Rave Restaurant Group, Inc. RAVE reported earnings per share (EPS) of 6 cents in the fourth quarter of fiscal 2024, which increased 50% year over year.

Full-year EPS was 17 cents, up 70% compared with that at the end of the comparable fiscal 2023 period.

RAVE’s Revenues in Detail

Rave Restaurant registered revenues of $3.4 million in the fiscal fourth quarter, up $0.3 million year over year.

Lower revenues from the Pie Five Franchising segment dampened the topline.

Full-year revenues were $12.2 million, reflecting a 2.2% improvement from the comparable fiscal 2023 period.

Shares of this company gained nearly 20% till last trading.

Rave Restaurant’s Segment Details

Rave Restaurant derives revenues from two segments — Pizza Inn Franchising and Pie Five Franchising.

For the quarter under review, Pizza Inn Franchising domestic comparable store retail sales decreased 1.5% year over year, while Pie Five domestic comparable store retail sales decreased 10.6% year over year.

Pizza Inn’s domestic unit count finished the fiscal fourth quarter at 105, while its international unit count finished at 24. Pie Five domestic unit count finished the fiscal fourth quarter at 20.

For the full fiscal year, Pizza Inn Franchising revenues were $10.3 million, up 4.9% from fiscal 2023. This primarily resulted from increases in supplier and distributor incentives.

Pizza Inn’s domestic comparable store retail sales increased 2.3% for the fiscal year ended June 30, 2024, compared with the prior fiscal year.

Pie Five Franchising segment’s fiscal 2024 revenues were $1.7 million, down 8.9% from fiscal 2023. This primarily resulted from decreases in domestic royalties and advertising fund revenues, offset by increases in default and closed-store revenues.

Pie Five domestic comparable store retail sales decreased 3.7% for the fiscal year ended June 30, 2024, compared with the same period of the prior fiscal year.

Rave Restaurant Group, Inc. Price, Consensus and EPS Surprise

Rave Restaurant Group, Inc. price-consensus-eps-surprise-chart | Rave Restaurant Group, Inc. Quote

RAVE’s Operating Expenses Analysis

General and administrative expenses at the end of fiscal 2024 declined 4.1% year over year to $5.3 million due to decreased salary and stock-based compensation expenses.

At the end of fiscal 2024, franchise expenses decreased 7.6% to $3.7 million from $3.9 million in fiscal 2023. Pizza Inn franchise expenses decreased 2.4% to $2.9 million for fiscal 2024 from $3.1 million in fiscal 2023 due to a decline in advertising fees. Pie Five franchise expenses decreased 25.2% to $0.7 million for fiscal 2024 from $0.9 million in fiscal 2023 owing to decreases in advertising fees and salaries.