News

Pie Five's average weekly sales up 33%

November 12, 2014

Pizza Inn Holdings reported financial results for the first quarter of fiscal 2015 ended Sept. 28.

Highlights include:

• Pizza Inn domestic comparable store sales increased 4.6 percent from the same period of the prior year.
• Pie Five comparable store sales increased 17 percent year over year.
• Pie Five system-wide total retail sales increased 119 percent, and average weekly sales increased 32.6 percent, year over year.
• Total consolidated revenue increased 12.3 percent year over year.
• Net loss improved by $0.1 million over the same quarter of the prior year to a loss of $0.3 million.

According to a news release, the improvement in net loss was due primarily to increased franchise income and company-owned store earnings from Pie Five, as well as a reduction in pre-opening expenses attributable to growth of the Pie Five brand.

"We are steadily improving performance as we simultaneously make intelligent investments in people and infrastructure to ensure a sustainable, scalable enterprise," CEO Randy Gier said in the release. "We are particularly pleased with the strength of the underlying business metrics, which we believe clearly indicate we are on the right path."

Pizza Inn

Gier said the Pizza Inn brand has achieved its strongest comp store growth in several years, up 4.6 percent from the prior year.

"We have worked for many months with our franchisees to address the fundamentals of the business. It is rewarding and encouraging to see these great results," he said.

Pie Five

For Pie Five, systemwide retail sales, which includes franchise and company-owned restaurants, increased 119 percent when compared to the same period in the prior year. This was driven by a 69.2-percent increase in average units open and a 32.6-percent increase in the systemwide average weekly sales. The increase in average weekly sales was due to a strong sales increase in existing company-owned restaurants and the higher-than-average sales levels of new franchised and company-owned restaurants.

Comparable store sales, which in the first fiscal quarter of 2015 represented only company-owned restaurants, increased 17 percent. 

Gier also attributed the performance to concept enhancement and an improvement in real estate site selection.

Development

Six new Pie Five restaurants were opened by the company and franchisees Q1, while two franchise restaurants closed as part of the conversion of a franchise market to a company-owned market, to bring the fiscal quarter-end total to 24 restaurants. In the Pizza Inn system, franchisees opened one new restaurant for the quarter while closing three restaurants, ending the fiscal quarter at 251 total Pizza Inn Company-owned and franchised restaurants world-wide.

The company expects to end FY 2015 with 60 to 70 total restaurants open in the Pie Five system.

"In the current quarter ending in December, we expect the opening of two company restaurants in Houston, and five new franchise restaurants across our expanding franchisee base," Gier said. "As we expand, we continue to seek out quality sites. Although quality real estate is in high demand and short supply, we believe that holding out for quality locations is the best long-term strategy."