Rave Restaurant Group, Inc. RAVE unveiled a strong financial performance for fiscal 2024. Earnings per share (EPS) soared to 6 cents in the fourth quarter, marking a remarkable 50% increase year over year. The full-year EPS stood at 17 cents, reflecting a substantial 70% surge from the comparable fiscal 2023 period.
Rave Restaurant Group’s Revenue Growth
Rave Restaurant Group’s revenue for the fourth quarter of fiscal 2024 reached $3.4 million, up by $0.3 million compared to the previous year. Despite this growth, lower revenues from the Pie Five Franchising segment restrained the overall top-line. The full-year revenues amounted to $12.2 million, showing a moderate 2.2% improvement from fiscal 2023. This positive performance contributed to a nearly 20% increase in the company’s stock value in recent trading sessions.
Rave Restaurant Group’s Segment Analysis
Revenue streams for Rave Restaurant Group are divided into two key segments — Pizza Inn Franchising and Pie Five Franchising.
In the fourth quarter, Pizza Inn Franchising reported a 1.5% decline in domestic comparable store retail sales year over year, while Pie Five Franchising saw a significant 10.6% decrease in the same metric. The fiscal year ended with Pizza Inn Franchising revenues at $10.3 million, up by 4.9% from fiscal 2023, primarily driven by increases in supplier and distributor incentives.
For the same period, Pizza Inn’s domestic comparable store retail sales demonstrated a positive 2.3% growth, underscoring the segment’s robust performance. In contrast, Pie Five Franchising reported a revenue decrease of 8.9%, primarily attributed to reductions in domestic royalties and advertising fund revenues, although offset by gains in default and closed-store revenues.
Performance Highlights and Future Prospects
Rave Restaurant Group’s fiscal 2024 operation exhibited favorable financial indicators. The company’s operating income surged by 43.8% from fiscal 2023, reaching $3.1 million for the year. Moreover, net income for the fiscal year totaled $2.5 million, showing a notable 53.3% increase from the previous year. Adjusted EBITDA also marked a positive trend, rising to $3.2 million for fiscal 2024, a 16.8% increase from the prior fiscal year.
Enhanced Liquidity and Financial Management
At the close of fiscal 2024, Rave Restaurant Group boasted cash and cash equivalents, along with short-term investments, amounting to $7.8 million, up from $5.3 million at the end of fiscal 2023. Cumulative net cash from operating activities for fiscal 2024 summed up to $2.7 million, slightly higher than the previous year’s figure.
Key Takeaways and Outlook
Rave Restaurant Group concludes fiscal 2024 with robust financial results and promising future undertakings. The company’s strong performance in the Pizza Inn Franchising segment and the growth in domestic comparable store retail sales are encouraging signs. Additionally, the ongoing plan to reimagine over 25% of buffet restaurants by the end of fiscal 2025 adds a layer of optimism for investors.
During the fourth quarter of fiscal 2024, Rave Restaurant Group launched a new online ordering platform, expected to drive digital sales with improved efficiency and integration capabilities. Despite some setbacks with lower revenues in the Pie Five Franchising segment and reduced domestic retail sales, the company’s strategic moves position it well for future growth.