Rave Restaurant 2025 Q4 Earnings Mixed Results as Net Income Sets 18-Year High

Rave Restaurant Group, Inc. reported its fiscal 2025 Q4 earnings on September 25, 2025. While revenue and adjusted EBITDA declined year-over-year, the company recorded a new 18-year high for Q4 net income and highlighted strong performance in its Pizza Inn segment. The CEO expressed confidence in the brand’s growth trajectory, but no specific earnings guidance was provided.

Revenue
Total revenue for the quarter decreased by 6.0% to $3.15 million in 2025 Q4, compared to $3.35 million in 2024 Q4. The decline was driven by a 6.0% year-over-year drop in top-line revenue, reflecting a 13-week period in 2025 versus a 14-week period in the prior year. The Pizza Inn domestic comparable store retail sales increased by 6.3% in the fourth quarter, while Pie Five domestic comparable store retail sales fell by 7.2%.

Earnings/Net Income
Rave Restaurant’s EPS remained flat at $0.06 in 2025 Q4 compared to $0.06 in the prior year period. Net income declined by 3.8% to $847,000 from $880,000 in 2024 Q4, yet it marked a new 18-year high for Q4 net income. Despite the slight decline, the company's profitability continued with a 21st consecutive quarter of positive earnings, driven by effective cost management and promotional success.

Price Action
The stock price of Rave Restaurant has dropped 3.40% during the latest trading day, has edged down 2.57% during the most recent full trading week, and has climbed 4.28% month-to-date.

Post-Earnings Price Action Review
Despite the slight dip in revenue and EBITDA, the company’s ability to maintain profitability and set a new Q4 net income record amid a challenging operating environment is notable. The recent stock price volatility reflects the mixed investor sentiment, with the month-to-date gain suggesting some optimism about the company’s strategic initiatives and promotional success. However, the short-term price decline may reflect market skepticism over the lack of detailed guidance.

CEO Commentary
Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc., highlighted the company's 21st consecutive quarter of profitability, emphasizing the success of the "I ate at Pizza Inn" $8 value promotion, which drove a 30.6% year-over-year sales lift and a 34.7% traffic increase in participating stores. He noted the promotion’s continuation into fiscal 2026 and expansion plans, while non-participating stores saw over 5% same-store sales growth via a summer salad bar promotion. Solano expressed optimism about Pizza Inn's growth trajectory, citing four consecutive years of net buffet unit count increases, 11 completed store reimages, and a new store pipeline with 31 stores under contract, including 12 for fiscal 2026.

Guidance
The company did not provide specific quantitative guidance for revenue, EBITDA, or earnings per share for fiscal 2026. Instead, the CEO expressed confidence in the brand’s ability to drive traffic and sales through targeted promotions and store development. Management’s focus appears to be on expanding successful initiatives like the “I ate at Pizza Inn” promotion and leveraging reimage efforts to boost long-term growth.

Additional News
In recent weeks, RAVE Restaurant Group announced the opening of its first Pizza Inn in Egypt and its eighth unit in Saudi Arabia during the fourth quarter of fiscal 2025. Internationally, these developments signal the company’s commitment to expanding its global footprint. Domestically, the brand plans to open 12 new Pizza Inn locations in fiscal 2026, with 31 stores under contract in total. The CEO also highlighted that 11 store reimages were completed in 2025, with positive results reinforcing the strategy. Additionally, the company opened new Pizza Inn buffets in North Carolina and Oklahoma during the quarter. Financially, cash and short-term investments increased by $2.1 million in fiscal 2025, reaching $9.9 million by June 29, 2025.