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RAVE's Pie Five, Pizza Inn report strong sales for Q4

RAVE Restaurant Group, parent company of Pizza Inn and Pie Five, reported this week that both consolidated revenues and store retail sales increased during the fourth quarter of fiscal 2015.

September 25, 2015

RAVE Restaurant Group, parent company of Pizza Inn and Pie Five, reported this week that both consolidated revenues and store retail sales increased during the fourth quarter of fiscal 2015. Both pizza brands had a successful quarter with Pie Five system-wide total retail sales increasing 168 and percent Pizza Inn domestic comparable store retail sales increasing .2 percent from the same period of the prior year, while total domestic retail sales increased by .7 percent

"This completes the fifth consecutive quarter of positive comp sales for our heritage brand, which is a significant accomplishment as we now overlap positive comp sales from the prior year," CEO Randy Gier said. "Similarly, Pie Five has delivered strong positive comps over positive comps, a direct reflection of the affinity that consumers are showing for the brand and concept. Comp trends for both concepts have flattened out in the current quarter, with Pie Five slightly positive and Pizza Inn slightly negative, as we are comparing against particularly high comps in the prior year and due to variances in timing of Pie Five advertising and the absence of a year over year price increase."

Q4 highlights are below:

• Total consolidated revenue increased 26.7 percent to $13.9 million compared to $10.9 million in the fourth quarter of fiscal 2014.
• Pie Five comparable store retail sales increased 6.7 percent from the same period of the prior year.  
• Net loss of $0.6 million was $0.2 million greater than the same quarter of the prior year primarily due to increased pre-opening expenses.
• Adjusted EBITDA increased by $0.2 million over the same quarter of the prior year to a positive $0.2 million.
• Net addition of 14 Pie Five restaurants opened during the quarter, bringing the total Pie Five restaurants open at the end of the year to 54.

Annual highlights:

• Total consolidated revenue increased 14.2 percent to $48.2 million compared to fiscal 2014.
• Pie Five comparable store retail sales increased 11.2 percent from the prior year.
• Pie Five system-wide total retail sales increased 131 percent, and average weekly sales increased 19.6 percent, year over year.
• Pizza Inn domestic comparable store retail sales increased 4.1 percent from the prior year, while total domestic retail sales increased by 0.8 percent.
• Net loss of $1.8 million, including $0.3 million of impairment charges and $0.7 million of pre-opening expenses, was $0.2 million greater than prior year.
• Adjusted EBITDA increased by $0.9 million over prior year to a positive $0.6 million.
• Net addition of 34 Pie Five restaurants opened during the year bringing the total Pie Five restaurants open at the end of the year to 54.
• Pie Five signed seven new franchisees with commitments to build up to 175 restaurants in 13 states.

"The $0.9 million improvement to achieve a positive adjusted EBITDA is a significant milestone in our journey," Gier said. "Notably, we've built talent and put in place significant infrastructure to support the scaling of Pie Five through both company and franchise restaurant development."