Rave Restaurant Group (RAVE) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended December 28, 2025 was $3.0 million, up 6.0% year-over-year; net income was $0.6 million, up 4.9% year-over-year.

• Achieved 23rd consecutive quarter of profitability, driven by growth in Pizza Inn buffet openings and positive same store sales trends.

• Opened three new Pizza Inn buffet restaurants in the quarter, the most in over 20 years within a three-week period.

• Six-month revenue reached $6.3 million, a 5.7% increase year-over-year; net income for the period was $1.3 million, up from $1.1 million.

• Growth in Pizza Inn franchise revenues offset declines in Pie Five revenues, reflecting brand performance divergence.

Financial highlights

• Operating income for the quarter was $0.74 million, up from $0.66 million year-over-year; six-month operating income was $1.5 million, up from $1.3 million.

• Adjusted EBITDA for the quarter was $0.9 million, up 5.3% year-over-year; six-month Adjusted EBITDA was $1.7 million, up $0.2 million.

• Basic and diluted EPS for the quarter were $0.04, unchanged year-over-year; six-month EPS was $0.09, up from $0.08.

• Cash and short-term investments totaled $10.9 million at quarter-end; no debt on the balance sheet.

• Adjusted EBITDA margin for Q2 2026 was approximately 28%.

Outlook and guidance

• Management expects modest increases in Pizza Inn domestic and international units and a modest decrease in Pie Five units in future periods.

• Management expresses confidence in scaling restaurant openings and sustaining profitability, with aggressive guest acquisition strategies and value-driven promotions at Pizza Inn.

• Cautious optimism due to industry-wide sluggish growth and sales pressure.

• Cash and short-term investments, along with operating cash flow, are expected to fund operations for at least the next 12 months.