One year after receiving its second Nasdaq delisting warning notice within six months, Rave Restaurant Group has begun a slow turnaround, with modest gains in the second quarter of 2022, according to an earnings statement released on Friday for the second quarter ended Dec. 26.
Same-store sales for pizza buffet chain, Pizza Inn, were up 31%, while fast-casual pizza brand, Pie five, saw same-store sales gains of 15%. With the positive momentum, Rave Restaurant Group’s stock price went up Friday from .94 cents per share to $1.05.
"Our second quarter net income before tax of $461 thousand marks the seventh consecutive quarter of positive income and is 343% better than a year ago, demonstrating our winning business model and the loyalty of our customers,” CEO Brandon Solano said in a statement. “Our franchisees have done amazing work serving customers and their communities and remain motivated to support and retain employees who are the heartbeat of our hometown pizza establishments.”
Rave’s total revenue more than quadrupled over the past year from $0.6 million to $2.7 million. The company also reported net income of $457,000 for its 195 stores for the second quarter, compared to $102,000 the same quarter a year prior.
The executive team attributes its positive sales momentum to menu innovation like Pizza Inn’s house pan pizza launched in September and Pie Five’s Sticky fingers pizza, made with Mike’s Hot Honey and cupped pepperoni. Pie Five is also testing out a new menu with a “strong emphasis on salads” and refreshed restaurant décor.
Of course, Rave’s modest improvements were not without controversy. Solano, on behalf of Rave Restaurant Group, released a statement on Jan. 7, 2021, the day after the Jan. 6 U.S. Capitol insurrection that Pizza Inn supports election reform, and that they “believe that widespread voter fraud may have changed the results of the Presidential election.” The press release has since been deleted.
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