News

With blistering Q2 for Pie Five, Rave CEO promises leadership changes

File photo of recently named Rave Restaurant Group CEO Brandon Solano, who replaced former leader, Bob Bafundo in October 2019.

February 12, 2020

Promising to beef up leadership in "underperforming areas" of its business, the recently named CEO of double-pizza brand company, Rave Restaurant Group, reviewed Q2 earnings that were dragged down by Pie Five's 11% drop in retail sales for the period that ended Dec. 29. Though sister brand, Pizza Inn, turned in a 2.4% sales increase for the quarter, revenue fell from $2.8 million in the previous year's quarter to $0.4 million this latest earnings period, a news release said.  

Other relevant highlights from the company's Q2 financials include: 

• Net income dropped to $14,000, compared to $0.2 million the previous year's quarter. 
• Net income on a fully diluted basis dropped 2 cents a share to $0.00 per share, compared to 2 cents the prior year's quarter. 
• Adjusted EBITDA fell $0.1 million from the same period of the prior fiscal year.
• Cash and cash equivalents fell $0.3 million to $2 million.  

Additionally, Pizza Inn and its PIE concept stores domestically totaled 153 at the end of the quarter, while Pizza Inn international unit count finished at 34. Pie Five systemwide unit count finished at 53. 

"As we work through our transformation, we're making strategic investments in new leadership that will address underperforming areas of our business and create operational efficiencies that will lead to a stronger business model," CEO Brandon Solano said in the release. "The ongoing improvements in operations, marketing and menu innovation will put us in position to drive long-term value and consistency for our consumers and shareholders. …

"Although Pie Five isn't where we want it to be today, we are unwavering in our commitment to rebuild the brand and confident we have the right leadership team in place to put us back on the right track. We see a huge opportunity to reposition the brand and better articulate the overall Pie Five brand promise to consumers. We also have some menu work to do that will solidify Pie Five as a disruptor and leader in the fast-casual industry."

Pizza Inn results have continued to please the company, Solano said, adding that the brand opened its first location in partnership with the entertainment center company, Kidzania.