Rave Restaurant reports Q3 EPS 5c vs 4c last year
Q3 Financial Performance: RAVE Restaurant Group reported a Q3 revenue of $2.966 million, slightly up from $2.962 million last year, marking their 20th consecutive quarter of profitability.
New Promotion Initiative: The company introduced a value-driven promotion called I$8 at Pizza Inn, which has led to over a 20% increase in year-over-year sales at the tested locations, with plans to expand the promotion to more stores in Q4.
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- Financial Highlights: RAVE Restaurant's Q2 GAAP EPS stands at $0.04 with revenue of $3.04 million, reflecting a 5.9% year-over-year growth, indicating a stable growth trend in the restaurant sector despite ongoing economic challenges.
- Pizza Inn Expansion: The domestic unit count for Pizza Inn finished the quarter at 97, including 82 buffet locations, with three new buffet openings and no closures, demonstrating the brand's ongoing expansion and stable customer demand in the market.
- International Market Performance: Pizza Inn's international unit count ended the quarter at 19, showcasing the company's penetration in global markets, although international expansion faces various market challenges.
- Pie Five Status: Pie Five's domestic unit count stood at 16 at the end of the quarter, reflecting robust operations under the multi-brand strategy, despite facing intense market competition.
- Net Income Growth: RAVE Restaurant Group reported a net income of $0.6 million for Q2 2026, reflecting a 4.9% increase year-over-year, which reinforces market confidence in the company's sustained profitability.
- Revenue and EBITDA Increase: Total revenue reached $3.0 million in Q2, a 6.0% increase from the prior year, while adjusted EBITDA rose to $0.9 million, up 5.3%, indicating ongoing improvements in operational efficiency and profitability.
- Divergent Store Performance: Pizza Inn's domestic comparable store sales increased by 2.5%, contrasting with a 1.5% decline for Pie Five, highlighting Pizza Inn's ability to maintain growth in a competitive market, thereby strengthening its brand position.
- Debt-Free Financial Position: As of December 28, 2025, the company reported cash and short-term investments totaling $10.9 million with no debt, showcasing RAVE Restaurant Group's financial robustness and providing a solid foundation for future expansion.
Stock Performance: Rave Restaurant Group, Inc. (RAVE) shares rose 20.6% following their quarterly results, significantly outperforming the S&P 500, although the stock's growth slowed to 3.5% over the past month.
Financial Growth: The company reported a 5.3% increase in revenue to $3.2 million and a 22.6% rise in net income to $0.6 million for the first quarter of fiscal 2026, driven primarily by Pizza Inn's strong performance.
Brand Performance Divergence: Pizza Inn experienced a 9.4% increase in franchise revenue and an 8.1% rise in comparable store sales, while Pie Five faced a 22.7% decline in franchise revenue and a 9.1% drop in comparable store sales.
Future Outlook: RAVE did not provide specific financial guidance but indicated expectations for moderate growth at Pizza Inn and modest declines at Pie Five, with no significant corporate changes or restructuring reported during the quarter.
Research Reports Overview: The Zacks Research Daily highlights new reports on 16 major stocks, including American Express, NextEra Energy, and Arista Networks, along with two micro-cap stocks, MIND Technology and Rave Restaurant Group, showcasing unique insights into smaller companies.
Market Insights and Stock Performance: Key findings include American Express's strong growth despite rising costs, NextEra Energy's expansion in renewable projects amid regulatory challenges, and Arista Networks' solid demand but high customer concentration risks, while MIND Technology and Rave Restaurant demonstrate significant performance improvements in their respective sectors.
Financial Performance: RAVE Restaurant Group reported a net income of $0.7 million for Q3 2025, marking a 10.4% increase year-over-year, with total revenue remaining stable at $3.0 million and adjusted EBITDA rising by 13.2% to $1.0 million.
Operational Initiatives: The company introduced a new promotion at Pizza Inn that significantly boosted sales, while operational improvements at Pie Five led to increased efficiency and record sales in several locations during the quarter.

Board Nominations: Engaged Capital has nominated Charlie Morrison and Nicole Portwood for election to the Board of Directors of Portillo's Inc. at the 2025 Annual Meeting, citing their extensive experience in restaurant operations and marketing as essential for improving company performance.
Company Challenges: Despite Portillo's strong brand and growth potential, the company is facing issues such as outdated operations and ineffective marketing, which Engaged Capital believes can be resolved through strategic leadership changes and targeted initiatives.







