Rave Restaurant Group (RAVE) investor relations material

Executive summary

• Q1 FY27 revenue rose 3.4% to $3.322M and net income increased 3.1% to $665K YoY.

• Adjusted EBITDA was $834K vs. $830K; diluted EPS remained $0.05.

• Pizza Inn franchising strength and Treasury-bill interest income offset lower Pie Five revenue and retail sales.

Financial highlights

• Operating income was $760K vs. $752K; income before taxes was $880K vs. $851K YoY.

• Total costs and expenses were $2.562M vs. $2.461M; G&A expense rose 2.9% to $1.4M, and franchise expense increased 6.7% to $1.1M.

• Interest income rose $26K to $117K, primarily from U.S. Treasury bills; income tax expense was $215K vs. $206K.

Outlook and guidance

• Initiatives target sequential improvement in Pizza Inn comparable-store and total sales; product innovation and advertising support are planned for December.

• Five restaurants under a 10-unit development deal are no longer expected to open this fiscal year following recent events with the multi-brand operator.

• Pizza Inn domestic and international unit counts are expected to increase modestly; Pie Five units are expected to decrease.

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