RAVE Restaurant Group, Inc. Q1 FY2020 earnings call

• The restaurant industry, especially the pizza category, is experiencing significant change with shifts in share leader, technology transformation, and competitive pressures.
• For Pizza Inn: Focus on new technology capabilities like system-wide point of sale for data-driven decisions and brand refresh initiative to elevate guest experience.
• For Pie Five: Plan to regain leadership by redefining brand through craveable menu, social media engagement, and flawless execution; leverage innovation strength.
• Domino's focus: Build amazing team to disrupt the category, delight consumers, and create value for shareholders and franchisees.
• R&D strength: Patty Scheibmeir, an R&D expert, is an asset for innovation.
• Financials: Total revenue $2.9 million in Q1 2020 vs $3.0 million prior year; net income $0.2 million vs $0.1 million; adjusted EBITDA $0.4 million vs $0.5 million prior year.
• Lease adoption: Adopted ASC 842 leases, adjusting balance sheet with additions to lease assets and liabilities and removal of deferred rent and accrued expenses.

Pizza Inn domestic comparable store retail sales increased 1.3% in the first quarter of fiscal 2020, marking 11 consecutive quarters of positive same store sales. Pie Five comparable retail sales decreased 12.2% in the first quarter of fiscal 2020, with total system-wide Pie Five retail sales down 24.1% primarily due to fewer average units open during the quarter. Pizza Inn domestic units decreased by three to 152, international units decreased by 14 to 34, and Pie Five ended the quarter with 56 open units.

• Brandon Solano sees opportunity and is excited about the company's potential, noting best days are ahead.
• Focus on improving areas, building strong teams, leveraging strengths, and partnering with franchisees to drive profitable traffic and unit economics.

• Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from expectations; refer to SEC filings for detailed risk discussion.

Q: Thoughts on KidZania and Pie Five franchise for Pizza Inn multiunit franchisees?

A: Thrilled with KidZania partnership, working to make it successful; focus on core offerings for now, not prioritizing Pie Five franchise crossover for Pizza Inn franchisees, but open to conversation if interested