Rave Restaurant Group (RAVE) Q1 2025 earnings summary

Executive summary

• Net income for the quarter ended September 29, 2024 was $526,000, up 36.3% year-over-year, with EPS rising to $0.04 from $0.03.

• Achieved 18th consecutive quarter of profitability.

• Total revenues were $3.1 million, nearly flat compared to the prior year, as increases in supplier and distributor incentives offset declines in domestic royalties.

• Adjusted EBITDA increased to $720,000 from $586,000 year-over-year, reflecting improved operating performance.

• Signed a new four-unit development agreement, bringing total contracted domestic sites to 25.

Financial highlights

• Revenue for the quarter was $3.1 million, compared to $3.09 million in the same quarter last year.

• Net income rose to $526,000 from $386,000 year-over-year.

• Basic and diluted EPS were $0.04, up from $0.03 in the prior year.

• Cash and cash equivalents at quarter-end were $1.4 million, with $7.1 million in short-term investments.

• Cash provided by operating activities was $520,000, while $2.0 million was used in investing activities, mainly for treasury bills.

Outlook and guidance

• Management expects modest increases in both domestic and international Pizza Inn units in future periods.

• Pie Five units are anticipated to decrease modestly in future periods.

• Management expects continued financial success, driven by innovation, new store openings, and operational improvements.

• Anticipates further dessert and main course product launches and enhanced throughput at Pie Five locations.

• Plans to fund share repurchases if approved by shareholders in December.