Pie Five loses big in Q1 2018, Pizza Inn fares better
Pie Five and Pizza Inn parent Rave Restaurant Group released Q1 financial results today for the period ending Sept. 24. The news was dismal for the younger Pie Five brand, especially, but the company's leadership said the results show that their "turnaround plan" is beginning to take effect, especially for the older Pizza Inn brand, a news release said.
- Consolidated revenue decreased 13.8 percent to $13.2 million, compared with $15.3 million in the first quarter of fiscal 2017.
- Pie Five system-wide retail sales and comparable store retail sales both decreased 17.3 percent year over year.
- Company-owned Pie Five stores' average weekly sales increased 4.6 percent year over year.
- Pizza Inn domestic comparable store retail sales increased 1.4 percent year over year, while total domestic retail sales dropped 0.9 percent.
- Company-owned Pie Five operating cash flow decreased $0.1 million year over year.
- On a fully diluted basis, the loss was 3 cents per share for the first quarter of fiscal 2018, compared with a loss of 14 cents per share in the prior year.
- Adjusted EBITDA of $400,000 was $600,000 greater year over year.
"Our turnaround plan for RAVE is on course, with Pizza Inn showing positive comparable sales and unit growth in the pipeline, while Pie Five successfully exits underperforming markets and works to improve its underlying unit economics," Rave CEO Scott Crane said in the release. "In addition, we have made great strides in streamlining corporate overhead to become more efficient operationally while improving the bottom line."
Net loss improved by $1.1 million to $400,000 for the first quarter of fiscal 2018 compared with $1.5 million for the same quarter a year ago. The company said this was primarily due to closure of underperforming company-owned Pie Five units, recognition of deferred franchise fees, and reductions to general and administrative expenses. Net reduction of one Pie Five restaurant during the quarter brought the total to 83 units open at the end of the quarter.