Latest news with #RAVE
Yahoo
02-06-2025
- 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
Washington Post
08-05-2025
- Business
- Washington Post
Rave Restaurant Group: Fiscal Q3 Earnings Snapshot
THE COLONY, Texas — THE COLONY, Texas — Rave Restaurant Group Inc. (RAVE) on Thursday reported earnings of $722,000 in its fiscal third quarter. On a per-share basis, the The Colony, Texas-based company said it had profit of 5 cents. The pizza chain operator posted revenue of $3 million in the period.
Yahoo
10-04-2025
- Climate
- Yahoo
National Weather Service shares how alerts are sent to East Texans
TYLER, Texas (KETK)– The National Weather Service in Fort Worth and Shreveport issued dozens of alerts on Friday as severe storms ripped through East Texas. A team of trained forecasters work together to identify key ingredients in the atmosphere that would classify a severe thunderstorm watch/warning, flash flooding and tornado watch/warning. 'When the warning is issued, that's when we want you to take action, which usually means seek shelter and then seek additional information,' meteorologist with the National Weather Service Fort Worth office Jennifer Dunn said. City of Lone Star warns citizens of storm recovery scams Dunn said the emergency alert notification through the NWS is sent mostly by email to local TV, radio stations and the Federal Emergency Management Agency (FEMA). 'When the text editor is launched, the system is also smart enough to put an initial guess of where that polygon box or that warning box should be. We hit send and it sends out the warning through multiple dissemination methods at this time,' Dunn said. FEMA then sends their alerts to county emergency management offices. 'The wireless emergency alerts through FEMA are using the weather service's warnings to disseminate and alert all of mobile devices within the warning polygon. They don't necessarily go off for every warning that we issue, but they go off for the higher end,' Dunn said. East Texas counties use the alert system called RAVE or 911 alerts, funded by the East Texas Council of Governments (ETCOG). ETCOG has funded the program for 12 years from an $80,000 Homeland Security grant with their public safety division. People who live in the county are not required to sign up, but experts highly encourage it. 'Relying on the tornado sirens or the outdoor warning sirens should be essentially your last line of defense when it comes to knowing that there is bad weather moving into the area, especially with the technology that we have today,' Dunn said. Bowie, Cass, Morris counties declare local disaster after severe weather The National Weather Service encourages people to have several alert sources and to have multiple alert sources and have a go-bag ready just in case. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
