RAVE Restaurant Group, Inc. — Fiscal Year 2026 Earnings Summary

Financial Performance

• Total revenue for fiscal 2026 increased $0.9 million to $12.9 million, up from $12.0 million in fiscal 2025; Q4 revenue increased $0.3 million to $3.4 million, an 8.8% year-over-year increase.
• Net income for fiscal 2026 rose $0.2 million to $2.9 million ($0.20 per diluted share) compared to $2.7 million ($0.19 per share) in fiscal 2025; Q4 net income was $0.8 million, a 6.2% decrease from the prior year, with Q4 earnings per share flat at $0.06.
• Income before taxes increased $0.3 million to $3.9 million in fiscal 2026 from $3.6 million in fiscal 2025; Q4 income before taxes decreased 7.3% to $1.1 million.
• Adjusted EBITDA for fiscal 2026 reached $3.9 million, a $0.3 million increase from the prior year; Q4 Adjusted EBITDA was $1.2 million, a 4.9% increase.
• Operating income for fiscal 2026 was $3.5 million, representing a nearly 17% compound annual growth rate over the past five years.
• Cash provided by operating activities increased $0.2 million to $3.6 million in fiscal 2026 from $3.4 million in fiscal 2025.
• Cash and short-term investments totaled $13.6 million as of June 28, 2026, an increase of $3.7 million during the fiscal year; cash and cash equivalents were $1.1 million, and short-term investments were $12.5 million.
• Total assets increased to $19.5 million from $16.6 million; total liabilities decreased to $2.2 million from $2.4 million; shareholders' equity increased to $17.3 million from $14.2 million.
• Deferred revenues increased to $865,000 ($364,000 current, $501,000 non-current) from $765,000 ($308,000 current, $457,000 non-current) in the prior year.

Guidance and Future Outlook

• Pizza Inn aims for more significant store growth in fiscal 2027 following five consecutive years of modest growth.
• A 10-buffet development agreement was signed with a multi-brand operator; the first five restaurants are anticipated to open in fiscal 2027.
• One new Pizza Inn restaurant opened in August 2026, with additional locations planned.
• New products are scheduled to roll out in December with increased media support.
• Management expressed optimism regarding the strength of the development pipeline and continued profitability.

Business Segments and Product Lines

• Pizza Inn domestic comparable store retail sales decreased 2.8% in Q4 2026 (vs. +6.3% in Q4 2025) but increased 2.4% for the full fiscal year 2026.
• Pie Five domestic comparable store retail sales decreased 17.3% in Q4 2026 (vs. -7.2% in Q4 2025) and decreased 9.9% for the full fiscal year 2026.
• RAVE total domestic comparable store retail sales increased 1.3% for the full fiscal year 2026.
• Pizza Inn domestic unit count finished the quarter at 91; international unit count finished at 18.
• Pie Five domestic unit count finished the quarter at 13.
• Pizza Inn buffet restaurant count increased by one net restaurant in fiscal 2026, marking the fifth consecutive year of buffet unit count growth.
• The company launched a "Pepp Rally" promotion with Dr. Pepper and the Southeastern Conference to promote Pepp Rally pizza and offer tickets to the SEC championship game.

Market and Competitive Landscape

• The company operates franchise, license, and supply models for Pie Five and Pizza Inn brands domestically and internationally.
• Pizza Inn is positioned as a buffet concept featuring house-made dough, 100% whole milk mozzarella, fresh ingredients, and signature sauce.
• Pie Five is positioned as a fast-casual brand offering personalization, sophisticated ingredients, and fresh daily baking.

Risks and Challenges

• Forward-looking statements involve risks including the ability to successfully open new locations, the accuracy of assumptions regarding positive trends, and future economic, competitive, and market conditions.
• The company faces the risk that assumptions underlying forward-looking statements may be inaccurate and that objectives and plans may not be achieved.

Management Commentary and Tone

• CEO Brandon Solano highlighted the fifth consecutive fiscal year of buffet store count and same-store sales growth at Pizza Inn and expressed excitement for the upcoming fiscal year's expansion.
• CFO Jay Rooney noted that pre-tax profit of $3.9 million is the highest level seen in the past 23 years and praised the team for flowing revenue to net income.
• The tone regarding fiscal 2026 results was described as pleased, emphasizing record profitability and operational efficiency.

Other Key Points

• On August 31, 2026, CEO Brandon Solano formally complained via email to the Audit Committee Chairman regarding workplace harassment and discrimination by the Board of Directors related to a failure to increase his annual base salary.
• The Board engaged the Hagan Law Group on September 1, 2026, to investigate the allegations.
• No dividends or stock buybacks were reported for fiscal 2026; treasury stock purchases were $0 in fiscal 2026 compared to $1.2 million in fiscal 2025.
• The company filed its Annual Report on Form 10-K on September 24, 2026.