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Rave Restaurant Group, Inc. RAVE reported earnings per share of 4 cents in the first quarter of fiscal 2025, which increased by a penny year over year.
RAVE’s Revenues in Detail
Rave Restaurant registered revenues of $3.1 million in the fiscal first quarter, down 1.2% year over year.
Lower revenues from the Pie Five Franchising segment dampened the topline.
Shares of this company lost nearly 1.4% in yesterday’s after-hours trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Rave Restaurant’s Segment Details
Rave Restaurant derives revenues from two segments — Pizza Inn Franchising and Pie Five Franchising.
For the quarter under review, Pizza Inn Franchising revenues were $2.7 million, up 4.5% year over year. This was driven by increases in supplier and distributor incentives.
In the first quarter of fiscal 2025, Pizza Inn’s domestic comparable store retail sales decreased 2.1% year over year. Pizza Inn’s domestic unit count finished the fiscal first quarter at 102, while its international unit count finished at 26.
Pie Five Franchising segment’s fiscal first-quarter revenues were $0.3 million, down 29.6% year over year. This primarily resulted from decreases in domestic royalties.
In the first quarter of fiscal 2025, Pie Five’s domestic comparable store retail sales decreased 8.7% year over year. Pie Five domestic unit count finished the fiscal first quarter at 20.
Rave Restaurant Group, Inc. Price, Consensus and EPS Surprise
Rave Restaurant Group, Inc. price-consensus-eps-surprise-chart | Rave Restaurant Group, Inc. Quote
RAVE’s Operating Expenses Analysis
General and administrative expenses at the end of first-quarter fiscal 2025 increased 7.4% year over year to $1.4 million. This resulted from increases in legal fees, primarily due to decreases in legal settlement recoveries.
At the end of the fiscal first quarter, franchise expenses decreased 15.1% year over year to $0.9 million due to decreases in advertising fees. Pizza Inn franchise expenses decreased 5.7% year over year to $0.9 million in first-quarter fiscal 2025. Pie Five franchise expenses decreased 53.7% to $0.1 million in first-quarter fiscal 2025.
Rave Restaurant’s Profitability
The operating income for first-quarter fiscal 2025 totaled $0.7 million, which increased 34.2% year over year.
For the fiscal first quarter, Rave Restaurant’s net income was $2.5 million, up 36.3% year over year.
For the fiscal first quarter, adjusted EBITDA increased 22.9% year over year to $0.7 million.
RAVE’s Liquidity & Debt Management
Rave Restaurant exited first-quarter fiscal 2025 with cash and cash equivalents and short-term investments of $8.4 million compared with $7.8 million at fiscal 2024-end.