Rave Restaurant Group (RAVE) Q3 2025 earnings summary

Executive summary

• Revenue for the quarter ended March 30, 2025 was $3.0 million, flat compared to the same quarter last year; nine-month revenue was $8.9 million, up slightly year-over-year.

• Net income for the quarter was $0.7 million ($0.05 per share), up from $0.65 million ($0.04 per share) last year; nine-month net income was $1.9 million ($0.13 per share), up from $1.6 million ($0.11 per share) year-over-year.

• Achieved 20th consecutive quarter of profitability, with net income rising 10.4% year-over-year for Q3 2025.

• Strategic marketing, value-driven promotions, and store reimaging contributed to sales growth and improved guest experience.

• Adjusted EBITDA for the quarter increased by $0.1 million year-over-year, rising 13.2% to $1.0 million.

Financial highlights

• Pizza Inn franchise revenues rose 6.5% to $2.7 million for the quarter and 7.4% to $7.9 million for the nine months, driven by supplier and distributor incentives.

• Pie Five franchise revenues fell 32.6% to $0.3 million for the quarter and 30.8% to $0.9 million for the nine months, due to lower royalties from fewer units.

• General and administrative expenses were stable at $1.3 million for the quarter; nine-month G&A expenses increased 2.5% to $4.0 million.

• Interest income increased to $84,000 for the quarter and $253,000 for the nine months, driven by higher returns on U.S. Treasury bills.

• Income before taxes increased 11.2% year-over-year to $1.0 million.

Outlook and guidance

• Management expects modest increases in both domestic and international Pizza Inn units in future periods, while Pie Five units are expected to decrease modestly.

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

• Plans to expand the $8 buffet promotion to more stores in Q4, following strong test results.

• Eight to ten store reimages expected to be completed by fiscal year-end, with positive sales impact.

• Continued focus on pipeline development for new and reimaged stores.