RAVE Restaurant Group, Inc. Q3 FY2020 earnings call

• Progress in turnaround strategy for Pie Five and Pizza Inn before COVID-19. - Impact of COVID-19, including store closures, furloughing 2/3 of support staff, and 20% pay reduction for employees. - Pizza Inn efforts: Launched Contactless Buffet To-Go, expanded online footprint, introduced Right Way Buffet with safety measures, with 70 buffet locations open. - Pie Five focus: Working with franchisees to mitigate store closure effects, enhancing everyday value offerings. - Restructuring: Reduced headcount by 31-32%, streamlined overhead to support the business.

Pizza Inn: Domestic comp retail sales declined by 7.8% in the third quarter. Opened 3 domestic units and closed 4, finishing the quarter with 152 domestic units. Pie Five: Domestic comparable same-store sales decreased 21.4% in the third quarter due to COVID-19-related store closures. Closed 10 domestic units, ending the quarter with 43 restaurants.

• Impact of COVID-19 on business operations, including store closures and challenges with buffet locations not initially focused on delivery/carryout. - Uncertainty around consumer data collection due to COVID-19 affecting concept testing.

Q: John Priscilla asks if the company should consider jettisoning Pie Five to focus resources.

A: Brandon Solano states no intention to give up on Pie Five, discusses restructuring, shared resources, plans for a positioning reboot, and ongoing testing despite COVID-related delays.

Q: Michael Disler asks about PPP funds, reserve against net deferred tax effects, and impact of COVID-19 on Q4.

A: Brandon Solano thanks SBA and Chase, Clinton Fendley explains the write-off of the reserve against net deferred tax effects due to COVID impacting profitability forecasts, and Brandon notes Q4 is impacted by COVID both in sales and expenses