The international segment saw a decrease of two units, primarily due to the closure of eight units in Oman following non-renewal of franchise agreements. Rave's total employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, Rave Restaurant Group expects to fund its operations and planned capital expenditures primarily through cash on hand and operating cash flow. The company believes it has sufficient liquidity to meet its cash requirements for the upcoming fiscal year. Management remains optimistic about future growth opportunities, particularly in expanding its franchise network and enhancing operational efficiencies across its brands.