Thu, May 8, 1:03 PM (15 days ago)
### Rave Restaurant Group, Inc. (RAVE) Q1 2025 Financial Summary **Overview:** Rave Restaurant Group, Inc. (RAVE) reported stable financial performance for the quarter ended March 30, 2025. The company's revenues and net income showed modest growth, driven by increased franchise royalties and supplier incentives. The company's liquidity position remains strong, supported by cash and short-term investments. **Financial Performance:** - **Revenue:** Total revenues for Q1 2025 were $2.97 million, a slight increase from $2.96 million in Q1 2024. For the nine months ended March 30, 2025, revenues were $8.89 million, up from $8.80 million in the same period last year. - **Profit Margins:** Net income for Q1 2025 was $0.72 million, up from $0.65 million in Q1 2024. For the nine months ended March 30, 2025, net income was $1.86 million, compared to $1.59 million in the same period last year. - **Cash Flow:** Operating cash flow for the nine months ended March 30, 2025, was $2.17 million, an increase from $1.33 million in the same period last year. This improvement was driven by increased collections of accounts receivable. **Segment Performance:** - **Pizza Inn Franchising:** Revenue increased by 6.5% for Q1 2025 and 7.4% for the nine months ended March 30, 2025, driven by increases in supplier and distributor incentives. - **Pie Five Franchising:** Revenue decreased by 32.6% for Q1 2025 and 30.8% for the nine months ended March 30, 2025, due to lower domestic royalties and a decrease in the average store count. **Liquidity and Capital Resources:** - **Cash and Investments:** As of March 30, 2025, the company held $734,000 in cash and $7.99 million in short-term investments, primarily U.S. Treasury bills. - **Stock Repurchase:** On February 24, 2025, the company repurchased 500,000 shares at $2.40 per share. **Future Outlook:** - **Uncertainties:** The company faces uncertainties related to franchisee defaults, economic conditions, and competitive pressures. However, management believes the company's liquidity position and operational strategies will support future growth. - **Future Operations:** The company plans to continue investing in franchise development and operational efficiencies to drive long-term growth. **Conclusion:** Rave Restaurant Group, Inc. demonstrated stable financial performance in Q1 2025, with modest revenue and net income growth. The company's strong liquidity position and strategic investments in franchise development position it well for future growth. However, ongoing uncertainties and competitive pressures will require continued focus on operational efficiency and market adaptation.