Rave Restaurant Group, Inc. achieved an earnings per share (EPS) of 6 cents in the fourth quarter of fiscal 2024, marking a 50% increase from the previous year.
The full-year EPS stood at 17 cents, showcasing a substantial 70% uptick compared to the fiscal 2023 period.
Rave Restaurant’s Revenue Performance
During the fiscal fourth quarter, Rave Restaurant generated revenues of $3.4 million, marking a $0.3 million increase from the previous year.
The overall revenue growth was slightly dampened by lower revenues from the Pie Five Franchising segment. However, for the full fiscal year, revenues amounted to $12.2 million, indicating a 2.2% improvement from fiscal 2023.
This robust performance drove the company’s stock value, witnessing nearly a 20% surge in recent trading sessions.
Rave Restaurant’s Segmental Insights
Rave Restaurant operates through two primary segments — Pizza Inn Franchising and Pie Five Franchising.
In the last quarter, the domestic comparable store retail sales of Pizza Inn Franchising decreased by 1.5%, while that of Pie Five Franchising dropped by 10.6% from the previous year.
Noteworthy unit counts at the end of the fiscal fourth quarter included 105 domestic units and 24 international units for Pizza Inn, along with 20 domestic units for Pie Five.
For the full fiscal year, Pizza Inn Franchising saw revenues of $10.3 million, a 4.9% increase from fiscal 2023, primarily driven by enhanced supplier and distributor incentives. In contrast, Pie Five Franchising experienced a revenue decline of 8.9% in fiscal 2024 due to various factors.
Rave Restaurant wrapped up fiscal 2024 with strong financials, boasting a 43.8% increase in operating income compared to the prior year. The net income for the year stood at $2.5 million, showcasing a significant 53.3% surge from the previous fiscal.
Financial Stability and Growth Prospects
With a substantial rise in adjusted EBITDA and improved liquidity, the company’s operational efficiency and financial prospects are looking bright post the fiscal year-end.
Outlook and Positivity
As Rave Restaurant aims to revamp a significant portion of its restaurant outlets by the end of fiscal 2025, there is a sense of optimism among investors regarding the stock’s potential.
The recent rollout of an advanced online ordering platform is expected to further fuel the company’s digital business, offering a seamless ordering experience and integration with third-party delivery services.
While challenges persist, such as lower revenues from specific segments and declining retail sales, the overall trajectory seems positive for Rave Restaurant following robust fiscal growth.
