News

Q2 sales drop at Pie Five, Pizza Inn

The decrease in Pie Five average weekly sales was primarily due to entry into new company markets and several franchise stores that opened with unusually high volume in the prior year, according to the company.

January 12, 2016

RAVE Restaurant Group Inc has announced preliminary results for the second quarter of fiscal 2015 ended Dec. 27, 2015. RAVE is the parent company of both Pie Five Pizza Co. and Pizza Inn, and runs on a fiscal calendar beginning July 1 of each year.

The company reported that Pizza Inn domestic comparable store sales decreased 1.7 percent from the same period of the prior year, and Pie Five comparable store sales decreased 1.6 percent from the same period of the prior year. Pie Five system-wide total retail sales increased 151 percent from the same period of the prior year, and it opened 14 new restaurants in the quarter, bringing the total to 82 restaurants.

Both Pizza Inn and Pie Five experienced low single-digit comparable same store sales declines in the second fiscal quarter.  

"Both brands were overlapping strong prior year results," said Randy Gier, CEO of Rave Restaurant Group Inc. "We are addressing our opportunities to accelerate growth at each brand."

For Pie Five, system-wide retail sales, which includes franchise and company-owned restaurants, increased 151 percent for the quarter when compared to the same period in the prior year driven by an 180-percent increase in average units open and a 9.9-percent decrease in the system-wide average weekly sales.

Comparable store sales, which in the second fiscal quarter of 2015 represented both company-owned and franchised restaurants, decreased 1.6 percent. Pie Five was overlapping significant, double digit comparable store gains in the prior year.  

In addition, Pie Five has experienced some cannibalization from new restaurants in the Dallas market, which makes up a disproportionate share of the current comparable store base. The decrease in Pie Five average weekly sales was primarily due to entry into new company markets and several franchise stores that opened with unusually high volume in the prior year. Eleven new franchised restaurants and three new company-owned restaurants opened in the second quarter fiscal 2015, bringing the fiscal quarter-end restaurant count to 82 Pie Five restaurants.

The company currently has Pie Five franchise restaurant development commitments for more than 400 franchise restaurants. Pie Five expects to hit the 100 mark before the end of FY16.

Pizza Inn domestic comparable store sales decreased 1.7 percent from the same period in the prior year.