Latest news with #PizzaInn
Yahoo
3 days ago
- Business
- Yahoo
RAVE Upgraded to Outperform Amid Profitability Streak & Capital Strength
RAVE Restaurant Group, Inc. RAVE has been upgraded to an 'Outperform' rating from 'Neutral,' reflecting durable profitability, strengthened capital positioning and operational initiatives gaining traction. With 20 consecutive quarters of positive net income, RAVE is demonstrating increasing earnings resilience. Despite modest top-line growth and ongoing brand bifurcation, the company's capital-light model, reinvestment discipline and brand turnaround momentum present an attractive risk/reward setup under current market conditions. RAVE Restaurant's long streak of profitability continued into the third quarter of fiscal 2025, with net income rising 10.4% year over year to $0.72 million, and income before taxes increasing 11.2% to $0.9 million. Adjusted EBITDA climbed 13.2% to $0.9 million, despite total revenue remaining flat at $2.9 million. This margin-driven performance illustrates strong operational leverage, particularly impressive amid broader restaurant industry cost inflation. RAVE's efficient franchise-focused structure allows it to expand earnings with minimal incremental revenue growth, supported by an 8.3% year-to-date decline in franchise expenses. RAVE's flagship brand, Pizza Inn, showed resilience, posting a 2.5% increase in domestic comparable store sales during the fiscal third quarter. The ongoing 'I$8 at Pizza Inn' buffet promotion generated more than 20% sales lifts at pilot locations, and store reimaging efforts have yielded a 7.6% average sales increase and a 56% return on investment. Although domestic unit count fell from 105 to 98 year to date, the brand's traffic, pricing and visual refresh strategies are positioning it well for stable performance and selective expansion. Despite a 5.6% decline in comparable store sales and a 28.2% drop in total domestic retail sales for Pie Five year over year, recent restructuring is beginning to yield improvements. Enhanced throughput from doubling make-line capacity has led to faster service and multiple store-level sales records. While average units in operation dropped from 24 to 19 in third-quarter fiscal 2025, efficiencies and performance stabilization in core locations suggest a potential bottoming in the brand's performance. RAVE continues to outperform peers on cost containment. Total operating expenses declined 4.4% year over year in third-quarter fiscal 2025, despite revenue flatlining. General and administrative expenses rose 2.4% year over year, while franchise expenses fell 5.4%, reflecting disciplined cost execution amid inflationary pressures. Supplier incentives and a lean corporate structure support a durable margin profile and reinforce the strength of the asset-light model. While the upgrade is warranted, investors should remain mindful of RAVE Restaurant's revenue mix. In third-quarter fiscal 2025, supplier and distributor incentive revenues totaled $1.23 million, nearly equaling franchise royalty income of $1.16 million. This reliance on indirect, incentive-based income rather than recurring royalties highlights a potential vulnerability, particularly if distribution agreements shift or retail sales soften. Additionally, franchise license fees declined 44.1% year over year, indicating tepid new unit growth momentum. Despite consistent profitability, RAVE's small operating scale remains a structural constraint. In third-quarter fiscal 2025, consolidated revenue was flat year over year at $2.9 million, with essentially no top-line growth despite cost efficiencies. With only 117 domestic units across both brands and modest store development, RAVE Restaurant's limited geographic footprint and low absolute revenue base restrict its ability to leverage broader economies of scale. Unless store openings materially accelerate or Pie Five's contribution rebounds meaningfully, long-term earnings growth may remain tethered to incremental cost-cutting rather than revenue expansion. RAVE Restaurant's upgrade to 'Outperform' reflects growing confidence in the company's ability to sustain profitability, expand margins and drive long-term shareholder value through capital efficiency and strategic execution. While brand-level headwinds remain — particularly for Pie Five and net unit growth — the combination of robust balance sheet strength, operational momentum at Pizza Inn and upside from digital and menu innovation offers a compelling narrative. With a debt-free structure, rising cash flows and return-focused management, RAVE is emerging as a niche small-cap outperformer in the franchised restaurant space. 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 Sign in to access your portfolio
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
Yahoo
21-02-2025
- Business
- Yahoo
US Penny Stocks To Consider In February 2025
As the U.S. stock market faces a challenging period, with major indices like the Dow Jones Industrial Average on track for significant weekly declines, investors are increasingly looking for opportunities that might buck broader trends. The term "penny stocks" may seem outdated, but these smaller or newer companies can still offer intriguing possibilities when they exhibit strong financial health. In this article, we'll explore several penny stocks that stand out due to their financial strength and potential for growth in today's volatile market landscape. Name Share Price Market Cap Financial Health Rating QuantaSing Group (NasdaqGM:QSG) $3.08 $132.89M ★★★★★★ Imperial Petroleum (NasdaqCM:IMPP) $2.78 $85.54M ★★★★★★ Permianville Royalty Trust (NYSE:PVL) $1.44 $47.85M ★★★★★★ Golden Growers Cooperative (OTCPK:GGRO.U) $4.50 $67.38M ★★★★★★ ZTEST Electronics (OTCPK:ZTST.F) $0.2695 $9.57M ★★★★★★ PHX Minerals (NYSE:PHX) $4.20 $156.67M ★★★★★☆ Smith Micro Software (NasdaqCM:SMSI) $1.43 $24.83M ★★★★★☆ CBAK Energy Technology (NasdaqCM:CBAT) $0.8696 $79.96M ★★★★★☆ BAB (OTCPK:BABB) $0.83 $6.31M ★★★★★☆ Lifetime Brands (NasdaqGS:LCUT) $4.95 $110.78M ★★★★★☆ Click here to see the full list of 713 stocks from our US Penny Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Rave Restaurant Group, Inc. operates and franchises pizza buffet, delivery/carry-out, express restaurants, and ghost kitchens under the Pizza Inn and Pie Five trademarks in the United States and internationally, with a market cap of $38.40 million. Operations: Rave Restaurant Group generates revenue primarily through its Pizza Inn Franchising segment with $10.68 million and Pie Five Franchising segment with $1.46 million. Market Cap: $38.4M Rave Restaurant Group, with a market cap of US$38.40 million, has shown resilience in the penny stock realm by maintaining profitability and demonstrating revenue growth. Recent earnings for the second quarter ended December 29, 2024, reported sales of US$2.87 million and net income of US$0.607 million. The company benefits from strong short-term asset coverage over liabilities and operates debt-free, enhancing its financial stability. However, while Rave's management team lacks experience with an average tenure under one year, its board is seasoned with an average tenure of 19.3 years, offering governance stability amidst operational changes. Navigate through the intricacies of Rave Restaurant Group with our comprehensive balance sheet health report here. Gain insights into Rave Restaurant Group's historical outcomes by reviewing our past performance report. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Bowen Acquisition Corp, with a market cap of $37.86 million, does not have significant operations. Operations: Bowen Acquisition Corp does not report any revenue segments. Market Cap: $37.86M Bowen Acquisition Corp, with a market cap of US$37.86 million, is pre-revenue and operates without significant debt, which can be appealing in the penny stock landscape. The company has recently secured US$5 million through a private placement with Qianzhi Group Holding (Cayman) Limited. Despite its lack of meaningful operations or revenue segments, Bowen's short-term assets exceed its short-term liabilities. However, its long-term liabilities remain uncovered by current assets. The company's stock has experienced high volatility recently and management experience data is insufficient to assess leadership stability fully. Unlock comprehensive insights into our analysis of Bowen Acquisition stock in this financial health report. Assess Bowen Acquisition's previous results with our detailed historical performance reports. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Pixelworks, Inc. develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets across the United States, Japan, China, Taiwan, Korea, and Europe with a market cap of approximately $50.43 million. Operations: The company's revenue primarily comes from the design, development, marketing, and sale of IC solutions, totaling $43.21 million. Market Cap: $50.43M Pixelworks, Inc. operates without debt and maintains a cash runway exceeding one year, but remains unprofitable with increasing losses over the past five years. Recent earnings reports show declining revenue, with Q4 2024 sales at US$9.09 million compared to US$20.07 million the previous year and an annual net loss of US$28.72 million, up from US$26.18 million in 2023. Despite its challenges, Pixelworks' short-term assets cover both short- and long-term liabilities comfortably, while analysts anticipate significant stock price growth potential of 90.4%, suggesting possible investor interest in this volatile penny stock environment. Click here and access our complete financial health analysis report to understand the dynamics of Pixelworks. Learn about Pixelworks' future growth trajectory here. Unlock our comprehensive list of 713 US Penny Stocks by clicking here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Jump on the AI train with fast growing tech companies forging a new era of innovation. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqCM:RAVE NasdaqGM:BOWN and NasdaqGM:PXLW. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
