Rave Restaurant Group (RAVE) Q3 2026 earnings summary

Executive summary

• Revenue for the quarter ended March 29, 2026 was $3.2 million, up 8.7% year-over-year; net income was $0.8 million, up 10.8% from the prior year quarter.

• Nine-month revenue reached $9.5 million, a 6.7% increase year-over-year; net income for the period was $2.1 million, up from $1.9 million.

• Growth was driven by higher system-wide retail sales in the Pizza Inn segment, offset by declines in Pie Five due to unit closures.

• Adjusted EBITDA for the quarter was $1.1 million, up 16.4% year-over-year.

• Cash and short-term investments totaled $12.0 million at quarter-end.

Financial highlights

• Operating income for the quarter was $957,000, up from $855,000 year-over-year; nine-month operating income was $2.5 million, up from $2.1 million.

• Adjusted EBITDA for the quarter was $1.1 million, up from $953,000; nine-month Adjusted EBITDA was $2.8 million, up from $2.5 million.

• Basic EPS for the quarter was $0.06, up from $0.05; nine-month EPS was $0.15, up from $0.13.

• Income before taxes increased 11.1% to $1.1 million year-over-year.

• General and administrative expenses increased to $1.47 million from $1.31 million year-over-year.

Outlook and guidance

• Thirteen new Pizza Inn restaurants are under contract to open in the next three quarters, with five currently under construction.

• Management expects modest growth in Pizza Inn units and a modest decrease in Pie Five units in future periods.

• Management remains optimistic about continued profitability and growth, citing a strong development pipeline.

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