Latest news with #BrandonSolano
Yahoo
13-05-2025
- Business
- Yahoo
RAVE Restaurant Stock Rises on Strong Q3 Earnings and Store Reimages
Shares of RAVE Restaurant Group, Inc. RAVE have gained 10.2% since the company announced its third-quarter fiscal 2025 results on May 8. This performance markedly outpaced the S&P 500 Index, which saw a modest 0.5% gain over the same period. Over the past month, RAVE shares surged 25.4%, far exceeding the broader market's 4.3% increase. For the quarter ended March 30, 2025, RAVE reported net income of $0.72 million, representing a 10.4% year-over-year increase from $0.65 million in the prior-year period. On a per-share basis, diluted earnings were $0.05, up from $0.04 in the prior-year period. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Income before taxes rose 11.2% year over year to $0.9 million, driven by improved profitability initiatives. Revenues for the quarter remained flat year-over-year at $2.9 million. Despite stagnant top-line growth, the company reported an adjusted EBITDA of $0.9 million, a 13.2% increase over the same quarter last year, driven by disciplined cost control and operational improvements. Segmentally, Pizza Inn domestic comparable store sales rose 2.5%, while Pie Five saw a 5.6% decline in comparable domestic store sales. These mixed trends underscore divergent brand dynamics within RAVE's portfolio. RAVE Restaurant Group, Inc. price-consensus-eps-surprise-chart | RAVE Restaurant Group, Inc. Quote RAVE Restaurant ended the quarter with 98 domestic and 20 international Pizza Inn units, alongside 19 Pie Five locations. The company repurchased 500,000 shares for $1.2 million during the quarter, indicating confidence in its valuation. Cash and cash equivalents totaled $0.7 million as of March 30, 2025, compared with $2.9 million as of Dec. 29, 2024, while short-term investments rose to $7.9 million from $6 million as of Dec. 29, 2024. RAVE Restaurant's balance sheet remains debt-free, and shareholders' equity rose to $13.3 million from $13.8 million at the end of Dec. 29, 2024. Cumulative net cash from operating activities stood at $2.2 million for the nine-month period compared with $1.3 million in the year-ago period. Operationally, enhancements at Pie Five's make-line resulted in significant throughput gains. Average wait times for customers in the 10th position dropped from 20 minutes to nine minutes, and in-store throughput nearly doubled, according to the vice president of Operations, Zack Viljoen. Several Pie Five locations posted record sales weeks following these changes. CEO Brandon Solano highlighted that the fiscal third quarter marked the company's 20th consecutive quarter of profitability. He credited the performance to both existing strategic initiatives and the launch of a new value-driven promotion at Pizza Inn called 'I$8' (spoken 'I ate at Pizza Inn'). The promotion, offering $8 weekday buffet pricing, was piloted in two stores with more than 20% year-over-year sales growth and is set to expand to 12 additional locations in the fourth quarter. Solano also emphasized continued progress in the company's reimaging program, projecting eight to ten store upgrades by fiscal year-end. Early results show a 7.6% average sales lift and a 56% return on investment from reimaged stores, reinforcing the effectiveness of the initiative. Chief financial officer Jay Rooney noted that the operational gains led to same-store sales records at 19 Pizza Inn and three Pie Five restaurants—the highest since at least 2018. Rooney also pointed to a year-over-year pre-tax income gain of $96,000 for the quarter and $484,000 for the nine-month period. While overall revenue remained unchanged, efficiency gains and improved promotional effectiveness drove better earnings. Cost containment, particularly in franchise and administrative expenses, contributed to profitability. Lower provisions for credit losses and increased interest income also supported net income growth. However, Pie Five's ongoing comparable sales decline reflects brand-specific challenges that partially offset Pizza Inn's resilience. RAVE Restaurant did not provide formal forward-looking guidance. However, management signaled confidence in the continuation of growth initiatives, including the broader rollout of promotional pricing, further reimage projects and continued operational enhancements at Pie Five. These efforts are expected to support comparable store sales growth and margin stability in the coming quarters. During the quarter, RAVE continued to optimize its capital allocation strategy. The share repurchase of half a million shares underscores management's shareholder return focus. Additionally, no acquisitions or divestitures were reported, and RAVE Restaurant maintained a conservative balance sheet with minimal liabilities and healthy levels of retained earnings. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rave Restaurant Group, Inc. (RAVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
08-05-2025
- Business
- Associated Press
RAVE Restaurant Group, Inc. Reports Third Quarter 2025 Results
DALLAS, May 08, 2025 (GLOBE NEWSWIRE) -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the third quarter of fiscal 2025 ended March 30, 2025. Third Quarter Highlights: 'Quarter Three represented our 20th consecutive quarter of profitability as we continue to deliver profitable operating results,' said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc. 'New marketing and existing strategic initiatives delivered both a strong top and bottom line in quarter three,' continued Solano. 'During the third quarter, we tested a new value driven promotion called I$8 at Pizza Inn, or as spoken 'I ate at Pizza Inn'. The offer allows guests to dine at our buffets for $8.00 all day on weekdays. To date, we have introduced the promotion to two stores supported by an aggressive marketing campaign and have seen year-over-year sales increases of over twenty percent. We will roll the promotion accompanied by media out to twelve additional lower to mid volume buffet stores in quarter four.' Solano added, 'We continue to build our pipeline for both new and reimaged stores. We expect to have eight to ten reimages completed by the end of the fiscal year and the reimage results continue to be very positive. Not only is the physical appearance much improved, so are sales. For the reimages completed to date, the average sales lift compared to the rest of the brand is a 7.6% increase with an average return on investment of 56%' 'The operational improvements that doubled the make-line capacity at Pie Five have resulted in sales increases in the third quarter,' reported Vice President of Operations Zack Viljoen, adding 'Average wait times for guests 10th in line have dropped from 20 minutes to just 9, in-store throughput has nearly doubled, and operations are running more consistently with faster, smoother service and multiple stores set sales records during the quarter after implementing the changes.' Chief Financial Officer Jay Rooney added, 'It was great to see the fruits of the team's labor as our initiatives delivered positive movement in same store sales. Nineteen Pizza Inn and three Pie Five restaurants had their highest sales weeks since at least 2018. Also impressive was the bottom-line growth, as we have grown pre-tax income by $96,000 for the quarter and $484,000 for the year to date from the same periods in the prior year.' Non-GAAP Financial Measures The Company's financial statements are prepared in accordance with United States generally accepted accounting principles ('GAAP'). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for its financial statements prepared in accordance with generally accepted accounting principles. The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes. 'EBITDA' represents earnings before interest, taxes, depreciation and amortization. 'Adjusted EBITDA' represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying financial statements. Note Regarding Forward Looking Statements Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, the effectiveness of our cost cutting measures, the timing to complete as well as the continued returns on our reimaging initiatives, the strength of our development pipeline, as well as future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved. About RAVE Restaurant Group, Inc. Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] has inspired restaurant innovation and countless customer smiles with its trailblazing pizza concepts. The Company franchises, licenses and supplies Pie Five and Pizza Inn restaurants operating domestically and internationally. The Pizza Inn experience is unlike your typical buffet. Since 1958, Pizza Inn's house-made dough, house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce combined with friendly service solidified the brand to become America's favorite hometown pizza place. These, in addition to its small-town vibe, are the hallmarks of Pizza Inn restaurants. In 2011, RAVE introduced Pie Five Pizza, pioneering a fast-casual pizza brand that transformed the classic pizzeria into a concept offering personalization, sophisticated ingredients and speed. Pie Five's craft pizzas are baked fresh daily and feature house-made ingredients, creative recipes and craveable crust creations. For more information, visit and follow on Instagram @pizzainn and @piefivepizza. Contact: Investor Relations RAVE Restaurant Group, Inc. 469-384-5000
