DALLAS, Feb. 05, 2026 (GLOBE NEWSWIRE) -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported ...


DALLAS, Feb.  05, 2026  (GLOBE NEWSWIRE) -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the second quarter of fiscal 2026 ended December 28, 2025.  Second Quarter Highlights:   The Company recorded net income of $0.6 million for the second quarter of fiscal 2026, a 4.9% increase from the same period of the prior year.Income before taxes increased by 12.1% to $0.8 million for the second quarter of fiscal 2026 compared to the same period of the prior year.Total revenue increased by $0.2 million to $3.0 million for the second quarter of fiscal 2026 compared to the same period of the prior year, a 6.0% increase.Adjusted EBITDA increased by $0.1 million to $0.9 million for the second quarter of fiscal 2026 compared to the same period of the prior year, a 5.3% increase.On a fully diluted basis, net income per share was $0.04 for the second quarter of fiscal 2026, the same as it was in the same period of the prior year.Pizza Inn domestic comparable store retail sales increased 2.5% in the second quarter of fiscal 2026 compared to the same period of the prior year.Pie Five domestic comparable store retail sales decreased 1.5% in the second quarter of fiscal 2026 compared to the same period of the prior year.Cash and short-term investments totaled $10.9 million on December 28, 2025.Pizza Inn domestic unit count finished the quarter at 97, including 82 buffet locations. There were three new buffet openings and no buffet closures during the second quarter.Pizza Inn international unit count finished the quarter at 19.Pie Five domestic unit count finished the quarter at 16.  “Quarter Two represented our 23rd consecutive quarter of profitability as we continue to execute on our Mission 2030 strategy delivering profitable growth,” said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc.  “We opened three new Pizza Inn buffet restaurants in the second quarter demonstrating the commitment Rave has made in growing the Pizza Inn buffets is bearing fruit," continued Solano. “Excellent planning and execution from our Development, Training, and Operations teams allowed the three successful openings to occur over a three-week period, something that Pizza Inn hasn’t done in over 20 years, giving me confidence that we will be able to open restaurants at scale in the future."  Solano added, “While the restaurant industry on a whole faces sluggish growth and pressure on sales and traffic, Pizza Inn continues to grow both unit count and same store sales. We followed positive 8.1 percent domestic same store sales growth in the first quarter with positive 2.5 percent domestic same store sales growth in the second quarter. We are continuing to aggressively compete for every guest in the third quarter with over half of the Pizza Inn buffet restaurants running our widely successful All You Can $8 value driven promotion, that was formerly known as I $8 at Pizza Inn, in January with some restaurants signed up to continue later into the quarter.”  Chief Financial Officer Jay Rooney added, “We are pleased with the financial position Rave is in after stellar quarter two results driven by quality earnings from the sales increase at Pizza Inn. Pie Five same store sales improved from their trend but were still negative. While the impact of Pie Five on overall Rave results continues to decrease, the Rave management team is dedicated improving the brand’s performance with the introduction of new advertising, product innovation, operational efficiency, and pricing initiatives. The continued profitability of both brands has created a solid Rave balance sheet with no debt and high liquidity thus well positioning us for the future.”  Non-GAAP Financial Measures  The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for its financial statements prepared in accordance with generally accepted accounting principles.  The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.  “EBITDA” represents earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying consolidated financial statements.  Note Regarding Forward Looking Statements  Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve current judgments about future events and performance, including statements regarding our optimism that current positive trends will continue, our ability to continue to successfully open new restaurant locations, our belief that we are well positioned for continued profitability as well as the continued returns on our reimaging initiatives, the strength of our development pipeline, as well as future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.  About RAVE Restaurant Group, Inc.Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] has inspired restaurant innovation and countless customer smiles with its trailblazing pizza concepts. The Company franchises, licenses and supplies Pie Five and Pizza Inn restaurants operating domestically and internationally. The Pizza Inn experience is unlike your typical buffet. Since 1958, Pizza Inn's house-made dough, house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce combined with friendly service solidified the brand to become America's favorite hometown pizza place. These, in addition to its small-town vibe, are the hallmarks of Pizza Inn restaurants. In 2011, RAVE introduced Pie Five Pizza, pioneering a fast-casual pizza brand that transformed the classic pizzeria into a concept offering personalization, sophisticated ingredients and speed. Pie Five's craft pizzas are baked fresh daily and feature house-made ingredients, creative recipes and craveable crust creations. For more information, visit www.raverg.com, and follow on Instagram @pizzainn and @piefivepizza.  Contact:Investor RelationsRAVE Restaurant Group, Inc.469-384-5000  RAVE RESTAURANT GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In thousands, except share amounts)(Unaudited)                   Three Months Ended Six Months Ended  December 28, December 29, December 28, December 29,  2025 2024 2025 2024REVENUES $3,042  $2,869  $6,255  $5,919                  COSTS AND EXPENSES                General and administrative expenses  1,519   1,314   2,897   2,734 Franchise expenses  732   829   1,769   1,824 Provision (recovery) for credit losses  7   9   11   (8)Depreciation and amortization expense  42   53   84   96 Total costs and expenses  2,300   2,205   4,761   4,646 OPERATING INCOME  742   664   1,494   1,273 Interest income  91   87   182   169 Other income  9   -   17   4 INCOME BEFORE TAXES  842   751   1,693   1,446 Income tax expense  205   144   411   313 NET INCOME $637  $607  $1,282  $1,133                  INCOME PER SHARE OF COMMON STOCK                Basic $0.04  $0.04  $0.09  $0.08 Diluted $0.04  $0.04  $0.09  $0.08                  WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                Basic  14,212   14,690   14,212   14,638 Diluted  14,276   14,716   14,277   14,660                     RAVE RESTAURANT GROUP, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share amounts)(Unaudited)           December 28, June 29,  2025 2025ASSETS        CURRENT ASSETS        Cash and cash equivalents $624  $2,859 Short-term investments  10,279   7,024 Accounts receivable, less allowance for credit losses of $35 and $31, respectively  1,326   1,171 Notes receivable, current  28   45 Assets held for sale  37   38 Deferred contract charges, current  24   21 Prepaid expenses and other current assets  689   335 Total current assets  13,007   11,493          LONG-TERM ASSETS        Property and equipment, net  111   137 Operating lease right-of-use assets, net  335   489 Intangible assets definite-lived, net  141   182 Notes receivable, net of current portion  74   75 Deferred tax asset, net  3,647   3,995 Deferred contract charges, net of current portion  232   186 Total assets $17,547  $16,557          LIABILITIES AND SHAREHOLDERS' EQUITY        CURRENT LIABILITIES        Accounts payable - trade $479  $207 Accrued expenses  576   855 Operating lease liabilities, current  378   370 Deferred revenues, current  97   308 Total current liabilities  1,530   1,740          LONG-TERM LIABILITIES        Operating lease liabilities, net of current portion  15   206 Deferred revenues, net of current portion  466   457 Total liabilities  2,011   2,403          COMMITMENTS AND CONTINGENCIES (SEE NOTE C)                 SHAREHOLDERS' EQUITY        Common stock, $0.01 par value; authorized 26,000,000 shares; issued 25,647,171 and 25,647,171 shares, respectively; outstanding 14,211,566 and 14,211,566 shares, respectively  256   256 Additional paid-in capital  37,616   37,516 Retained earnings  8,896   7,614 Treasury stock, at cost        Shares in treasury: 11,435,605 and 11,435,605 respectively  (31,232)  (31,232)Total shareholders' equity  15,536   14,154          Total liabilities and shareholders' equity $17,547  $16,557             RAVE RESTAURANT GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)           Six Months Ended  December 28, December 29,  2025 2024CASH FLOWS FROM OPERATING ACTIVITIES:        Net income $1,282  $1,133 Adjustments to reconcile net income to cash provided by operating activities:        Amortization of discount on short-term investment  (122)  (63)Stock-based compensation expense  100   126 Depreciation and amortization  43   46 Amortization of operating lease right-of-use assets  154   169 Amortization of definite-lived intangible assets  41   41 Non-cash lease expense  8   43 Provision (recovery) for credit losses  11   (8)Deferred income tax  348   264 Changes in operating assets and liabilities:        Accounts receivable  (166)  304 Notes receivable  18   26 Deferred contract charges  (49)  15 Prepaid expenses and other current assets  (354)  (40)Accounts payable - trade  272   96 Accrued expenses  (279)  (417)Operating lease liabilities  (191)  (236)Deferred revenues  (202)  (267)Cash provided by operating activities  914   1,241          CASH FLOWS FROM INVESTING ACTIVITIES:        Purchases of short-term investments  (8,423)  (8,102)Maturities of short-term investments  5,290   7,065 Purchase of assets held for sale  (4)  - Proceeds from sale of assets held for sale  5   7 Purchase of property and equipment  (17)  (44)Cash used in investing activities  (3,149)  (1,074)         CASH FLOWS FROM FINANCING ACTIVITIES:        Taxes paid on issuance of restricted stock units  -   (182)Cash used in financing activities  -   (182)         Net decrease in cash and cash equivalents  (2,235)  (15)Cash and cash equivalents, beginning of period  2,859   2,886 Cash and cash equivalents, end of period $624  $2,871          SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                 CASH PAID FOR:        Income taxes $97  $50             RAVE RESTAURANT GROUP, INC.ADJUSTED EBITDA(In thousands)(Unaudited)                 Three Months Ended Six Months Ended December 28, December 29, December 28, December 29, 2025 2024 2025 2024Net income$637  $607  $1,282  $1,133 Interest income (91)  (87)  (182)  (169)Income taxes 205   144   411   313 Depreciation and amortization 42   53   84   96 EBITDA$793  $717  $1,595  $1,373 Stock-based compensation expense 62   53   100   126 Severance 6   5   6   5 Franchisee default and closed store revenue (9)  32   (19)  23 Adjusted EBITDA$852  $807  $1,682  $1,527                    
            

RAVE

RAVE Restaurant Group, Inc. Reports Second Quarter 2026 Results

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>DALLAS, Feb. 05, 2026 (GLOBE NEWSWIRE) -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported ...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>RAVE Restaurant Group demonstrated profitability in Q2 2026 with a 4.9% net income rise and a 6% revenue growth, driven by Pizza Inn&#039;s strong sales while Pie Five faced challenges. The company continues expanding unit count, indicating a positive trajectory in its business strategy despite overall industry pressures.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>RAVE reported Q2 earnings of $0.6M, up 4.9% YoY.</li><li>Total revenue increased to $3.0M, a 6% increase YoY.</li><li>Pizza Inn&#039;s comparable store sales rose by 2.5%.</li><li>Pie Five&#039;s comparable store sales fell by 1.5%.</li><li>RAVE maintains strong liquidity with no debt as of December 2025.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Pizza Inn (N/A)</strong>: Operational growth and inviting promotions improving sales performance.</li><li><strong>Pie Five (N/A)</strong>: Struggles in same-store sales suggest need for strategic improvements.</li></ul>
  </section>

  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>This fits under &#039;Corporate Developments&#039; as RAVE Restaurant Group&#039;s earnings report reveals critical operational insights and strategies for unit growth, which investors should track closely for future performance indications.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>RAVE&#039;s consistent profitability may attract investor interest in a sluggish market.</li><li>Increased unit count growth can positively impact future revenues.</li><li>Success of Pizza Inn&#039;s new promotional initiatives could drive stronger sales in Q3.</li><li>Pie Five&#039;s turnaround strategy, if successful, could mitigate risks and enhance future performance.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Net income was $0.6M for Q2, up 4.9% YoY.</li><li>Total revenue rose to $3.0M, reflecting a 6% YoY growth.</li><li>Adjusted EBITDA reached $0.9M, a 5.3% increase YoY.</li><li>Pizza Inn achieved 2.5% growth in comparable store sales.</li><li>Cash and short-term investments totaled $10.9M on December 28, 2025.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Invest in RAVE for potential growth in value due to strong unit expansion and solid earnings over the next 6-12 months.</p>
  </section>
</section>


<article>
    <h2>RAVE Restaurant Group, Inc. Reports Strong Second Quarter 2026 Results</h2>
    <p>DALLAS, Feb. 05, 2026 (GLOBE NEWSWIRE) -- <strong>RAVE Restaurant Group, Inc.</strong> (NASDAQ: RAVE) announced its financial results for the second quarter of fiscal 2026, concluding on December 28, 2025. The company demonstrated solid growth and operational efficiency, continuing to drive profitability amidst challenging market conditions.</p>

    <section>
        <h3>Second Quarter Financial Highlights</h3>
        <ul>
            <li><strong>Net Income:</strong> $0.6 million, a <strong>4.9%</strong> increase year-over-year.</li>
            <li><strong>Income Before Taxes:</strong> $0.8 million, up <strong>12.1%</strong> from the prior year.</li>
            <li><strong>Total Revenue:</strong> $3.0 million, marking a <strong>6.0%</strong> increase.</li>
            <li><strong>Adjusted EBITDA:</strong> $0.9 million, a <strong>5.3%</strong> increase year-over-year.</li>
            <li><strong>Net Income Per Share:</strong> $0.04, unchanged from the same period last year.</li>
            <li><strong>Cash and Short-Term Investments:</strong> $10.9 million as of Dec 28, 2025.</li>
        </ul>
    </section>

    <section>
        <h3>Operational Performance</h3>
        <p>Pizza Inn's domestic comparable store retail sales rose by <strong>2.5%</strong> in the second quarter, while Pie Five's comparable store retail sales saw a decline of <strong>1.5%</strong>.</p>
        <p>The operational metrics reflect ongoing adjustments and strategic initiatives in both brands, which include:</p>
        <ul>
            <li><strong>Pizza Inn:</strong> 97 domestic units with 82 buffet locations; opened 3 new buffets.</li>
            <li><strong>Pie Five:</strong> 16 domestic units.</li>
        </ul>
    </section>

    <section>
        <h3>Management Commentary</h3>
        <p>Brandon Solano, CEO of RAVE Restaurant Group, stated, “The second quarter represented our <strong>23rd consecutive quarter of profitability</strong> as we continue to execute our Mission 2030 strategy. We opened three new Pizza Inn buffet restaurants, demonstrating our commitment to robust growth.”</p>
        <p>Solano emphasized the efficient planning and execution by the Development, Training, and Operations teams, which facilitated these openings. He expressed confidence in the brand's capability to scale restaurant openings effectively.</p>
    </section>

    <section>
        <h3>Future Outlook and Challenges</h3>
        <p>Despite a broader industry trend of sluggish sales growth, Pizza Inn has maintained positive performance metrics. Solano pointed out that the brand followed a successful first quarter with an additional <strong>2.5%</strong> growth in same store sales during the second quarter.</p>
        <p>Chief Financial Officer Jay Rooney noted, “We are pleased with our financial position following stellar results, driven largely by increasing sales at Pizza Inn. Although Pie Five's same store sales turned positive but remained below expectations, we are actively pursuing improvements through advertising and product innovation.”</p>
    </section>

    <section>
        <h3>Financial Reporting and Non-GAAP Measures</h3>
        <p>RAVE Restaurant Group's financial statements adhere to U.S. GAAP, but the company also discusses non-GAAP metrics like EBITDA and Adjusted EBITDA, which it deems valuable for investors assessing operational performance.</p>
        <ul>
            <li><strong>EBITDA:</strong> Earnings before interest, taxes, depreciation, and amortization.</li>
            <li><strong>Adjusted EBITDA:</strong> Excludes non-recurring or non-operational expenses for performance evaluation.</li>
        </ul>
    </section>

    <section>
        <h3>Forward-Looking Statements</h3>
        <p>This report contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, relying on numerous assumptions and subject to risks and uncertainties. While management remains optimistic about sustaining positive trends, actual results may vary significantly based on various factors.</p>
    </section>

    <footer>
        <h3>About RAVE Restaurant Group, Inc.</h3>
        <p>RAVE Restaurant Group, based in Dallas and listed on NASDAQ under the symbol <strong>RAVE</strong>, has been a pioneer in the restaurant industry with innovative pizza concepts. The company franchises and supplies both Pie Five and Pizza Inn locations, maintaining a commitment to quality and customer satisfaction since 1958.</p>
    </footer>
</article>

RAVE Restaurant Group demonstrated profitability in Q2 2026 with a 4.9% net income rise and a 6% revenue growth, driven by Pizza Inn's strong sales while Pie Five faced challenges. The company continues expanding unit count, indicating a positive trajectory in its business strategy despite overall industry pressures.

RAVE Restaurant Group, Inc. Reports Second Quarter 2026 Results

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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