Rave Restaurant Stock Price, News & Analysis

RAVE Restaurant Group reported a net income of $102,000 for Q2 FY2021, up from $14,000 in the same period last year. However, total revenue fell by $0.7 million to $2.1 million. Pizza Inn saw an 18% drop in comparable store sales, while Pie Five experienced a 16% decline. Despite these challenges, cash and cash equivalents increased by $3.3 million to $6.3 million. The company is launching innovative products, including Panzano pan pizza, and has implemented cost control measures, resulting in profit amidst the ongoing pandemic.

Pizza Inn, a subsidiary of RAVE Restaurant Group, has voiced concerns over election integrity following the recent Presidential election. CEO Brandon Solano emphasized the need for transparency and security in elections, advocating for a 10-day audit of the vote. The company proposed several reforms, including requiring voter ID, eliminating electronic voting machines, and restricting mail-in ballots to uphold election integrity. Despite potential backlash, Pizza Inn believes these measures are vital for restoring faith in the electoral process, emphasizing the importance of democracy and civic engagement.

RAVE Restaurant Group reported a net income of $76,000 for Q1 fiscal 2021, down from $237,000 last year. Total revenue fell to $1.9 million, a $1 million decrease year-over-year. Comparable store sales for Pizza Inn and Pie Five dropped 22% and 23%, respectively. Cash reserves decreased to $2.9 million. Despite the challenges posed by the pandemic, management is implementing strategies like the Contactless Buffet To-Go to boost traffic. They reported an income before taxes of $78,000, indicating effective cost control amidst declining revenues.

Pizza Inn has reintroduced its popular Contactless Buffet To-Go options in response to high demand. This initiative features three new meals designed to serve 2 to 6 people, allowing for customization with up to four different pizza flavors. The new offerings include Jojo's Party Pack ($12.99), Jojo's Family Feast ($25.99), and Jojo's Ultimate Variety ($32.99). The chain emphasizes enhanced safety measures in its dining rooms while expanding its delivery and carryout services. Founded in 1958, Pizza Inn is part of RAVE Restaurant Group and operates over 200 locations.

On October 6, 2020, RAVE Restaurant Group announced the hiring of Darren Webb as director of development and Dion Firooznia as franchise business consultant, aimed at enhancing franchise operations for Pizza Inn and Pie Five Pizza.

These additions are part of RAVE's strategy to strengthen its presence, particularly in the Carolinas, a key expansion area. Webb brings 15 years of experience in regional development, while Firooznia adds 26 years of experience in franchise operations. RAVE also offers a multi-unit incentive surpassing $1 million for franchisees opening five or more locations.

RAVE Restaurant Group reported mixed financial results for Q4 and fiscal year 2020. Total revenue for Q4 decreased by $1.5 million to $1.6 million, with Pizza Inn and Pie Five comparable store sales down 39% and 37.9%, respectively. However, net income increased to $31,000 from a loss of $0.8 million in Q4 2019. Fiscal 2020 saw total revenue decrease 18.6% to $10 million and a net loss of $4.2 million, down from $0.7 million the previous year. Cash reserves rose by $1.4 million, and operational adjustments are being made to stimulate recovery amid the COVID-19 impacts.

Pizza Inn has announced a partnership with RetailStack as its official point of sale provider. This decision, approved unanimously by Pizza Inn's Franchise Leadership Council, aims to enhance operational efficiency. RetailStack provides a flexible POS platform that supports digital transactions and integrates with third-party delivery services, reducing labor costs. Pizza Inn, part of RAVE Restaurant Group, continues to prioritize customer safety with its New Right-Way Buffet while expanding its technological capabilities for franchisees.

Pie Five Pizza opened its first location in Oregon on July 20, 2020, located at 2333 NW Kings Blvd. in Corvallis. The franchise aims to serve handcrafted personal pizzas made with fresh ingredients, and it will operate daily from 11 a.m. to 9 p.m. Franchisee Ravi Prasad expressed excitement about contributing to the community and emphasized their commitment to health and safety protocols. In a pre-opening event on July 18, proceeds will be donated to the Boys & Girls Club of Corvallis. Pie Five is part of Rave Restaurant Group and is noted for its fast-casual pizza experience.

RAVE Restaurant Group reported Q3 fiscal 2020 results, revealing a net loss of $4.5 million, compared to a loss of $0.3 million in the same period last year. Total revenue decreased by $0.4 million to $2.7 million, driven by a 7.8% decline in Pizza Inn comparable store sales and a 21.4% drop for Pie Five. The cash reserves also fell by $0.4 million to $1.5 million. The company took measures to reduce expenses, including staff furloughs and pay cuts, in response to COVID-19 challenges.