Rave Restaurant Group (RAVE) Q2 2025 earnings summary

Executive summary

• Revenue for the quarter ended December 29, 2024 was $2.9 million, up from $2.7 million year-over-year; net income was $0.6 million, flat compared to the prior year.

• Six-month revenue was $5.9 million, up from $5.8 million; net income for the period was $1.1 million, up from $0.9 million year-over-year.

• Adjusted EBITDA for the quarter rose to $0.8 million from $0.5 million, a 51% increase year-over-year.

• Income before taxes rose 39% to $0.7 million compared to the same quarter last year.

• Marked the 19th consecutive quarter of profitability.

Financial highlights

• Basic and diluted EPS for the quarter were $0.04, unchanged year-over-year; six-month EPS was $0.08, up from $0.07.

• Cash provided by operating activities for the six months was $1.2 million, up from $0.3 million year-over-year.

• Cash and cash equivalents at period end were $2.9 million; short-term investments totaled $6.0 million.

• Total expenses decreased by $88,000 year-over-year.

• Profit before tax for the fiscal year to date is up over 36% from the prior year.

Outlook and guidance

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

• Plans to finish nine restaurant reimages this fiscal year, with eight expected to complete within the year.

• Third quarter will introduce three varieties of baked pastas to the Pizza Inn buffet.

• Focus on operational improvements at Pie Five to increase make-line capacity and guest volume.

• Cash on hand and operating cash flow are expected to be sufficient to fund operations for at least the next 12 months.