Rave grows annual profit while restaurant comparable sales weaken

Rave Restaurant Group ($RAVE) reported annual net income of approximately $2.9 million, compared with $2.7 million a year earlier. Fourth-quarter revenue increased 8.8% to $3.4 million, and adjusted EBITDA rose 4.9% to around $1.2 million. Quarterly net income fell 6.2% to approximately $0.8 million, with earnings per share unchanged at $0.06.

Underlying restaurant trends were weaker than the revenue headline: comparable sales fell 2.8% at Pizza Inn and 17.3% at Pie Five. The company ended the period with $1.1 million in cash and $12.5 million in short-term investments. The release therefore combines modest growth in annual profit and quarterly revenue with declining sales at comparable restaurants, an important distinction when assessing the health of its operating brands.

Sources:

• Rave Restaurant Group — quarterly and annual results