Rave Restaurant shares surge 21.77% intraday after Q1 net income jumps 22.6% and Pizza Inn sales rise 8.1%.

Rave Restaurant Group surged 21.77% intraday after reporting robust fiscal Q1 2026 results, including a 22.6% year-over-year increase in net income to $0.6 million, 23.5% higher operating income, and a 15.3% rise in Adjusted EBITDA to $0.83 million. The company highlighted an 8.1% growth in Pizza Inn domestic comparable store sales, disciplined cost management, and a $10.6 million cash balance, reinforcing its 22nd consecutive quarter of profitability. Management emphasized successful value-driven promotions and expansion plans, including a media-supported I$8 promotion rollout in January 2026, which analysts view as a catalyst for post-holiday traffic. These positive earnings surprises and strategic initiatives aligned with the stock’s sharp intraday rally, signaling investor confidence in the company’s operational execution and growth trajectory.