Rave Restaurant Group, Inc. continues to struggle during the COVID-19 pandemic, reporting a 34% decrease in revenues from $2.9 million to $1.9 million on Friday for the Q1 fiscal quarter ended Sept. 27, 2020.
Following a delisting warning notice from the Nasdaq in July for not being in compliance with the stock exchange’s stockholder equity minimum of $2.5 million, the Pie Five and Pizza Inn parent company was able to escape this danger zone during Q1 2021. According to an 8-K filed with the Securities and Exchange Commission in October, Rave Restaurant Group reported earning $3.65 million from selling 2.5 million shares before the end of the first quarter.
"Income before taxes of $78 thousand is an encouraging start for the first quarter of fiscal 2021 and demonstrates our commitment to controlling costs amid revenue declines," Clint Fendley, vice president of finance of Rave Restaurant Group, Inc. "Rave's cash balance of $2.9 million coupled with $3.8 million of gross proceeds from sales of common stock subsequent to the first quarter reinforces our position as we continue to confront near-term uncertainty in our industry."
The company reported a domestic same-store sales decrease of 22% for pizza buffet chain Pizza Inn and 23% decrease in domestic same-store sales for fast-casual pizza chain, Pie Five.
“At Pizza Inn, we created the contactless buffet to-go to maximize value and variety for guests and to lower the impact of reduced foot traffic," Rave Restaurant Group Brandon Solano said in a statement. "We recently brought it back with three new value-oriented options and along with our new right-way buffet [socially distanced for the COVID-era], we are seeing impressive results in driving traffic and ticket average."
Solano added that Pie Five has been focusing on menu upgrades that they plan to roll out soon, and have seen a “steady return in traffic” from their Circle of Crust rewards program.
Rave Restaurant Group’s income before taxes was $78,000 for the first quarter of 2021 compared to $310,000 for the same period last year, or $0.00 per share compared with $0.01 the same quarter the year prior.
As of Sept. 27, 2020, Rave Restaurant Group had 217 units in both brands internationally.
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