Rave Restaurant Group, Inc. RAVE reported earnings per share (EPS) of 6 cents within the fourth quarter of fiscal 2024, which elevated 50% yr over yr.
Full-year EPS was 17 cents, up 70% in contrast with that on the finish of the comparable fiscal 2023 interval.
RAVE’s Revenues in Element
Rave Restaurant registered revenues of $3.4 million within the fiscal fourth quarter, up $0.3 million yr over yr.
Decrease revenues from the Pie 5 Franchising section dampened the topline.
Full-year revenues had been $12.2 million, reflecting a 2.2% enchancment from the comparable fiscal 2023 interval.
Shares of this firm gained practically 20% until final buying and selling.
Rave Restaurant’s Section Particulars
Rave Restaurant derives revenues from two segments — Pizza Inn Franchising and Pie 5 Franchising.
For the quarter below evaluate, Pizza Inn Franchising home comparable retailer retail gross sales decreased 1.5% yr over yr, whereas Pie 5 home comparable retailer retail gross sales decreased 10.6% yr over yr.
Pizza Inn’s home unit depend completed the fiscal fourth quarter at 105, whereas its worldwide unit depend completed at 24. Pie 5 home unit depend completed the fiscal fourth quarter at 20.
For the complete fiscal yr, Pizza Inn Franchising revenues had been $10.3 million, up 4.9% from fiscal 2023. This primarily resulted from will increase in provider and distributor incentives.
Pizza Inn’s home comparable retailer retail gross sales elevated 2.3% for the fiscal yr ended June 30, 2024, in contrast with the prior fiscal yr.
Pie 5 Franchising section’s fiscal 2024 revenues had been $1.7 million, down 8.9% from fiscal 2023. This primarily resulted from decreases in home royalties and promoting fund revenues, offset by will increase in default and closed-store revenues.
Pie 5 home comparable retailer retail gross sales decreased 3.7% for the fiscal yr ended June 30, 2024, in contrast with the identical interval of the prior fiscal yr.
Rave Restaurant Group, Inc. Value, Consensus and EPS Shock
Rave Restaurant Group, Inc. price-consensus-eps-surprise-chart | Rave Restaurant Group, Inc. Quote
RAVE’s Working Bills Evaluation
Basic and administrative bills on the finish of fiscal 2024 declined 4.1% yr over yr to $5.3 million as a consequence of decreased wage and stock-based compensation bills.
On the finish of fiscal 2024, franchise bills decreased 7.6% to $3.7 million from $3.9 million in fiscal 2023. Pizza Inn franchise bills decreased 2.4% to $2.9 million for fiscal 2024 from $3.1 million in fiscal 2023 as a consequence of a decline in promoting charges. Pie 5 franchise bills decreased 25.2% to $0.7 million for fiscal 2024 from $0.9 million in fiscal 2023 owing to decreases in promoting charges and salaries.
Rave Restaurant’s Profitability
The working revenue for the complete fiscal yr 2024 totaled $3.1 million, which elevated 43.8% from fiscal 2023.
For fiscal 2024, Rave Restaurant’s internet revenue was $2.5 million, up 53.3% from fiscal 2023. For the fiscal fourth quarter, internet revenue was $0.9 million in contrast with $0.6 million within the prior-year quarter.
For fiscal 2024, adjusted EBITDA was $3.2 million, up 16.8% from fiscal 2023. For the fiscal fourth quarter, adjusted EBITDA elevated from $0.2 million to $1.2 million yr over yr.
RAVE’s Liquidity & Debt Administration
Rave Restaurant exited fiscal 2024 with money and money equivalents and short-term investments of $7.8 million in contrast with $5.3 million at fiscal 2023-end.
Cumulative internet money offered by working actions on the finish of fiscal 2024 was $2.7 million in contrast with $2.6 million a yr in the past.
Our Take
Rave Restaurant exited fiscal 2024 with stable top-line and bottom-line outcomes. Robust revenues from the Pizza Inn Franchising section and an uptick in home comparable retailer retail gross sales had been additionally encouraging. Administration expects to have greater than 25% of the corporate’s buffet eating places reimaged by the tip of fiscal 2025, which raises our optimism in regards to the inventory.
In the course of the fiscal fourth quarter, Rave Restaurant rolled out a brand new on-line ordering platform that’s anticipated to extend its digital enterprise as fewer orders are actually being dropped throughout the on-line ordering course of, and orders from third-party supply websites are actually being built-in into its point-of-sale system. This additionally seems to be promising for the inventory.
Nevertheless, decrease revenues from the Pie 5 Franchising section and decrease home comparable retailer retail gross sales throughout the fiscal yr had been discouraging.
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