10-Q · May 7, 2026
Rave Restaurant Group's Q3 2026 results showed steady revenue of $3M, consistent with previous quarters, with a slight decline in EPS to $0.04 from $0.05 in the prior quarter. However, total retail sales for the Pizza…
Earnings analysis · 10-K
RAVE earnings analysis
Filed September 24, 2026 · Our reading of the company's report
The latest report
RAVE delivered a stronger fiscal 2026, with revenue up to $12.910 million, diluted EPS reaching $0.20, adjusted EBITDA increasing to $3.948 million, and Pizza Inn providing the primary growth engine. However, the…
Read full summary
RAVE delivered a stronger fiscal 2026, with revenue up to $12.910 million, diluted EPS reaching $0.20, adjusted EBITDA increasing to $3.948 million, and Pizza Inn providing the primary growth engine. However, the improvement is offset by a 23.8% decline in Pie Five retail sales, continued unit closures, and a newly disclosed CEO harassment and compensation dispute requiring an independent investigation. The company has substantial liquidity and modest capital needs, but provided no quantitative annual revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.2
What stood out
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Revenue and Operating Income Improved
Revenue increased to $12.910 million in fiscal 2026 from $12.039 million in fiscal 2025 and $12.150 million in fiscal 2024. Operating income also rose from $2.929 million in fiscal 2024 to $3.247 million in fiscal 2025 and $3.474 million in fiscal 2026.
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Three-Year EPS Growth
Diluted EPS increased to $0.20 in fiscal 2026 from $0.19 in fiscal 2025 and $0.17 in fiscal 2024, while net income increased to $2.878 million from $2.702 million and $2.473 million, respectively.
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Pizza Inn Remains Core Growth Driver
Pizza Inn franchise revenue increased 11.2% to $11.995 million, supported by higher supplier and distributor incentives and domestic royalties. Domestic Pizza Inn retail sales increased 3.4% to $112.125 million, while average Buffet Units open increased from 77 to 80.
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Profitability and Operating Cash Flow Rose
Adjusted EBITDA increased to $3.948 million in fiscal 2026 from $3.583 million in fiscal 2025, and cash provided by operating activities increased to $3.552 million from $3.395 million.
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Strong Liquidity Position
The company held $12.487 million of U.S. Treasury bills at June 28, 2026, up from $7.024 million a year earlier, and reported sufficient liquidity to fund fiscal 2027 operations and planned capital expenditures from cash on hand and operating cash flow.
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Limited Capital Requirements
Capital spending remained limited at $49 thousand in fiscal 2026, and the company repurchased no shares during fiscal 2026. The company has not historically paid dividends and currently has no intention to pay them.
What to watch
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CEO Dispute and Governance Uncertainty
The CEO submitted a workplace harassment and discrimination complaint on August 31, 2026, and the company engaged outside counsel on September 1, 2026 for an independent investigation. The CEO’s current base salary is $370,000, while he described a requested compensation increase reaching $2.3 million annually by fiscal 2029 as part of the dispute; the company has not yet received notice from the Texas Workforce Commission and cannot assess the claims.
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Pie Five Contraction Continues
Pie Five domestic retail sales declined 23.8% to $8.600 million in fiscal 2026 from $11.279 million, while average units open fell from 20 to 15 and ending domestic units declined to 13 from 17. Management stated that Pie Five units will decrease in future periods.
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Supplier and Geographic Concentration
The company had revenue concentration with one supplier equal to approximately 14.0% of total revenues in fiscal 2026. The business also remains concentrated geographically: domestic restaurants were located in 16 states, with North Carolina, Texas, Arkansas and South Carolina representing approximately 21%, 18%, 11% and 10% of domestic units, respectively.
Management's outlook
No quantitative annual revenue or EPS guidance was provided in the 10-K. Management stated that Pizza Inn units are expected to increase modestly in future periods, while Pie Five units are expected to decrease; further outlook may be discussed in the earnings press release or call.
Earlier filings 4
10-Q · February 5, 2026
Rave Restaurant Group, Inc. reported stable financial performance in its fiscal second quarter of 2026 with revenues of $3 million, matching the prior year and previous quarter. EPS decreased slightly to $0.04,…
10-Q · November 6, 2025
Rave Restaurant Group, Inc. reported stable revenues of $3.2 million for Q4 2025, showing a modest increase compared to $3.1 million in the same quarter last year. The company achieved an EPS of $0.06, which is…
10-K · September 25, 2025
Rave Restaurant Group, Inc. is focusing on optimizing its franchise operations primarily through its Pizza Inn and Pie Five units, seeing a modest increase in revenue driven by the Pizza Inn brand despite a significant…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.