Pie Five, Pizza Inn Q3 results show bleeding continues, but net loss narrows
Rave Restaurant Group, parent company of Pie Five and Pizza Inn, reported that its 2018 Q3 financials showed a narrowing of the company net loss, although the brands are still struggling. Pizza Inn's domestic comparable sales grew 2.3 percent from last year, while total domestic retail sales dropped 3.6 percent, according to a news release. Meanwhile, Pie Five comparable sales fell 12.6 percent year over year, with total retail sales down 19.6 percent.
Other 2018 Q2 highlights include:
- Total consolidated revenue down 59 percent to $2.7 million quarter over quarter.
- Company-owned Pie Five average weekly sales decreased 10.9 percent.
- Net loss improved by $1.5 million to $0.5 million this quarter, compared to $2 million last year.
- The loss per share on a fully diluted basis was $0.03 compared to a loss of $0.18 the prior-year quarter.
- Adjusted EBITDA of ($0.2) million was $0.4 million better than the same quarter of the prior year.
- Company-owned Pie Five operating cash flow increased $0.1 million from the same period of the prior year.
"Last quarter was transitional as we streamlined operations and strengthened both Rave brands by prioritizing revenues and profitability for our franchisees over growth," Rave Restaurant Group CEO Scott Crane, said in the release. "Our leadership team continues to work on efficiency and effectiveness across all operations. Our targeted plan is progressing towards a solid foundation for future growth."
Pie Five had a net reduction of two stores in Q3, for a total of 78 at quarter's end. It also discontinued its Norco distribution division and revised its arrangements with third-party suppliers and distributors of food, equipment and supplies. The release said that as a result of those changes the sale of food, equipment and supplies is no longer recognized as revenue and the cost of such items is no longer included in cost of sales.