Rave Restaurant Group Inc
NASDAQ:RAVE
Rave Restaurant Group Inc
Rave Restaurant Group, Inc. engages in the management and franchising of restaurants. The company is headquartered in The Colony, Texas and currently employs 23 full-time employees. The Company’s operating segments include Pizza Inn Franchising, Pie Five Franchising and Company-Owned Restaurants. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The Company-Owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture, and fixtures for the Company-owned restaurants.
Rave Restaurant Group, Inc. engages in the management and franchising of restaurants. The company is headquartered in The Colony, Texas and currently employs 23 full-time employees. The Company’s operating segments include Pizza Inn Franchising, Pie Five Franchising and Company-Owned Restaurants. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The Company-Owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture, and fixtures for the Company-owned restaurants.
COVID-19 Impact: The pandemic significantly disrupted RAVE's turnaround progress, leading to a sharp decline in sales and operational challenges, especially for buffet locations.
Revenue Decline: Total revenue fell by $0.4 million to $2.7 million in Q3 2020 compared to the prior year.
Larger Net Loss: The company reported a net loss of $4.5 million, up from a $0.3 million loss last year, mainly due to a $4.3 million increase in reserve for deferred tax assets and lease impairment charges.
Same-Store Sales Down: Pizza Inn domestic comp retail sales dropped 7.8%, while Pie Five domestic comp same-store sales declined 21.4% in Q3 2020.
Cost-Cutting Measures: Management implemented furloughs for two-thirds of support staff and a 20% pay cut for remaining employees, including executives.
Pie Five Commitment: Management emphasized they are not giving up on Pie Five, despite ongoing losses and underperformance, and are working on a strategic repositioning.
PPP Loan Retained: RAVE received a $656,830 SBA loan and confirmed they are keeping it, as they meet all eligibility requirements.
Unit Count Changes: Pizza Inn opened 3 and closed 4 domestic units, Pie Five closed 10 units, ending the quarter with 152 Pizza Inn and 43 Pie Five domestic locations.
