Pizza Inn, Pie Five revenues drop in Q3
Rave Restaurant Group, parent company of Pie Five and Pizza Inn, reported today that its total consolidated revenue decreased 7.7 percent to $14.1 million compared to $15.3 million in the third quarter of fiscal 2016.
CEO Scott Crane is hoping to help the company make a comeback, however.
"We are taking a purposeful approach to improving the overall financial performance of the company by withdrawing from under-performing markets," he said in a company press release. "In addition, we will be introducing new initiatives that will add occasions and increased incidence."
In the third quarter of fiscal 2017, five franchised Pie Five restaurants opened, while nine franchised and nine company restaurants closed, bringing the quarter-end total unit count to 86 restaurants.
"We continue to see opportunities for traditional and non-traditional development," said Crane. "Our throughput makes Pie Five a great option for airports. We just opened our second airport location at BWI Airport."
Other highlights included:
- Pie Five comparable store retail sales decreased 15.8 percent from the same period of the prior year.
- Pie Five system-wide retail sales increased 0.6 percent, while average weekly sales declined 12.3 percent, year over year.
- Pizza Inn domestic comparable store retail sales increased 0.1 percent from the same period of the prior year, while total domestic retail sales increased by 2.9 percent.
- Net loss of $2 million was $0.7 million greater than the same quarter of the prior year primarily due to loss on sale of assets, increased general and administrative expenses, and decreased sales.
- On a fully diluted basis, the loss was $0.18 per share for the third quarter of fiscal 2017, compared to a loss of $0.12 per share for the same period of the prior year.
- Adjusted EBITDA of ($1) million was $.7 million less than the same quarter of the prior year.
- Company-owned Pie Five operating cash flow decreased $0.3 million from the same period of the prior year.
- Net reduction of thirteen Pie Five restaurants during the quarter brought the total Pie Five restaurants open at the end of the quarter to 86.
"After a year of challenging sales performance, we are evaluating various elements of the concept from both a service and product standpoint that we believe will ultimately better service the wants of our customers," Crane said.
Topics: Operations Management