US-based chain Rave Restaurant Group has reported an 18.5% decline to $12.3m in total consolidated revenue for the fiscal year (FY) ending 30 June.
The company currently owns, operates and franchises Pie Five Pizza and Pizza Inn restaurant brands.
Net income of the company dropped by $2.7m to a net loss of $0.8m during FY2019, compared to $1.9m net income in fiscal 2018.
The decrease was due to a $3.3m decreased tax benefit partially offset by a $0.2m improvement in continuing operations before taxes, as well as exclusion of the prior year’s $0.4m in net loss from discontinued operations.
Adjusted EBITDA of the restaurant company increased $0.6m to $1.2m.
During the fourth quarter, total revenue increased to $3.1m and the company recorded a net loss of $0.8m. Total comparable store domestic retail sales decreased by 0.7%.
RAVE Restaurant Group president Bob Bafundo said: “Last quarter, we continued to make important improvements in leadership and overall strategy at both RAVE brands.
“We continue to focus on the two primary levers for our business – growing same-store sales and adding new restaurants. By adding the right talent and growing each brand, we believe we are clearly setting the path for future success.”
Additionally, comparable store retail sales of Pizza Inn increased by 2.6% from the previous year while comparable store retail sales of Pie Five restaurants decreased by 4.4%.
Domestic retail sales of Pizza Inn increased by 1.8% from the previous year and total system-wide retail sales decreased 14.6%.
Pizza Inn’s domestic restaurants increased from 153 to 155, while its international establishments decreased by ten to 48.
Bafundo added: “Pizza Inn has now been on a positive course for ten straight quarters and we are confident this sales momentum will continue.
“At Pie Five, we still have work to do in optimising the service model and building our local restaurant marketing programmes in our trade areas.
“We anticipate that improvements in these areas along with strategic investments in third-party delivery, online ordering and carry-out will all have a long-term impact on off-premise sales and traffic growth.”