News

Pie Five’s weekly sales up 25% year-over-year

September 25, 2014

Pizza Inn Holdings reported its Q4 and FY financial results earlier this week. On the quarter, the company’s Pizza Inn concept experienced a 1.5-percent increase in sales from the previous year.

Its sister brand, Pie Five, turned in a comp-store sales increase of 12.9 percent over the prior year. Additionally, Pie Five’s company-owned average weekly sales per store were up 25.2 percent year-over-year.

For the fiscal year, Pizza Inn’s domestic sales were down 1.1 percent. Conversely, Pie Five’s company-owned restaurant sales increased 33 percent, with the average weekly sales per store up 12.4 percent year-over-year.

The company also continued to invest in infrastructure to support future Pie Five growth, which contributed to an adjusted EBITDA loss of $0.5 million, a decrease of $1.1 million compared to prior year.

"Fiscal 2014 was an investment year as we continued to build the talent and infrastructure to effectively grow both of our restaurant brands. That investment is reflected in the losses recorded for the last several quarters," CEO Randy Gier said in a news relesae. "We are very pleased to see the improving financial performance each of the last three quarters, and especially pleased with the most recent quarter results which we believe reflect our turning the corner on this investment of resources."

Pizza Inn

Gier said Pizza Inn has been working on improving quality, consistent operating standards and aligned marketing programs.

"We have terrific franchise leaders with whom we are working very closely to restore growth to Pizza Inn. Comparable store sales trends have strengthened each of the last four quarters, with the most recent quarter reporting the first year over year increase in nearly three years," he said.

The improved sales and profitability has slowed the rate of restaurant closures, he said, while interest in new-builds is picking up.

"We have only begun this journey, but appreciate the dedication of all of our franchisees to the work that is required to achieve excellence for our flagship brand," Gier said.

Franchisees opened 24 new Pizza Inn restaurants for the year while closing 21 restaurants, ending the fiscal year at 253 total Pizza Inn company and franchise stores.

Pie Five

Pie Five, on the other hand, is reaping the benefits of two years spent refining the concept, improving site selection, enhancing marketing productivity and establishing a scalable operating process, Gier said.

"The continued improving results are a direct reflection of that work. We are not only seeing strong positive comparable store sales in our existing restaurants, we are also seeing newer restaurants opening that are sustaining at higher sales levels than the previous restaurants. This is leading to an acceleration of new restaurant openings and additional franchise signings," he said.

Nine new Pie Five restaurants were opened by the company and franchisees in fiscal 2014, including one in the fourth quarter, to bring the fiscal year-end total to 20 stores. 

During fiscal 2014, the company signed nine new franchise development agreements to develop up to 131 Pie Five restaurants and has signed two additional development agreements during the first quarter of fiscal 2015.  The company currently has Pie Five franchise restaurant development commitments for a total of up to 229 restaurants.