News

Rave Restaurant Group reports sales drop at Pie Five, growth for Pizza Inn

November 7, 2018

Rave Restaurant Group, the parent company of Pizza Inn and Pie Five, reported disappointing Q1 sales at Pie Five, but its older, full-service brand, Pizza Inn, showed a 2.3 percent growth in domestic comp store sales.

According to a company press release, other key Q1 2019 results included: 

• 1.1 percent growth in Rave total comparable store retail sales over the prior year's period.
• 1.8 percent drop in Pie Five comparable store retail sales, with 6.4 percent drop in total systemwide retail sales. 
• $2.4 million to $3 million drop in Q1 total revenue from $5.4 million from the prior year period due to fewer company-owned stores.
• $0.5 million to $0.1 million Q1 net income growth over $0.4 million net loss for the prior year period. 
• $0.01 per diluted share Q1 net income compared to $0.03 per share loss for the prior year period. 
• EBITDA flat year over year for the quarter at $0.3 million.
• $0.2 million drop in Q1 adjusted EBITDA to $0.5 million $

"Despite negative impacts from Hurricane Florence, Pizza Inn had its seventh consecutive quarter of growth in comparable store retail sales. We can firmly say that we are on the right track," Rave Restaurant Group President Bob Bafundo, said in the release. "Previous momentum from all-day buffet, online ordering, and remodeled franchise locations continued through the first quarter. This positive traction has reinvigorated our franchise base, providing tailwinds for higher sales. In addition, we've seen a strong adoption by franchisees of our new point-of-sale system which is giving us meaningful consumer data and analytics to further refine our strategy."

There were no changes in the domestic net unit count for Pizza Inn during the quarter, which ended with 153 stores for the brand. International Pizza Inn unit count fell by seven to 51 as of Sept. 23, 2018. Pie Five unit count decreased by two to end the first quarter of fiscal 2019 at 71.