Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

☑

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended December 29, 2024 or

☐

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ________ to ________.

Commission File Number: 0-12919

RAVE RESTAURANT GROUP, INC.

(Exact name of registrant as specified in its charter)


Missouri		45-3189287
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3551 Plano Parkway

The Colony, Texas 75056

(Address of principal executive offices)

(Zip Code)

(469) 384-5000

(Registrant’s telephone number,

including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	RAVE	Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☑	Smaller reporting company ☑
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of January 30, 2025, 14,711,566 shares of the issuer’s common stock were outstanding.

RAVE RESTAURANT GROUP, INC.

Index

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	Page

	Condensed Consolidated Statements of Income (unaudited) for the three and sixmonths ended December 29, 2024 and December 24, 2023	3

	Condensed Consolidated Balance Sheets at December 29, 2024 (unaudited) and June 30, 2024	4

	Condensed Consolidated Statements of Shareholders’ Equity (unaudited) for thethree and six months ended December 29, 2024 and December 24, 2023	5

	Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended December 29, 2024 and December 24, 2023	6

	Notes to Unaudited Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24

Item 4.	Controls and Procedures	24

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	25

Item 1A.	Risk Factors	25

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3.	Defaults Upon Senior Securities	25

Item 4.	Mine Safety Disclosures	25

Item 5.	Other Information	25

Item 6.	Exhibits	26

Signatures		27

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

RAVE RESTAURANT GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
REVENUES	$	2,869		$	2,746		$	5,919		$	5,833

COSTS AND EXPENSES
General and administrative expenses		1,314			1,341			2,730			2,660
Franchise expenses		829			844			1,824			2,016
Provision (recovery) for credit losses		9			10			(8	)		35
Interest income		(87	)		(46	)		(169	)		(48	)
Depreciation and amortization expense		53			57			96			112
Total costs and expenses		2,118			2,206			4,473			4,775
INCOME BEFORE TAXES		751			540			1,446			1,058
Income tax expense (benefit)		144			(13	)		313			119
NET INCOME	$	607		$	553		$	1,133		$	939

INCOME PER SHARE OF COMMON STOCK
Basic	$	0.04		$	0.04		$	0.08		$	0.07
Diluted	$	0.04		$	0.04		$	0.08		$	0.07

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		14,690			14,444			14,638			14,299
Diluted		14,716			14,465			14,660			14,319

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

RAVE RESTAURANT GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

(Unaudited)

	December 29, 2024			June 30, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,871		$	2,886
Short-term investments		6,045			4,945
Accounts receivable, less allowance for credit losses of $42 and $57, respectively		1,115			1,411
Notes receivable, current		65			68
Assets held for sale		26			33
Deferred contract charges, current		23			26
Prepaid expenses and other current assets		207			167
Total current assets		10,352			9,536

LONG-TERM ASSETS
Property and equipment, net		171			182
Operating lease right-of-use assets, net		648			817
Intangible assets definite-lived, net		211			252
Notes receivable, net of current portion		56			79
Deferred tax asset, net		4,492			4,756
Deferred contract charges, net of current portion		185			197
Total assets	$	16,115		$	15,819

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable - trade	$	455		$	359
Accrued expenses		498			915
Operating lease liabilities, current		371			402
Deferred revenues, current		116			343
Total current liabilities		1,440			2,019

LONG-TERM LIABILITIES
Operating lease liabilities, net of current portion		393			555
Deferred revenues, net of current portion		503			543
Total liabilities		2,336			3,117

COMMITMENTS AND CONTINGENCIES (SEE NOTE C)

SHAREHOLDERS’ EQUITY
Common stock, $0.01 par value; authorized 26,000,000 shares; issued 25,647,171 and 25,522,171 shares, respectively; outstanding 14,711,566 and 14,586,566 shares, respectively		256			255
Additional paid-in capital		37,506			37,563
Retained earnings		6,045			4,912
Treasury stock, at cost
Shares in treasury: 10,935,605 and 10,935,605 respectively		(30,028	)		(30,028	)
Total shareholders' equity		13,779			12,702

Total liabilities and shareholders' equity	$	16,115		$	15,819

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

RAVE RESTAURANT GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands)

(Unaudited)

	Common Stock				Additional Paid-in					Treasury Stock
	Shares		Amount		Capital			Retained Earnings		Shares			Amount			Total
Balance, June 25, 2023		25,090	$	251	$	37,729		$	2,439		(10,936	)	$	(30,028	)	$	10,391
Stock-based compensation expense		—		—		79			—		—			—			79
Net income		—		—		—			386		—			—			386
Balance, September 24, 2023		25,090	$	251	$	37,808		$	2,825		(10,936	)	$	(30,028	)	$	10,856
Stock-based compensation expense		—		—		3			—		—			—			3
RSU vested and taxes paid on RSUs		432		4		(315	)		—		—			—			(311	)
Net income		—		—		—			553		—			—			553
Balance, December 24, 2023		25,522	$	255	$	37,496		$	3,378		(10,936	)	$	(30,028	)	$	11,101

	Common Stock				Additional Paid-in					Treasury Stock
	Shares		Amount		Capital			Retained Earnings		Shares			Amount			Total
Balance, June 30, 2024		25,522	$	255	$	37,563		$	4,912		(10,936	)	$	(30,028	)	$	12,702
Stock-based compensation expense		—		—		73			—		—			—			73
Net income		—		—		—			526		—			—			526
Balance, September 29, 2024		25,522	$	255	$	37,636		$	5,438		(10,936	)	$	(30,028	)	$	13,301
Stock-based compensation expense		—		—		53			—		—			—			53
RSU vested and taxes paid on RSUs		125		1		(183	)		—		—			—			(182	)
Net income		—		—		—			607		—			—			607
Balance, December 29, 2024		25,647	$	256	$	37,506		$	6,045		(10,936	)	$	(30,028	)	$	13,779

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

RAVE RESTAURANT GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended
	December 29, 2024			December 24, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,133		$	939
Adjustments to reconcile net income to cash provided by operating activities:
Amortization of discount on short-term investment		(63	)		—
Impairment of long-lived assets and other lease charges		9			—
Stock-based compensation expense		126			82
Depreciation and amortization		46			70
Amortization of operating right-of-use assets		169			219
Amortization of definite-lived intangible assets		41			42
Non-cash lease expense		43			—
Provision (recovery) for credit losses		(8	)		35
Deferred income tax		264			71
Changes in operating assets and liabilities:
Accounts receivable		304			(69	)
Notes receivable		—			(54	)
Deferred contract charges		15			11
Prepaid expenses and other current assets		(40	)		(254	)
Accounts payable - trade		96			151
Accrued expenses		(417	)		(442	)
Operating lease liabilities		(236	)		(249	)
Deferred revenues		(267	)		(247	)
Cash provided by operating activities		1,215			305

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments		(8,102	)		—
Maturities of short-term investments		7,065			—
Payments received on notes receivable		26			30
Proceeds from sale of assets		7			—
Purchase of definite-lived intangible assets		—			(8	)
Purchase of property and equipment		(44	)		(38	)
Cash used in investing activities		(1,048	)		(16	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Taxes paid on issuance of restricted stock units		(182	)		(311	)
Cash used in financing activities		(182	)		(311	)

Net decrease in cash and cash equivalents		(15	)		(22	)
Cash and cash equivalents, beginning of period		2,886			5,328
Cash and cash equivalents, end of period	$	2,871		$	5,306

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

CASH PAID FOR:
Income taxes (net of refunds)	$	98		$	4

NON-CASH ACTIVITIES:
Operating lease right of use assets at purchase	$	24		$	—
Operating lease liability at purchase	$	24		$	—

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

RAVE RESTAURANT GROUP, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Rave Restaurant Group, Inc., through its subsidiaries (collectively, the “Company” or “we,” “us” or “our”), franchises pizza buffet (“Buffet Units”), delivery/carry-out (“Delco Units”), express restaurants (“Express Units”) and ghost kitchens (“Pizza Inn Ghost Kitchen Units”) under the trademark “Pizza Inn” and franchises fast casual pizza restaurants (“Pie Five Units”) and ghost kitchens (“Pie Five Ghost Kitchen Units”) under the trademarks “Pie Five Pizza Company” or “Pie Five”. The Company also licenses Pizza Inn Express, or PIE, kiosks (“PIE Units”) under the trademark “Pizza Inn”. We facilitate food, equipment, and supply distribution to our domestic and international system of restaurants through agreements with third-party distributors. The accompanying condensed consolidated financial statements of Rave Restaurant Group, Inc. have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to fairly present the Company’s financial position and results of operations for the interim periods reflected. Except as noted, all adjustments are of a normal recurring nature. Results of operations for the fiscal periods presented are not necessarily indicative of fiscal year-end results.

Note A - Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of Rave Restaurant Group, Inc. and its subsidiaries, all of which are wholly owned. All appropriate inter-company balances and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Short-Term Investments

The Company holds short-term investments in U.S. Treasury bills, classified as trading securities. Accordingly, interest income is recorded through the Condensed Consolidated Statements of Income, when earned. Management has elected to classify all U.S. Treasury bills as short-term, regardless of their maturity dates, as these are readily available to fund current operations and can be liquidated at any time at the discretion of the Company. As of December 29, 2024 and June 30, 2024, the Company held U.S. Treasury bills valued at approximately $6.0 million and $4.9 million, respectively, which are included within short-term investments on the accompanying Condensed Consolidated Balance Sheets. For the three months ended December 29, 2024 and December 24, 2023, interest income recognized on the U.S. Treasury bills was $87 thousand and $46 thousand, respectively. For the six months ended December 29, 2024 and December 24, 2023, interest income recognized on the U.S. Treasury bills was $169 thousand and $48 thousand, respectively.

Fair Value Measurements

Assets and liabilities carried at fair value are categorized based on the level of judgment associated with the inputs used to measure their fair value. Authoritative guidance for fair value measurements establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three levels:

Level 1:

Inputs are unadjusted quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2:

Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date for the duration of the instrument’s anticipated life.

Level 3:

Inputs are unobservable and therefore reflect management’s best estimate of the assumptions that market participants would use in pricing the asset or liability.

The fair value of the Company’s investments in U.S. Treasury bills at December 29, 2024 and December 24, 2023, was determined using Level 1 observable inputs. Management believes the carrying amounts of other financial instruments at December 29, 2024 and December 24, 2023, including cash, accounts receivable, accounts payable, and accrued expenses are representative of their fair values due to their short-term maturities.

The following table summarizes the Company’s financial assets and financial liabilities measured at fair value (in thousands):

	December 29, 2024								June 30, 2024
Fair Value Measurements	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
U.S. Treasury bills	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945
	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945

The Company has no financial assets or liabilities classified within Level 3 of the valuation hierarchy.

These items are classified in their entirety based on the lowest priority level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable consist primarily of receivables generated from franchise royalties and supplier concessions. The Company records an allowance for credit losses to allow for any amounts that may be unrecoverable based upon an analysis of the Company’s prior collection experience, customer creditworthiness and current economic trends. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Finance charges may be accrued at a rate of 18% per year, or up to the maximum amount allowed by law, on past due receivables. The interest income recorded from finance charges is immaterial.

Changes in the allowance for credit losses from continuing operations consisted of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024			December 24, 2023		December 29, 2024			December 24, 2023
Balance at beginning of year	$	40		$	11	$	57		$	58
Provision (recovery) for credit losses		9			11		(8	)		36
Amounts written off		(7	)		—		(7	)		(72	)
Ending balance	$	42		$	22	$	42		$	22

Fiscal Quarters

The three and six month periods ended December 29, 2024 and December 24, 2023 each contained 13 weeks and 26 weeks, respectively.

Use of Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically. Actual results could differ materially from estimates.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU” or “standard”) 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures (Topic 280), which requires companies to enhance disclosure of significant reportable segment expenses. The new guidance is effective for the Company's fiscal year beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. Management believes that adopting this standard will not have a material impact on the Company's consolidated financial statements and related disclosures as a result of adopting this standard.

In December 2023, FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures (Topic 740), which requires companies to provide a more granular breakdown of the components that make up their effective tax rate and additional disclosures about the nature and effect of significant reconciling items. The new guidance is effective for the Company's fiscal year beginning after December 15, 2024. Management believes that adopting this standard will not have a material impact on the Company's consolidated financial statements and related disclosures as a result of adopting this standard.

Revenue Recognition

Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue.

The following describes principal activities, separated by major product or service, from which the Company generates its revenues:

Franchise Revenues

Franchise revenues consist of 1) franchise royalties, 2) supplier and distributor incentive revenues, 3) franchise license fees, 4) area development exclusivity fees and foreign master license fees, 5) advertising fund contributions, and 6) supplier convention funds.

Franchise royalties, which are based on a percentage of net retail sales, are recognized as sales occur.

Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer.

Franchise license fees are typically billed upon execution of the franchise agreement and amortized over the term of the franchise agreement, which typically range from five to 20 years. Fees received for renewal periods are amortized over the life of the renewal period. In the event of a closed franchise or terminated development agreement, the remaining balance of unamortized license fees will be recognized in entirety as of the date of the closure or termination.

Area development exclusivity fees and foreign master license fees are typically billed upon execution of the area development and foreign master license agreements. Area development exclusivity fees are included in deferred revenue in the accompanying Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement as the stores are opened. Area development exclusivity fees that include rights to sub-franchise are amortized as revenue over the term of the contract.

Advertising fund contributions for Pizza Inn and Pie Five units represent contributions collected where we have control over the activities of the fund. Contributions are based on a percentage of net retail sales. We have determined that we are the principal in these arrangements, and advertising fund contributions and expenditures are, therefore, reported on a gross basis in the Condensed Consolidated Statements of Income. In general, we expect such advertising fund contributions and expenditures to be largely offsetting and, therefore, do not expect a significant impact on our reported income before income taxes. Our obligation related to these funds is to develop and conduct advertising activities. Pizza Inn and Pie Five marketing fund contributions are billed and collected weekly or monthly.

Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place.

Rental Income

The Company subleases some of its restaurant space to a third-party. The Company’s sublease has terms that end in 2025. The sublease agreement is non-cancelable through the end of the term and both parties have substantive rights to terminate the lease when the term is complete. Sublease agreements are not capitalized and are recorded as rental income in the period that rent is received.

Total revenues consist of the following (in thousands):

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Franchise royalties	$	1,144	$	1,171	$	2,265	$	2,396
Supplier and distributor incentive revenues		1,156		1,051		2,348		2,151
Franchise license fees		36		50		64		151
Area development exclusivity fees and foreign master license fees		3		3		6		7
Advertising fund contributions		502		426		966		848
Supplier convention funds		—		—		217		187
Rental income		23		38		46		85
Other		5		7		7		8
	$	2,869	$	2,746	$	5,919	$	5,833

Stock-Based Compensation

The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on stock-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow.

Restricted stock units (“RSUs”) represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. Compensation cost for RSUs is measured as an amount equal to the fair value of the RSUs on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level.

Note B - Leases

The Company determines if an arrangement is a lease at inception of the arrangement. To the extent that it can be determined that an arrangement represents a lease, it is classified as either an operating lease or a finance lease. The Company does not currently have any finance leases. The Company capitalizes operating leases on the Condensed Consolidated Balance Sheets through a right-of-use asset and a corresponding lease liability. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Short-term leases that have an initial term of one year or less are not capitalized. The Company does not presently have any short-term leases.

Operating lease right-of-use assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. In addition to the present value of lease payments, the operating lease right-of-use asset also includes any lease payments made to the lessor prior to lease commencement less any lease incentives and initial direct costs incurred. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

Nature of Leases

The Company leases certain office space, restaurant space, and information technology equipment under non-cancelable leases to support its operations. A more detailed description of significant lease types is included below.

Office Space Agreements

The Company rents office space from third parties for its corporate location. Office space agreements are typically structured with non-cancelable terms of one to 10 years. The Company has concluded that its office space agreements represent operating leases with a lease term that equals the primary non-cancelable contract term. Upon completion of the primary term, both parties have substantive rights to terminate the lease. As a result, enforceable rights and obligations do not exist under the rental agreement subsequent to the primary term.

Restaurant Space Agreements

Information Technology Equipment Agreements

The Company rents information technology equipment, primarily printers and copiers, from a third-party for its corporate office location. Information technology equipment agreements are typically structured with non-cancelable terms of one to five years. The Company has concluded that its information technology equipment agreements are operating leases.

Discount Rate

Leases typically do not provide an implicit interest rate. Accordingly, the Company is required to use its incremental borrowing rate in determining the present value of lease payments based on the information available at the lease commencement date. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. The Company uses the implicit rate in the limited circumstances in which that rate is readily determinable.

Lease Guarantees

The Company has guaranteed the financial responsibilities of certain franchised store leases. These guaranteed leases are not considered operating leases because the Company does not have the right to control the underlying asset. If the franchisee abandons the lease and fails to meet the lease’s financial obligations, the lessor may assign the lease to the Company for the remainder of the term. If the Company does not expect to assign the abandoned lease to a new franchisee within 12 months, the lease will be considered an operating lease and a right-of-use asset, and lease liability will be recognized.

Practical Expedients and Accounting Policy Elections

Certain lease agreements include lease and non-lease components. For all existing asset classes with multiple component types, the Company has utilized the practical expedient that exempts it from separating lease components from non-lease components. Accordingly, the Company accounts for the lease and non-lease components in an arrangement as a single lease component.

In addition, for all existing asset classes, the Company has made an accounting policy election not to apply the lease recognition requirements to short-term leases (that is, a lease that, at commencement, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the Company is reasonably certain to exercise). Accordingly, we recognize lease payments related to our short-term leases in our income statements on a straight-line basis over the lease term which has not changed from our prior recognition. To the extent that there are variable lease payments, we recognize those payments in our income statements in the period in which the obligation for those payments is incurred.

The components of total lease expense for the three and six months ended December 29, 2024 and December 24, 2023, where operating lease cost is included in general and administrative expense and sublease income is included in revenues in the accompanying Condensed Consolidated Statements of Income, are as follows (in thousands):

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Operating lease cost	$	103		$	117		$	207		$	240
Sublease income		(23	)		(38	)		(46	)		(85	)
Total lease expense, net of sublease income	$	80		$	79		$	161		$	155

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

	December 29, 2024			December 24, 2023
Weighted average remaining lease term	2.1 Years			2.0 Years
Weighted average discount rate		4.1	%		4.0	%

Operating lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases
2025		201
2026		388
2027		197
2028		6
2029		6
Thereafter		1
Total operating lease payments	$	799
Less: imputed interest		(35	)
Total operating lease liability	$	764

Note C - Commitments and Contingencies

The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s results of operations or financial condition if decided in a manner that is unfavorable to the Company.

Note D - Stock-Based Compensation

Stock Options:

For the three and six months ended December 29, 2024, the Company recognized stock-based compensation expense related to stock options of zero. For the three and six months ended December 24, 2023, the Company recognized stock-based compensation expense related to stock options of zero. As of December 29, 2024, there was no unamortized stock-based compensation expense related to stock options.

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Six Months Ended
	December 29, 2024		December 24, 2023
	Shares		Shares
Outstanding at beginning of year		114,286		151,750

Granted		—		—
Exercised		—		—
Forfeited/Canceled/Expired		—		(8,664	)

Outstanding at end of period		114,286		143,086

Exercisable at end of period		114,286		143,086

Restricted Stock Units:

For the three and six months ended December 29, 2024, the Company had stock-based compensation expense related to RSUs of $53 thousand and $126 thousand, respectively. For the three and six months ended December 24, 2023, the Company had stock-based compensation expense related to RSUs of $3 thousand and $82 thousand, respectively. As of December 29, 2024, there was $492 thousand unamortized stock-based compensation expense related to RSUs.

As of December 29, 2024 the RSUs will be amortized during the next 34 months. A summary of the status of restricted stock units as of December 29, 2024 and December 24, 2023, and changes during the six months then ended is presented below:

	Six Months Ended
	December 29, 2024			December 24, 2023
Unvested at beginning of year		269,063			885,688
Performance adjustment		34,351			(25,223	)
Granted		142,328			131,460
Issued		(198,414	)		(588,589	)
Forfeited		—			(101,461	)
Unvested at end of period		247,328			301,875

Note E - Earnings per Share (EPS)

The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Net income available to common shareholders	$	607	$	553	$	1,133	$	939

BASIC:
Weighted average common shares		14,690		14,444		14,638		14,299

Net income per common share	$	0.04	$	0.04	$	0.08	$	0.07

DILUTED:
Weighted average common shares		14,690		14,444		14,638		14,299
Dilutive stock options and restricted stock units		26		21		22		20
Weighted average common shares outstanding		14,716		14,465		14,660		14,319

Net income per common share	$	0.04	$	0.04	$	0.08	$	0.07

For the three and six months ended December 29, 2024, exercisable options to purchase 74,286 shares of common stock at exercise prices from $3.95 to $13.11 were excluded from the computation of diluted EPS because they had an intrinsic value of zero. For the three and six months ended December 29, 2024, 142,328 and 247,328 RSUs were excluded from the computation of diluted EPS because performance criteria is not probable at period end, respectively.

For the three and six months ended December 24, 2023, exercisable options to purchase 103,086 shares of common stock at exercise prices from $3.95 to $13.11 were excluded from the computation of diluted EPS because they had an intrinsic value of zero. For the three and six months ended December 24, 2023, zero and 90,625 RSUs were excluded from the computation of diluted EPS because performance criteria is not probable at period end, respectively.

Note F - Income Taxes

Total income tax expense consists of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024		December 24, 2023			December 29, 2024		December 24, 2023
Federal tax expense (benefit)	$	121	$	(23	)	$	264	$	85
State tax expense		23		10			49		34
Total income tax expense (benefit)	$	144	$	(13	)	$	313	$	119

The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for the valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets.

Note G - Segment Reporting

The Company has three reportable operating segments as determined by management using the “management approach” as defined by ASC 280 Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) Corporate administration and other. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for these segments are derived from franchise royalties, franchise fees, sale of area development and foreign master license rights and incentive payments from third-party suppliers and distributors. Assets for these segments include equipment, furniture and fixtures.

Corporate administration and other assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following tables are net operating revenues, depreciation and amortization expense, and income before taxes for the Company’s reportable segments as of the three and six months ended December 29, 2024 and December 24, 2023 (in thousands):

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Net sales and operating revenues:
Pizza Inn Franchising	$	2,541		$	2,271		$	5,261		$	4,875
Pie Five Franchising		305			437			612			873
Corporate administration and other		23			38			46			85
Consolidated revenues	$	2,869		$	2,746		$	5,919		$	5,833

Depreciation and amortization:
Corporate administration and other	$	53		$	57		$	96		$	112
Depreciation and amortization	$	53		$	57		$	96		$	112

Income before taxes:
Pizza Inn Franchising	$	1,817		$	1,602		$	3,648		$	3,263
Pie Five Franchising		200			260			401			469
Combined		2,017			1,862			4,049			3,732
Corporate administration and other		(1,266	)		(1,322	)		(2,603	)		(2,674	)
Income before taxes	$	751		$	540		$	1,446		$	1,058

Geographic information (revenues):
United States	$	2,798		$	2,701		$	5,785		$	5,735
Foreign countries		71			45			134			98
Consolidated revenues	$	2,869		$	2,746		$	5,919		$	5,833

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes appearing elsewhere in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended June 30, 2024, together with our Quarterly Report on Form 10-Q for the period ended September 29, 2024, may contain certain forward-looking statements that are based on current management expectations. Generally, verbs in the future tense and the words “believe,” “expect,” “anticipate,” “estimate,” “intends,” “opinion,” “potential” and similar expressions identify forward-looking statements. Forward-looking statements in this report include, without limitation, statements relating to our business objectives, our customers and franchisees, our liquidity and capital resources, and the impact of our historical and potential business strategies on our business, financial condition, and operating results. Our actual results could differ materially from our expectations. Further information concerning our business, including additional factors that could cause actual results to differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q, are set forth in our Annual Report on Form 10-K for the year ended June 30, 2024, as well as our Quarterly Report on Form 10-Q for the period ended September 29, 2024. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements contained herein speak only as of the date of this Quarterly Report on Form 10-Q and, except as may be required by applicable law, we do not undertake, and specifically disclaim any obligation to, publicly update or revise such statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Results of Operations

Overview

Three Months Ended December 29, 2024

(in thousands, except unit data)

	Pizza Inn				Pie Five				All Concepts
	Ending Units		Retail Sales		Ending Units		Retail Sales		Ending Units		Retail Sales
Domestic Franchised/Licensed		102	$	25,855		20	$	2,711		122	$	28,566

International Franchised		27	$	1,893		—	$	—		27	$	1,893

Six Months Ended December 29, 2024

(in thousands, except unit data)

	Pizza Inn				Pie Five				All Concepts
	Ending Units		Retail Sales		Ending Units		Retail Sales		Ending Units		Retail Sales
Domestic Franchised/Licensed		102	$	51,225		20	$	5,689		122	$	56,914

International Franchised		27	$	3,667		—	$	—		27	$	3,667

The domestic units were located in 15 states predominantly situated in the southern half of the United States. The international units were located in eight foreign countries.

Non-GAAP Financial Measures and Other Terms

The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for the results reflected in the Company’s GAAP financial statements.

We consider EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. We believe that EBITDA is helpful to investors in evaluating our results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. We believe that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.

The following key performance indicators presented herein, some of which represent non-GAAP financial measures, have these meanings and are calculated as follows:

●

“EBITDA” represents earnings before interest, taxes, depreciation and amortization.

●

“Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchisee default and closed store revenue/expense, and closed and non-operating store costs.

●

“Retail sales” represents the restaurant sales reported by our franchisees, which may be segmented by brand or domestic/international locations.

●

“Comparable store retail sales” includes the retail sales for restaurants that have been open for at least 18 months as of the end of the reporting period. The sales results for a restaurant that was closed temporarily for remodeling or relocation within the same trade area are included in the calculation only for the days that the restaurant was open in both periods being compared.

●

“Average units open” reflects the number of restaurants open during a reporting period weighted by the percentage of the days in a reporting period that each restaurant was open.

●

“Non-operating store costs” represent gain or loss on asset disposal, store closure expenses, lease termination expenses and expenses related to abandoned store sites.

●

“Franchisee default and closed store revenue/expense” represents the net of accelerated revenues and costs attributable to defaulted area development agreements and closed franchised stores.

EBITDA and Adjusted EBITDA

Adjusted EBITDA for the fiscal quarter ended December 29, 2024 increased $0.3 million compared to the same period of the prior fiscal year. Year-to-date Adjusted EBITDA increased $0.4 million compared to the same period of the prior fiscal year. The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown (in thousands):

RAVE RESTAURANT GROUP, INC.

ADJUSTED EBITDA

(In thousands)

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Net income	$	607		$	553		$	1,133		$	939
Interest income		(87	)		(46	)		(169	)		(48	)
Income taxes		144			(13	)		313			119
Depreciation and amortization		53			57			96			112
EBITDA	$	717		$	551		$	1,373		$	1,122
Stock-based compensation expense		53			3			126			82
Severance		5			—			5			—
Franchisee default and closed store revenue		32			(18	)		23			(82	)
Adjusted EBITDA	$	807		$	536		$	1,527		$	1,122

Pizza Inn Brand Summary

The following tables summarize certain key indicators for the Pizza Inn franchised and licensed domestic units that management believes are useful in evaluating performance:

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Pizza Inn Retail Sales - Total Domestic Units	(in thousands, except unit data)				(in thousands, except unit data)

Buffet Units - Franchised	$	25,030	$	24,558	$	49,529	$	49,569
Delco/Express Units - Franchised		820		968		1,679		1,967
PIE Units - Licensed		4		17		14		37
Pizza Inn Ghost Kitchen Units - Franchised		1		—		3		—
Total Domestic Retail Sales	$	25,855	$	25,543	$	51,225	$	51,573

Pizza Inn Comparable Store Retail Sales - Total Domestic	$	24,752	$	24,565	$	48,756	$	49,089

Pizza Inn Average Units Open in Period

Buffet Units - Franchised		78		75		78		77
Delco/Express Units - Franchised		23		32		23		36
PIE Units - Licensed		1		4		1		5
Pizza Inn Ghost Kitchen Units - Franchised		1		—		1		—
Total Domestic Units		103		111		103		118

Pizza Inn total domestic retail sales increased by $0.3 million, or 1.2%, for the three months ended December 29, 2024 when compared to the same period of the prior year. Compared to the same fiscal quarter of the prior year, average Buffet Units open in the period increased from 75 to 78. Comparable store retail sales increased by $0.2 million, or 0.8%, for the three month period ended December 29, 2024 as compared to the same period of the prior fiscal year. For the three months ended December 29, 2024, the increase in domestic retail sales were primarily the result of the increase in Buffet Units, supplemented by an increase in comparable domestic store retail sales.

Pizza Inn total domestic retail sales decreased by $0.3 million, or 0.7%, for the six months ended December 29, 2024 when compared to the same period of the prior year. Compared to the same fiscal period of the prior year, average Buffet Units open in the period increased from 77 to 78. Comparable store retail sales decreased by $0.3 million, or 0.7%, for the six month period ended December 29, 2024 as compared to the same period of the prior fiscal year. For the six months ended December 29, 2024, the decrease in domestic retail sales were primarily the result of the decrease in comparable domestic store retail sales, offset by an increase in Buffet Units.

The following chart summarizes Pizza Inn restaurant activity for the three and six months ended December 29, 2024:

	Three Months Ended December 29, 2024
	Beginning Units		Opened		Concept Change		Transfer		Closed		Ending Units

Buffet Units - Franchised		77		1		—		3		1		77
Delco/Express Units - Franchised		23		—		—		—		—		23
PIE Units - Licensed		1		—		—		—		—		1
Pizza Inn Ghost Kitchen Units - Franchised		1		—		—		—		—		1
Total Domestic Units		102		1		—		3		1		102

International Units (all types)		26		3		—		—		2		27

Total Units		128		4		—		3		3		129

	Six Months Ended December 29, 2024
	Beginning Units		Opened		Concept Change		Transfer		Closed		Ending Units

Buffet Units - Franchised		78		1		—		3		2		77
Delco/Express Units - Franchised		23		—		—		—		—		23
PIE Units - Licensed		3		—		—		—		2		1
Pizza Inn Ghost Kitchen Units - Franchised		1		—		—		—		—		1
Total Domestic Units		105		1		—		3		4		102

International Units (all types)		24		5		—		—		2		27

Total Units		129		6		—		3		6		129

There was a net decrease of zero and three units in the total domestic Pizza Inn unit count during the three and six months ended December 29, 2024, respectively. There were three unit transfers between franchisees in the total domestic Pizza Inn unit count during the three and six months ended December 29, 2024. For the three and six months ended December 29, 2024, the number of international Pizza Inn units increased by one and three units, respectively. There were zero transfers in the total international Pizza Inn unit count during the three and six months ended December 29, 2024. The Company believes the number of both domestic and international Pizza Inn units will increase modestly in future periods.

Pie Five Brand Summary

The following tables summarize certain key indicators for the Pie Five franchised restaurants that management believes are useful in evaluating performance:

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Pie Five Retail Sales - Total Units	(in thousands, except unit data)				(in thousands, except unit data)

Pie Five Units - Franchised	$	2,627	$	4,304	$	5,512	$	9,071
Pie Five Ghost Kitchen Units - Franchised		84		—		177		—
Total Domestic Retail Sales	$	2,711	$	4,304	$	5,689	$	9,071

Pie Five Comparable Store Retail Sales - Total	$	2,626	$	2,963	$	5,509	$	6,119

Pie Five Average Units Open in Period

Pie Five Units - Franchised		18		25		18		26
Pie Five Ghost Kitchen Units - Franchised		2		—		2		—
Total Domestic Units		20		25		20		26

Pie Five total domestic retail sales decreased by $1.6 million, or 37.0%, for the three months ended December 29, 2024 when compared to the same period of the prior year. Compared to the same fiscal quarter of the prior year, average units open in the period decreased from 25 to 20. Comparable store retail sales decreased by $0.3 million, or 11.4%, for the three month period ended December 29, 2024 as compared to the same period of the prior fiscal year. For the three months ended December 29, 2024, the decrease in domestic retail sales were primarily the result of the decrease in store count, supplemented by a decrease in comparable store retail sales.

Pie Five total domestic retail sales decreased by $3.4 million, or 37.3%, for the six months ended December 29, 2024 when compared to the same period of the prior year. Compared to the same fiscal period of the prior year, average units open in the period decreased from 26 to 20. Comparable store retail sales decreased by $0.6 million, or 10.0%, for the six month period ended December 29, 2024 as compared to the same period of the prior fiscal year. For the six months ended December 29, 2024, the decrease in domestic retail sales were primarily the result of the decrease in store count, supplemented by a decrease in comparable store retail sales.

The following chart summarizes Pie Five restaurant activity for the three and six months ended December 29, 2024:

	Three Months Ended December 29, 2024
	Beginning Units		Opened		Concept Change		Transfer		Closed		Ending Units

Pie Five Units - Franchised		18		—		—		—		—		18
Pie Five Ghost Kitchen Units - Franchised		2		—		—		—		—		2
Total Domestic Units		20		—		—		—		—		20

	Six Months Ended December 29, 2024
	Beginning Units		Opened		Concept Change		Transfer		Closed		Ending Units

Pie Five Units - Franchised		18		—		—		—		—		18
Pie Five Ghost Kitchen Units - Franchised		2		—		—		—		—		2
Total Domestic Units		20		—		—		—		—		20

The Pie Five units remained stable during the three and six months ended December 29, 2024. There were zero transfers in the total domestic Pie Five unit count during the three and six months ended December 29, 2024. We believe that Pie Five units will decrease modestly in future periods.

Financial Results

In addition to Corporate overhead support, the Company defines its operating segments as Pizza Inn Franchising and Pie Five Franchising. The following is additional business segment information for the three and six months ended December 29, 2024 and December 24, 2023 (in thousands):

Three Months Ended December 29, 2024 and December 24, 2023

	Pizza Inn Franchising				Pie Five Franchising				Corporate						Total
	Fiscal Quarter Ended				Fiscal Quarter Ended				Fiscal Quarter Ended						Fiscal Quarter Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023		December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
REVENUES:
Franchise and license revenues	$	2,541	$	2,271	$	300	$	430	$	—		$	—		$	2,841		$	2,701
Rental income		—		—		—		—		23			38			23			38
Other income		—		—		5		7		—			—			5			7
Total revenues		2,541		2,271		305		437		23			38			2,869			2,746

COSTS AND EXPENSES:
General and administrative expenses		—		—		—		—		1,314			1,341			1,314			1,341
Franchise expenses		724		669		105		175		—			—			829			844
Provision for credit losses		—		—		—		—		9			10			9			10
Interest (income) expense		—		—		—		2		(87	)		(48	)		(87	)		(46	)
Depreciation and amortization expense		—		—		—		—		53			57			53			57
Total costs and expenses		724		669		105		177		1,289			1,360			2,118			2,206

INCOME/(LOSS) BEFORE TAXES	$	1,817	$	1,602	$	200	$	260	$	(1,266	)	$	(1,322	)	$	751		$	540

Six Months Ended December 29, 2024 and December 24, 2023

	Pizza Inn Franchising				Pie Five Franchising				Corporate						Total
	Fiscal Year-to-Date				Fiscal Year-to-Date				Fiscal Year-to-Date						Fiscal Year-to-Date
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023		December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
REVENUES:
Franchise and license revenues	$	5,261	$	4,875	$	606	$	865	$	—		$	—		$	5,867		$	5,740
Rental income		—		—		—		—		46			85			46			85
Other income		—		—		6		8		—			—			6			8
Total revenues		5,261		4,875		612		873		46			85			5,919			5,833

COSTS AND EXPENSES:
General and administrative expenses		—		—		—		—		2,730			2,660			2,730			2,660
Franchise expenses		1,613		1,612		211		404		—			—			1,824			2,016
Provision (recovery) for credit losses		—		—		—		—		(8	)		35			(8	)		35
Interest income		—		—		—		—		(169	)		(48	)		(169	)		(48	)
Depreciation and amortization expense		—		—		—		—		96			112			96			112
Total costs and expenses		1,613		1,612		211		404		2,649			2,759			4,473			4,775

INCOME/(LOSS) BEFORE TAXES	$	3,648	$	3,263	$	401	$	469	$	(2,603	)	$	(2,674	)	$	1,446		$	1,058

Revenues:

Revenues are derived from franchise royalties, supplier and distributor incentive revenues, franchise license fees, area development exclusivity fees and foreign master license fees, advertising fund contributions, supplier convention funds, rental income, and other income. The volume of supplier and distributor incentive revenues is dependent on the level of total retail sales, which are impacted by changes in comparable store sales and restaurant count, as well as the products sold to franchisees through third-party food distributors.

Total revenues for the three month period ended December 29, 2024 and for the same period in the prior fiscal year were $2.9 million and $2.7 million, respectively.

Total revenues for the six month period ended December 29, 2024 and for the same period in the prior fiscal year were $5.9 million and $5.8 million, respectively.

Pizza Inn Franchise and License

Pizza Inn franchise revenues increased by $0.3 million to $2.5 million for the three month period ended December 29, 2024 as compared to the same period in the prior fiscal year. The 11.9% increase was driven by increases in supplier and distributor incentives. Pizza Inn franchise revenues increased by $0.4 million to $5.3 million for the six month period ended December 29, 2024 as compared to the same period in the prior fiscal year. The 7.9% increase was driven by increases in supplier and distributor incentives.

Pie Five Franchise and License

Pie Five franchise revenues decreased by $0.1 million to $0.3 million for the three month period ended December 29, 2024 as compared to the same period in the prior fiscal year. The 30.2% decrease was driven by decreases in domestic royalties. Pie Five franchise revenues decreased by $0.3 million to $0.6 million for the six month period ended December 29, 2024 as compared to the same period in the prior fiscal year. The 29.9% decrease was driven by decreases in domestic royalties.

Costs and Expenses:

General and Administrative Expenses

Total general and administrative expenses remained relatively stable at $1.3 million for the three month period ended December 29, 2024 as compared to the same period of the prior fiscal year. The 2.0% decrease was driven by decreases in legal fees, offset by increases in salaries. Total general and administrative expenses increased by $0.1 million to $2.7 million for the six month period ended December 29, 2024 as compared to the same period of the prior fiscal year. The 2.6% increase was driven by increases in salaries.

Franchise Expenses

Franchise expenses include general and administrative expenses directly related to the sale and continuing service of domestic and international franchises. Total franchise expenses remained relatively stable at $0.8 million for the three month period ended December 29, 2024 as compared to the same period of the prior fiscal year. The 1.8% decrease was driven by decreases in salaries, offset by increases in advertising fees. Total franchise expenses decreased by $0.2 million to $1.8 million for the six month period ended December 29, 2024 as compared to the same period of the prior fiscal year. The 9.5% decrease was driven by decreases in salaries and advertising fees.

Provision (Recovery) for Credit Losses

The Company monitors franchisee receivable balances and adjusts credit terms when necessary to minimize the Company’s exposure to high-risk accounts receivable. For the three month period ended December 29, 2024, provision for credit losses was $9 thousand compared to $10 thousand for the same period in the prior fiscal year. During the three month period ended December 29, 2024, the Company recorded a loss in provision for credit losses due to the write off of receivables. For the six month period ended December 29, 2024, recoveries for credit losses were $8 thousand compared to provision for credit losses of $35 thousand for the same period in the prior fiscal year. During the six month period ended December 29, 2024, the Company recorded a loss in provision for credit losses due to the write off of receivables, offset by a gain in provision for credit losses due to the recoveries of receivables that had been previously reserved.

Interest Expense and Income

Interest income increased by $41 thousand to $87 thousand for the three month period ended December 29, 2024 as compared to the same period in the prior fiscal year. The increase was primarily driven by interest received on U.S. Treasury bills. Interest income increased by $121 thousand to $169 thousand for the six month period ended December 29, 2024 as compared to the same period in the prior fiscal year. The increase was primarily driven by interest received on U.S. Treasury bills.

Amortization and Depreciation Expense

Amortization and depreciation expense decreased by $4 thousand to $53 thousand for the three month period ended December 29, 2024 as compared to the same period in the prior year. The decrease was primarily the result of lower depreciation of equipment. Amortization and depreciation expense decreased by $16 thousand to $96 thousand for the six month period ended December 29, 2024 as compared to the same period in the prior year. The decrease was primarily the result of lower depreciation of equipment.

Provision for Income Taxes

Total income tax expense consists of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024		December 24, 2023			December 29, 2024		December 24, 2023
Federal tax expense (benefit)	$	121	$	(23	)	$	264	$	85
State tax expense		23		10			49		34
Total income tax expense (benefit)	$	144	$	(13	)	$	313	$	119

For the three and six months ended December 29, 2024, the Company recorded an income tax expense of $144 thousand and $313 thousand, respectively. For the three and six months ended December 24, 2023, the Company recorded an income tax benefit of $13 thousand and a tax expense of $119 thousand, respectively. The increase for the three months ended as of December 29, 2024 was driven by a decrease in the number of RSUs vested compared to the comparable period of the prior fiscal year, which resulted in a lower tax benefit from stock-based compensation. The increase for the six months ended as of December 29, 2024 was primarily driven by a decrease in the number of RSUs vested compared to the comparable period of the prior fiscal year, which resulted in a lower tax benefit from stock-based compensation.

Basic net income per share remained relatively stable at $0.04 per share for the three months ended December 29, 2024, compared to the comparable period in the prior fiscal year. The Company had net income of $0.6 million for the three months ended December 29, 2024 compared to net income of $0.6 million in the comparable period in the prior fiscal year, on revenues of $2.9 million for the three months ended December 29, 2024 compared to $2.8 million in the comparable period in the prior fiscal year.

Basic net income per share increased $0.01 per share to $0.08 per share for the six months ended December 29, 2024, compared to the comparable period in the prior fiscal year. The Company had net income of $1.1 million for the six months ended December 29, 2024 compared to net income of $0.9 million in the comparable period in the prior fiscal year, on revenues of $5.9 million for the six months ended December 29, 2024 compared to $5.8 million in the comparable period in the prior fiscal year.

Liquidity and Capital Resources

During the six month period ended December 29, 2024, the Company's primary source of liquidity was proceeds from operating activities.

Cash flows from operating activities generally reflect net income adjusted for certain non-cash items including depreciation and amortization, changes in deferred taxes, stock-based compensation, and changes in working capital. Cash provided by operating activities was $1.2 million for the six month period ended December 29, 2024 compared to cash provided by operating activities of $0.3 million for the six month period ended December 24, 2023. The primary driver of increased operating cash flow during the six month period ended December 29, 2024 was increased collections of accounts receivable related to the payment of franchise receivables.

Cash flows from investing activities reflect purchases and maturities of short-term investments as well as net proceeds from the sale of assets and capital expenditures for the purchase of Company assets. Cash used in investing activities during the six month period ended December 29, 2024 was $1.0 million compared to cash used in investing activities of $16 thousand for the six months ended December 24, 2023. Net cash used by investing activities during the six month period ended December 29, 2024 was primarily attributable to increased purchases of U.S. Treasury bills.

Cash flows used in financing activities generally reflect changes in the Company's stock and debt activity during the period. Net cash used in financing activities was $0.2 million for the six month period ended December 29, 2024 compared to net cash used in financing activities of $0.3 million for the six month period ended December 24, 2023. Net cash used by financing activities for the six months ended December 29, 2024 was primarily attributable to taxes paid on vested RSUs. Net cash used by financing activities for the six months ended December 24, 2023 was primarily attributable to taxes paid on vested RSUs.

Management believes the cash on hand combined with net cash provided by operations will be sufficient to fund operations for the next 12 months and beyond.

Employee Retention Credit

On December 27, 2020, the Consolidated Appropriations Act of 2021 (the “CAA”) was signed into law. The CAA expanded eligibility for an employee retention credit for companies impacted by the COVID-19 pandemic with fewer than five hundred employees and at least a twenty percent decline in gross receipts compared to the same quarter in 2019, to encourage retention of employees. This payroll tax credit was a refundable tax credit against certain federal employment taxes. For the fiscal year ended June 26, 2022, the Company recorded $0.7 million of other income for the employee retention credit. As of December 29, 2024, $0.6 million has been received and $0.1 million is still outstanding and included within accounts receivable on the accompanying Condensed Consolidated Balance Sheets.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect our reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically. Actual results could differ materially from estimates.

The Company believes the following critical accounting policies require estimates about the effect of matters that are inherently uncertain, are susceptible to change, and therefore require subjective judgments. Changes in the estimates and judgments could significantly impact the Company’s results of operations and financial condition in future periods.

The Company reviews long-lived assets for impairment when events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use and eventual disposition of the assets compared to their carrying value. If impairment is indicated, the carrying value of an impaired asset is reduced to its fair value, based on discounted estimated future cash flows.

Franchise revenue consists of income from license fees, royalties, area development and foreign master license agreements, advertising fund revenues, supplier incentive and convention contribution revenues. Franchise fees, area development and foreign master license agreement fees are amortized into revenue on a straight-line basis over the term of the related contract agreement. In event of a closed franchise or defaulted development agreement, the remaining balance of unamortized license fees will be recognized in entirety as of the date of the closure or default. Royalties and advertising fund revenues, which are based on a percentage of franchise retail sales, are recognized as income as retail sales occur. Supplier incentive revenues are recognized as earned, typically as the underlying commodities are shipped.

The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. The Company assesses whether a valuation allowance should be established against its deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for the valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight is given to evidence that can be objectively verified, including recent operating performance.

The Company accounts for uncertain tax positions in accordance with ASC 740-10, which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return. ASC 740-10 requires that a company recognize in its financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 29, 2024 and December 24, 2023, the Company had no uncertain tax positions.

The Company assesses its exposures to loss contingencies from legal matters based upon factors such as the current status of the cases and consultations with external counsel and provides for the exposure by accruing an amount if it is judged to be probable and can be reasonably estimated. If the actual loss from a contingency differs from management’s estimate, operating results could be adversely impacted.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not required for a smaller reporting company.

Item 4. Controls and Procedures

The Company maintains disclosure controls and procedures designed to ensure that information it is required to disclose in the reports filed or submitted under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. The Company’s disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The Company’s management, including the Company’s principal executive officer and principal financial officer, or persons performing similar functions, have evaluated the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based on such evaluation, the Company’s principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report. During the most recent fiscal quarter, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s annual results of operations or financial condition if decided in a manner that is unfavorable to the Company.

Item 1A. Risk Factors

Not required for a smaller reporting company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three and six months ended December 29, 2024, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

The financial statements filed as part of this report are listed in the Index to Consolidated Financial Statements and Supplementary Data appearing on page F-1 of this report on Form 10-K.

Any financial statement schedule filed as part of this report is listed in the Index to Consolidated Financial Statements and Supplementary Data appearing on page F-1 of this report on Form 10-K.

Exhibits:


3.1	Amended and Restated Articles of Incorporation of Rave Restaurant Group, Inc. (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed January 8, 2015).

3.2	Amended and Restated Bylaws of Rave Restaurant Group, Inc. (incorporated by reference to Exhibit 3.2 to the registrant’s Current Report on Form 8-K filed January 8, 2015).

10.1	2015 Long Term Incentive Plan of the Company (filed as Exhibit 10.1 to Form 8-K filed November 20, 2014 and incorporated herein by reference).*

10.2	Form of Stock Option Grant Agreement under the Company’s 2015 Long Term Incentive Plan (filed as Exhibit 10.2 to Form 8-K filed November 20, 2014 and incorporated herein by reference).*

10.3	Form of Restricted Stock Unit Award Agreement under the Company’s 2015 Long-Term Incentive Plan (filed as Exhibit 10.3 to Form 10-K/A filed on September 30, 2019 and incorporated herein by reference).*

10.4	Lease Agreement dated November 1, 2016, between A&H Properties Partnership and Rave Restaurant Group, Inc. (filed as Exhibit 10.4 to Form 10-K for the year ended June 30, 2019 and incorporated herein by reference).*

10.5	First Amendment to Lease and Expansion dated July 1, 2017, between A&H Properties Partnership and Rave Restaurant Group, Inc. (filed as Exhibit 10.5 to Form 10-K for the year ended June 30, 2019 and incorporated herein by reference).*

10.6	Second Amendment to Lease Agreement effective June 1, 2020, between A&H Properties Partnership and Rave Restaurant Group, Inc. (filed as Exhibit 10.6 to Form 10-K for the fiscal year ended June 27, 2021 and incorporated herein by reference).

10.7	Letter agreement dated October 18, 2019, between Rave Restaurant Group, Inc. and Brandon Solano (filed as Exhibit 10.1 to Form 8-K filed October 21, 2019 and incorporated herein by reference).*

10.8	Letter agreement dated March 25, 2024, between Rave Restaurant Group, Inc. and Jay Rooney (filed as Exhibit 10.1 to Form 8-K filed March 26, 2024 and incorporated herein by reference).*

31.1	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.

31.2	Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.

32.1	Section 1350 Certification of Principal Executive Officer.

32.2	Section 1350 Certification of Principal Financial Officer.

101	Interactive data files pursuant to Rule 405 of Regulation S-T.

104	Cover Page Interactive Data File (formatted as Inline XBRL).

*Management contract or compensatory plan or agreement.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	RAVE RESTAURANT GROUP, INC.
	(Registrant)

	By:	/s/ Brandon L. Solano
		Brandon L. Solano
		Chief Executive Officer
		(principal executive officer)

	By:	/s/ Jay D. Rooney
		Jay D. Rooney
		Chief Financial Officer
		(principal financial officer)

Dated: February 6, 2025

0000718332 false 2025 Q2 --06-30 0000718332 2024-07-01 2024-12-29 0000718332 2025-01-30 0000718332 2024-09-30 2024-12-29 0000718332 2023-09-25 2023-12-24 0000718332 2023-06-26 2023-12-24 0000718332 2024-12-29 0000718332 2024-06-30 0000718332 us-gaap:CommonStockMember 2023-06-25 0000718332 us-gaap:AdditionalPaidInCapitalMember 2023-06-25 0000718332 us-gaap:RetainedEarningsMember 2023-06-25 0000718332 us-gaap:TreasuryStockCommonMember 2023-06-25 0000718332 2023-06-25 0000718332 us-gaap:CommonStockMember 2023-06-26 2023-09-24 0000718332 us-gaap:AdditionalPaidInCapitalMember 2023-06-26 2023-09-24 0000718332 us-gaap:RetainedEarningsMember 2023-06-26 2023-09-24 0000718332 us-gaap:TreasuryStockCommonMember 2023-06-26 2023-09-24 0000718332 2023-06-26 2023-09-24 0000718332 us-gaap:CommonStockMember 2023-09-24 0000718332 us-gaap:AdditionalPaidInCapitalMember 2023-09-24 0000718332 us-gaap:RetainedEarningsMember 2023-09-24 0000718332 us-gaap:TreasuryStockCommonMember 2023-09-24 0000718332 2023-09-24 0000718332 us-gaap:CommonStockMember 2023-09-25 2023-12-24 0000718332 us-gaap:AdditionalPaidInCapitalMember 2023-09-25 2023-12-24 0000718332 us-gaap:RetainedEarningsMember 2023-09-25 2023-12-24 0000718332 us-gaap:TreasuryStockCommonMember 2023-09-25 2023-12-24 0000718332 us-gaap:CommonStockMember 2023-12-24 0000718332 us-gaap:AdditionalPaidInCapitalMember 2023-12-24 0000718332 us-gaap:RetainedEarningsMember 2023-12-24 0000718332 us-gaap:TreasuryStockCommonMember 2023-12-24 0000718332 2023-12-24 0000718332 us-gaap:CommonStockMember 2024-06-30 0000718332 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0000718332 us-gaap:RetainedEarningsMember 2024-06-30 0000718332 us-gaap:TreasuryStockCommonMember 2024-06-30 0000718332 us-gaap:CommonStockMember 2024-07-01 2024-09-29 0000718332 us-gaap:AdditionalPaidInCapitalMember 2024-07-01 2024-09-29 0000718332 us-gaap:RetainedEarningsMember 2024-07-01 2024-09-29 0000718332 us-gaap:TreasuryStockCommonMember 2024-07-01 2024-09-29 0000718332 2024-07-01 2024-09-29 0000718332 us-gaap:CommonStockMember 2024-09-29 0000718332 us-gaap:AdditionalPaidInCapitalMember 2024-09-29 0000718332 us-gaap:RetainedEarningsMember 2024-09-29 0000718332 us-gaap:TreasuryStockCommonMember 2024-09-29 0000718332 2024-09-29 0000718332 us-gaap:CommonStockMember 2024-09-30 2024-12-29 0000718332 us-gaap:AdditionalPaidInCapitalMember 2024-09-30 2024-12-29 0000718332 us-gaap:RetainedEarningsMember 2024-09-30 2024-12-29 0000718332 us-gaap:TreasuryStockCommonMember 2024-09-30 2024-12-29 0000718332 us-gaap:CommonStockMember 2024-12-29 0000718332 us-gaap:AdditionalPaidInCapitalMember 2024-12-29 0000718332 us-gaap:RetainedEarningsMember 2024-12-29 0000718332 us-gaap:TreasuryStockCommonMember 2024-12-29 0000718332 us-gaap:USTreasuryBillSecuritiesMember 2024-12-29 0000718332 us-gaap:USTreasuryBillSecuritiesMember 2024-06-30 0000718332 us-gaap:USTreasuryBillSecuritiesMember 2024-09-30 2024-12-29 0000718332 us-gaap:USTreasuryBillSecuritiesMember 2023-09-25 2023-12-24 0000718332 us-gaap:USTreasuryBillSecuritiesMember 2024-07-01 2024-12-29 0000718332 us-gaap:USTreasuryBillSecuritiesMember 2023-06-26 2023-12-24 0000718332 us-gaap:FairValueInputsLevel3Member 2024-12-29 0000718332 srt:MinimumMember 2024-07-01 2024-12-29 0000718332 srt:MaximumMember 2024-07-01 2024-12-29 0000718332 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryBillSecuritiesMember 2024-12-29 0000718332 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryBillSecuritiesMember 2024-12-29 0000718332 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasuryBillSecuritiesMember 2024-12-29 0000718332 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryBillSecuritiesMember 2024-06-30 0000718332 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryBillSecuritiesMember 2024-06-30 0000718332 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasuryBillSecuritiesMember 2024-06-30 0000718332 us-gaap:FairValueInputsLevel1Member 2024-12-29 0000718332 us-gaap:FairValueInputsLevel2Member 2024-12-29 0000718332 us-gaap:FairValueInputsLevel1Member 2024-06-30 0000718332 us-gaap:FairValueInputsLevel2Member 2024-06-30 0000718332 us-gaap:FairValueInputsLevel3Member 2024-06-30 0000718332 rave:FranchiseRoyaltiesMember 2024-09-30 2024-12-29 0000718332 rave:FranchiseRoyaltiesMember 2023-09-25 2023-12-24 0000718332 rave:FranchiseRoyaltiesMember 2024-07-01 2024-12-29 0000718332 rave:FranchiseRoyaltiesMember 2023-06-26 2023-12-24 0000718332 rave:SupplierAndDistributorIncentiveRevenuesMember 2024-09-30 2024-12-29 0000718332 rave:SupplierAndDistributorIncentiveRevenuesMember 2023-09-25 2023-12-24 0000718332 rave:SupplierAndDistributorIncentiveRevenuesMember 2024-07-01 2024-12-29 0000718332 rave:SupplierAndDistributorIncentiveRevenuesMember 2023-06-26 2023-12-24 0000718332 rave:FranchiseLicenseFeesMember 2024-09-30 2024-12-29 0000718332 rave:FranchiseLicenseFeesMember 2023-09-25 2023-12-24 0000718332 rave:FranchiseLicenseFeesMember 2024-07-01 2024-12-29 0000718332 rave:FranchiseLicenseFeesMember 2023-06-26 2023-12-24 0000718332 rave:AreaDevelopmentExclusivityFeesAndForeignMasterLicenseFeesMember 2024-09-30 2024-12-29 0000718332 rave:AreaDevelopmentExclusivityFeesAndForeignMasterLicenseFeesMember 2023-09-25 2023-12-24 0000718332 rave:AreaDevelopmentExclusivityFeesAndForeignMasterLicenseFeesMember 2024-07-01 2024-12-29 0000718332 rave:AreaDevelopmentExclusivityFeesAndForeignMasterLicenseFeesMember 2023-06-26 2023-12-24 0000718332 rave:AdvertisingFundsMember 2024-09-30 2024-12-29 0000718332 rave:AdvertisingFundsMember 2023-09-25 2023-12-24 0000718332 rave:AdvertisingFundsMember 2024-07-01 2024-12-29 0000718332 rave:AdvertisingFundsMember 2023-06-26 2023-12-24 0000718332 rave:SupplierConventionFundsMember 2024-09-30 2024-12-29 0000718332 rave:SupplierConventionFundsMember 2023-09-25 2023-12-24 0000718332 rave:SupplierConventionFundsMember 2024-07-01 2024-12-29 0000718332 rave:SupplierConventionFundsMember 2023-06-26 2023-12-24 0000718332 rave:RentalIncomeMember 2024-09-30 2024-12-29 0000718332 rave:RentalIncomeMember 2023-09-25 2023-12-24 0000718332 rave:RentalIncomeMember 2024-07-01 2024-12-29 0000718332 rave:RentalIncomeMember 2023-06-26 2023-12-24 0000718332 rave:OtherRevenuesMember 2024-09-30 2024-12-29 0000718332 rave:OtherRevenuesMember 2023-09-25 2023-12-24 0000718332 rave:OtherRevenuesMember 2024-07-01 2024-12-29 0000718332 rave:OtherRevenuesMember 2023-06-26 2023-12-24 0000718332 srt:MinimumMember rave:OfficeAgreementsMember 2024-12-29 0000718332 srt:MaximumMember rave:OfficeAgreementsMember 2024-12-29 0000718332 srt:MinimumMember us-gaap:ComputerSoftwareIntangibleAssetMember 2024-12-29 0000718332 srt:MaximumMember us-gaap:ComputerSoftwareIntangibleAssetMember 2024-12-29 0000718332 us-gaap:EmployeeStockOptionMember 2024-09-30 2024-12-29 0000718332 us-gaap:EmployeeStockOptionMember 2024-07-01 2024-12-29 0000718332 us-gaap:EmployeeStockOptionMember 2023-09-25 2023-12-24 0000718332 us-gaap:EmployeeStockOptionMember 2023-06-26 2023-12-24 0000718332 us-gaap:EmployeeStockOptionMember 2024-12-29 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2024-09-30 2024-12-29 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2024-07-01 2024-12-29 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2023-09-25 2023-12-24 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2023-06-26 2023-12-24 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2024-12-29 0000718332 us-gaap:EmployeeStockOptionMember 2024-06-30 0000718332 us-gaap:EmployeeStockOptionMember 2023-06-25 0000718332 us-gaap:EmployeeStockOptionMember 2023-12-24 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2024-06-30 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2023-06-25 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2023-12-24 0000718332 us-gaap:EmployeeStockOptionMember 2024-09-30 2024-12-29 0000718332 us-gaap:EmployeeStockOptionMember 2024-07-01 2024-12-29 0000718332 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2024-12-29 0000718332 srt:MaximumMember us-gaap:EmployeeStockOptionMember 2024-12-29 0000718332 us-gaap:EmployeeStockOptionMember 2024-12-29 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2024-09-30 2024-12-29 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2024-07-01 2024-12-29 0000718332 us-gaap:EmployeeStockOptionMember 2023-09-25 2023-12-24 0000718332 us-gaap:EmployeeStockOptionMember 2023-06-26 2023-12-24 0000718332 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2023-12-24 0000718332 srt:MaximumMember us-gaap:EmployeeStockOptionMember 2023-12-24 0000718332 us-gaap:EmployeeStockOptionMember 2023-12-24 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2023-09-25 2023-12-24 0000718332 us-gaap:RestrictedStockUnitsRSUMember 2023-06-26 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember rave:PizzaInnFranchisingMember 2024-09-30 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember rave:PizzaInnFranchisingMember 2023-09-25 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember rave:PizzaInnFranchisingMember 2024-07-01 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember rave:PizzaInnFranchisingMember 2023-06-26 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember rave:PieFiveFranchisingMember 2024-09-30 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember rave:PieFiveFranchisingMember 2023-09-25 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember rave:PieFiveFranchisingMember 2024-07-01 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember rave:PieFiveFranchisingMember 2023-06-26 2023-12-24 0000718332 rave:CorporateAdministrationAndOtherMember 2024-09-30 2024-12-29 0000718332 rave:CorporateAdministrationAndOtherMember 2023-09-25 2023-12-24 0000718332 rave:CorporateAdministrationAndOtherMember 2024-07-01 2024-12-29 0000718332 rave:CorporateAdministrationAndOtherMember 2023-06-26 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember 2024-09-30 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember 2023-09-25 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember 2024-07-01 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember 2023-06-26 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember rave:CorporateAdministrationAndOtherMember 2024-09-30 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember rave:CorporateAdministrationAndOtherMember 2023-09-25 2023-12-24 0000718332 us-gaap:OperatingSegmentsMember rave:CorporateAdministrationAndOtherMember 2024-07-01 2024-12-29 0000718332 us-gaap:OperatingSegmentsMember rave:CorporateAdministrationAndOtherMember 2023-06-26 2023-12-24 0000718332 srt:ReportableGeographicalComponentsMember country:US 2024-09-30 2024-12-29 0000718332 srt:ReportableGeographicalComponentsMember country:US 2023-09-25 2023-12-24 0000718332 srt:ReportableGeographicalComponentsMember country:US 2024-07-01 2024-12-29 0000718332 srt:ReportableGeographicalComponentsMember country:US 2023-06-26 2023-12-24 0000718332 srt:ReportableGeographicalComponentsMember rave:ForeignCountriesMember 2024-09-30 2024-12-29 0000718332 srt:ReportableGeographicalComponentsMember rave:ForeignCountriesMember 2023-09-25 2023-12-24 0000718332 srt:ReportableGeographicalComponentsMember rave:ForeignCountriesMember 2024-07-01 2024-12-29 0000718332 srt:ReportableGeographicalComponentsMember rave:ForeignCountriesMember 2023-06-26 2023-12-24 0000718332 srt:ReportableGeographicalComponentsMember 2024-09-30 2024-12-29 0000718332 srt:ReportableGeographicalComponentsMember 2023-09-25 2023-12-24 0000718332 srt:ReportableGeographicalComponentsMember 2024-07-01 2024-12-29 0000718332 srt:ReportableGeographicalComponentsMember 2023-06-26 2023-12-24 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure rave:Segment

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Brandon L. Solano, certify that:

I have reviewed this quarterly report on Form 10-Q of Rave Restaurant Group, Inc. (“the Registrant”);

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.


Date: February 6, 2025	By:	/s/ Brandon L. Solano
		Brandon L. Solano
		Chief Executive Officer
		(principal executive officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jay D. Rooney, certify that:

I have reviewed this quarterly report on Form 10-Q of Rave Restaurant Group, Inc. (“the Registrant”);

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.


Date: February 6, 2025	By:	/s/ Jay D. Rooney
		Jay D. Rooney
		Chief Financial Officer
		(principal financial officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Rave Restaurant Group, Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that:

The accompanying Quarterly Report on Form 10-Q for the quarter ended December 29, 2024 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Form 10-Q.


Date: February 6, 2025	By:	/s/ Brandon L. Solano
		Brandon L. Solano
		Chief Executive Officer
		(principal executive officer)

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


Date: February 6, 2025	By:	/s/ Jay D. Rooney
		Jay D. Rooney
		Chief Financial Officer
		(principal financial officer)

Cover - shares	6 Months Ended
Cover - shares	Dec. 29, 2024	Jan. 30, 2025
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Dec. 29, 2024
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Entity Information [Line Items]
Entity Registrant Name	RAVE RESTAURANT GROUP, INC.
Entity Central Index Key	0000718332
Entity File Number	0-12919
Entity Tax Identification Number	45-3189287
Entity Incorporation, State or Country Code	MO
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	3551 Plano Parkway
Entity Address, City or Town	The Colony
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75056
Entity Phone Fax Numbers [Line Items]
City Area Code	469
Local Phone Number	384-5000
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	RAVE
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		14,711,566

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
CONDENSED CONSOLIDATED STATEMENTS OF INCOME [Abstract]
REVENUES	$ 2,869	$ 2,746	$ 5,919	$ 5,833
COSTS AND EXPENSES
General and administrative expenses	1,314	1,341	2,730	2,660
Franchise expenses	829	844	1,824	2,016
Provision (recovery) for credit losses	9	10	(8)	35
Interest income	(87)	(46)	(169)	(48)
Depreciation and amortization expense	53	57	96	112
Total costs and expenses	2,118	2,206	4,473	4,775
INCOME BEFORE TAXES	751	540	1,446	1,058
Income tax expense (benefit)	144	(13)	313	119
NET INCOME	$ 607	$ 553	$ 1,133	$ 939
INCOME PER SHARE OF COMMON STOCK
Basic (in Dollars per share)	$ 0.04	$ 0.04	$ 0.08	$ 0.07
Diluted (in Dollars per share)	$ 0.04	$ 0.04	$ 0.08	$ 0.07
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in Shares)	14,690	14,444	14,638	14,299
Diluted (in Shares)	14,716	14,465	14,660	14,319

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 29, 2024	Jun. 30, 2024
CURRENT ASSETS
Cash and cash equivalents	$ 2,871	$ 2,886
Short-term investments	6,045	4,945
Accounts receivable, less allowance for credit losses of $42 and $57, respectively	1,115	1,411
Notes receivable, current	65	68
Assets held for sale	26	33
Deferred contract charges, current	23	26
Prepaid expenses and other current assets	207	167
Total current assets	10,352	9,536
LONG-TERM ASSETS
Property and equipment, net	171	182
Operating lease right-of-use assets, net	648	817
Intangible assets definite-lived, net	211	252
Notes receivable, net of current portion	56	79
Deferred tax asset, net	4,492	4,756
Deferred contract charges, net of current portion	185	197
Total assets	16,115	15,819
CURRENT LIABILITIES
Accounts payable - trade	455	359
Accrued expenses	498	915
Operating lease liabilities, current	371	402
Deferred revenues, current	116	343
Total current liabilities	1,440	2,019
LONG-TERM LIABILITIES
Operating lease liabilities, net of current portion	393	555
Deferred revenues, net of current portion	503	543
Total liabilities	2,336	3,117
COMMITMENTS AND CONTINGENCIES (SEE NOTE C)
SHAREHOLDERS’ EQUITY
Common stock, $0.01 par value; authorized 26,000,000 shares; issued 25,647,171 and 25,522,171 shares, respectively; outstanding 14,711,566 and 14,586,566 shares, respectively	256	255
Additional paid-in capital	37,506	37,563
Retained earnings	6,045	4,912
Treasury stock, at cost Shares in treasury: 10,935,605 and 10,935,605 respectively	(30,028)	(30,028)
Total shareholders' equity	13,779	12,702
Total liabilities and shareholders' equity	$ 16,115	$ 15,819

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Dec. 29, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit losses (in Dollars)	$ 42	$ 57
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	26,000,000	26,000,000
Common stock, shares issued (in shares)	25,647,171	25,522,171
Common stock, shares outstanding (in shares)	14,711,566	14,586,566
Treasury stock at cost (in shares)	10,935,605	10,935,605

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Beginning balance at Jun. 25, 2023	$ 251	$ 37,729	$ 2,439	$ (30,028)	$ 10,391
Beginning balance (in Shares) at Jun. 25, 2023	25,090,000			(10,936,000)
Stock-based compensation expense	$ 0	79	0	$ 0	79
Net income	0	0	386	0	386
Ending balance at Sep. 24, 2023	$ 251	37,808	2,825	$ (30,028)	10,856
Ending balance (in Shares) at Sep. 24, 2023	25,090,000			(10,936,000)
Beginning balance at Jun. 25, 2023	$ 251	37,729	2,439	$ (30,028)	10,391
Beginning balance (in Shares) at Jun. 25, 2023	25,090,000			(10,936,000)
Net income					939
Ending balance at Dec. 24, 2023	$ 255	37,496	3,378	$ (30,028)	11,101
Ending balance (in Shares) at Dec. 24, 2023	25,522,000			(10,936,000)
Beginning balance at Sep. 24, 2023	$ 251	37,808	2,825	$ (30,028)	10,856
Beginning balance (in Shares) at Sep. 24, 2023	25,090,000			(10,936,000)
Stock-based compensation expense	$ 0	3	0	$ 0	3
RSU vested and taxes paid on RSUs	$ 4	(315)	0	0	(311)
RSU vested and taxes paid on RSUs (in Shares)	432,000
Net income	$ 0	0	553	0	553
Ending balance at Dec. 24, 2023	$ 255	37,496	3,378	$ (30,028)	11,101
Ending balance (in Shares) at Dec. 24, 2023	25,522,000			(10,936,000)
Beginning balance at Jun. 30, 2024	$ 255	37,563	4,912	$ (30,028)	$ 12,702
Beginning balance (in Shares) at Jun. 30, 2024	25,522,000			(10,936,000)	25,522,171
Stock-based compensation expense	$ 0	73	0	$ 0	$ 73
Net income	0	0	526	0	526
Ending balance at Sep. 29, 2024	$ 255	37,636	5,438	$ (30,028)	13,301
Ending balance (in Shares) at Sep. 29, 2024	25,522,000			(10,936,000)
Beginning balance at Jun. 30, 2024	$ 255	37,563	4,912	$ (30,028)	$ 12,702
Beginning balance (in Shares) at Jun. 30, 2024	25,522,000			(10,936,000)	25,522,171
Net income					$ 1,133
Ending balance at Dec. 29, 2024	$ 256	37,506	6,045	$ (30,028)	$ 13,779
Ending balance (in Shares) at Dec. 29, 2024	25,647,000			(10,936,000)	25,647,171
Beginning balance at Sep. 29, 2024	$ 255	37,636	5,438	$ (30,028)	$ 13,301
Beginning balance (in Shares) at Sep. 29, 2024	25,522,000			(10,936,000)
Stock-based compensation expense	$ 0	53	0	$ 0	53
RSU vested and taxes paid on RSUs	$ 1	(183)	0	0	(182)
RSU vested and taxes paid on RSUs (in Shares)	125,000
Net income	$ 0	0	607	0	607
Ending balance at Dec. 29, 2024	$ 256	$ 37,506	$ 6,045	$ (30,028)	$ 13,779
Ending balance (in Shares) at Dec. 29, 2024	25,647,000			(10,936,000)	25,647,171

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,133	$ 939
Adjustments to reconcile net income to cash provided by operating activities:
Amortization of discount on short-term investment	(63)	0
Impairment of long-lived assets and other lease charges	9	0
Stock-based compensation expense	126	82
Depreciation and amortization	46	70
Amortization of operating right-of-use assets	169	219
Amortization of definite-lived intangible assets	41	42
Non-cash lease expense	43	0
Provision (recovery) for credit losses	(8)	35
Deferred income tax	264	71
Changes in operating assets and liabilities:
Accounts receivable	304	(69)
Notes receivable	0	(54)
Deferred contract charges	15	11
Prepaid expenses and other current assets	(40)	(254)
Accounts payable - trade	96	151
Accrued expenses	(417)	(442)
Operating lease liabilities	(236)	(249)
Deferred revenues	(267)	(247)
Cash provided by operating activities	1,215	305
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments	(8,102)	0
Maturities of short-term investments	7,065	0
Payments received on notes receivable	26	30
Proceeds from sale of assets	7	0
Purchase of definite-lived intangible assets	0	(8)
Purchase of property and equipment	(44)	(38)
Cash used in investing activities	(1,048)	(16)
CASH FLOWS FROM FINANCING ACTIVITIES:
Taxes paid on issuance of restricted stock units	(182)	(311)
Cash used in financing activities	(182)	(311)
Net decrease in cash and cash equivalents	(15)	(22)
Cash and cash equivalents, beginning of period	2,886	5,328
Cash and cash equivalents, end of period	2,871	5,306
CASH PAID FOR:
Income taxes (net of refunds)	98	4
NON-CASH ACTIVITIES:
Operating lease right of use assets at purchase	24	0
Operating lease liability at purchase	$ 24	$ 0

Summary of Significant Accounting Policies

6 Months Ended

Dec. 29, 2024

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note A - Summary of Significant Accounting Policies

Principles of Consolidation

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Short-Term Investments

Fair Value Measurements

Level 1:

Inputs are unadjusted quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2:

Level 3:

Inputs are unobservable and therefore reflect management’s best estimate of the assumptions that market participants would use in pricing the asset or liability.

The following table summarizes the Company’s financial assets and financial liabilities measured at fair value (in thousands):

	December 29, 2024								June 30, 2024
Fair Value Measurements	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
U.S. Treasury bills	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945
	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945

The Company has no financial assets or liabilities classified within Level 3 of the valuation hierarchy.

Accounts Receivable and Allowance for Credit Losses

Changes in the allowance for credit losses from continuing operations consisted of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024			December 24, 2023		December 29, 2024			December 24, 2023
Balance at beginning of year	$	40		$	11	$	57		$	58
Provision (recovery) for credit losses		9			11		(8	)		36
Amounts written off		(7	)		—		(7	)		(72	)
Ending balance	$	42		$	22	$	42		$	22

Fiscal Quarters

The three and six month periods ended December 29, 2024 and December 24, 2023 each contained 13 weeks and 26 weeks, respectively.

Use of Management Estimates

Recent Accounting Pronouncements

Revenue Recognition

The following describes principal activities, separated by major product or service, from which the Company generates its revenues:

Franchise Revenues

Franchise royalties, which are based on a percentage of net retail sales, are recognized as sales occur.

Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer.

Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place.

Rental Income

Total revenues consist of the following (in thousands):

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Franchise royalties	$	1,144	$	1,171	$	2,265	$	2,396
Supplier and distributor incentive revenues		1,156		1,051		2,348		2,151
Franchise license fees		36		50		64		151
Area development exclusivity fees and foreign master license fees		3		3		6		7
Advertising fund contributions		502		426		966		848
Supplier convention funds		—		—		217		187
Rental income		23		38		46		85
Other		5		7		7		8
	$	2,869	$	2,746	$	5,919	$	5,833

Stock-Based Compensation

Leases

6 Months Ended

Dec. 29, 2024

Leases [Abstract]

Leases

Note B - Leases

Nature of Leases

Office Space Agreements

Restaurant Space Agreements

Information Technology Equipment Agreements

Discount Rate

Lease Guarantees

Practical Expedients and Accounting Policy Elections

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Operating lease cost	$	103		$	117		$	207		$	240
Sublease income		(23	)		(38	)		(46	)		(85	)
Total lease expense, net of sublease income	$	80		$	79		$	161		$	155

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

	December 29, 2024			December 24, 2023
Weighted average remaining lease term	2.1 Years			2.0 Years
Weighted average discount rate		4.1	%		4.0	%

Operating lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases
2025		201
2026		388
2027		197
2028		6
2029		6
Thereafter		1
Total operating lease payments	$	799
Less: imputed interest		(35	)
Total operating lease liability	$	764

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Dec. 29, 2024
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note C - Commitments and Contingencies The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s results of operations or financial condition if decided in a manner that is unfavorable to the Company.

Stock-Based Compensation

6 Months Ended

Dec. 29, 2024

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note D - Stock-Based Compensation

Stock Options:

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Six Months Ended
	December 29, 2024		December 24, 2023
	Shares		Shares
Outstanding at beginning of year		114,286		151,750

Granted		—		—
Exercised		—		—
Forfeited/Canceled/Expired		—		(8,664	)

Outstanding at end of period		114,286		143,086

Exercisable at end of period		114,286		143,086

Restricted Stock Units:

	Six Months Ended
	December 29, 2024			December 24, 2023
Unvested at beginning of year		269,063			885,688
Performance adjustment		34,351			(25,223	)
Granted		142,328			131,460
Issued		(198,414	)		(588,589	)
Forfeited		—			(101,461	)
Unvested at end of period		247,328			301,875

Earnings per Share (EPS)

6 Months Ended

Dec. 29, 2024

Earnings per Share (EPS) [Abstract]

Earnings per Share (EPS)

Note E - Earnings per Share (EPS)

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Net income available to common shareholders	$	607	$	553	$	1,133	$	939

BASIC:
Weighted average common shares		14,690		14,444		14,638		14,299

Net income per common share	$	0.04	$	0.04	$	0.08	$	0.07

DILUTED:
Weighted average common shares		14,690		14,444		14,638		14,299
Dilutive stock options and restricted stock units		26		21		22		20
Weighted average common shares outstanding		14,716		14,465		14,660		14,319

Net income per common share	$	0.04	$	0.04	$	0.08	$	0.07

Income Taxes

6 Months Ended

Dec. 29, 2024

Income Taxes [Abstract]

Income Taxes

Note F - Income Taxes

Total income tax expense consists of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024		December 24, 2023			December 29, 2024		December 24, 2023
Federal tax expense (benefit)	$	121	$	(23	)	$	264	$	85
State tax expense		23		10			49		34
Total income tax expense (benefit)	$	144	$	(13	)	$	313	$	119

The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for the valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets.

Segment Reporting

6 Months Ended

Dec. 29, 2024

Segment Reporting [Abstract]

Segment Reporting

Note G - Segment Reporting

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Net sales and operating revenues:
Pizza Inn Franchising	$	2,541		$	2,271		$	5,261		$	4,875
Pie Five Franchising		305			437			612			873
Corporate administration and other		23			38			46			85
Consolidated revenues	$	2,869		$	2,746		$	5,919		$	5,833

Depreciation and amortization:
Corporate administration and other	$	53		$	57		$	96		$	112
Depreciation and amortization	$	53		$	57		$	96		$	112

Income before taxes:
Pizza Inn Franchising	$	1,817		$	1,602		$	3,648		$	3,263
Pie Five Franchising		200			260			401			469
Combined		2,017			1,862			4,049			3,732
Corporate administration and other		(1,266	)		(1,322	)		(2,603	)		(2,674	)
Income before taxes	$	751		$	540		$	1,446		$	1,058

Geographic information (revenues):
United States	$	2,798		$	2,701		$	5,785		$	5,735
Foreign countries		71			45			134			98
Consolidated revenues	$	2,869		$	2,746		$	5,919		$	5,833

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 29, 2024	Sep. 29, 2024	Dec. 24, 2023	Sep. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 607	$ 526	$ 553	$ 386	$ 1,133	$ 939

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 29, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy (Policies)

6 Months Ended

Dec. 29, 2024

Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Short Term Investments

Short-Term Investments

Fair Value Measurements

Level 1:

Inputs are unadjusted quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2:

Level 3:

Inputs are unobservable and therefore reflect management’s best estimate of the assumptions that market participants would use in pricing the asset or liability.

The following table summarizes the Company’s financial assets and financial liabilities measured at fair value (in thousands):

	December 29, 2024								June 30, 2024
Fair Value Measurements	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
U.S. Treasury bills	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945
	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945

The Company has no financial assets or liabilities classified within Level 3 of the valuation hierarchy.

Accounts Receivable and Allowance for Credit Losses

Changes in the allowance for credit losses from continuing operations consisted of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024			December 24, 2023		December 29, 2024			December 24, 2023
Balance at beginning of year	$	40		$	11	$	57		$	58
Provision (recovery) for credit losses		9			11		(8	)		36
Amounts written off		(7	)		—		(7	)		(72	)
Ending balance	$	42		$	22	$	42		$	22

Fiscal Quarters

The three and six month periods ended December 29, 2024 and December 24, 2023 each contained 13 weeks and 26 weeks, respectively.

Use of Management Estimates

Recent Accounting Pronouncements

Revenue Recognition

The following describes principal activities, separated by major product or service, from which the Company generates its revenues:

Franchise Revenues

Franchise royalties, which are based on a percentage of net retail sales, are recognized as sales occur.

Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer.

Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place.

Rental Income

Total revenues consist of the following (in thousands):

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Franchise royalties	$	1,144	$	1,171	$	2,265	$	2,396
Supplier and distributor incentive revenues		1,156		1,051		2,348		2,151
Franchise license fees		36		50		64		151
Area development exclusivity fees and foreign master license fees		3		3		6		7
Advertising fund contributions		502		426		966		848
Supplier convention funds		—		—		217		187
Rental income		23		38		46		85
Other		5		7		7		8
	$	2,869	$	2,746	$	5,919	$	5,833

Stock-Based Compensation

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 29, 2024

Summary of Significant Accounting Policies [Abstract]

Financial Assets and Financial Liabilities Measured at Fair Value

The following table summarizes the Company’s financial assets and financial liabilities measured at fair value (in thousands):

	December 29, 2024								June 30, 2024
Fair Value Measurements	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
U.S. Treasury bills	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945
	$	6,045	$	—	$	—	$	6,045	$	4,945	$	—	$	—	$	4,945

Allowance for Credit Losses

Changes in the allowance for credit losses from continuing operations consisted of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024			December 24, 2023		December 29, 2024			December 24, 2023
Balance at beginning of year	$	40		$	11	$	57		$	58
Provision (recovery) for credit losses		9			11		(8	)		36
Amounts written off		(7	)		—		(7	)		(72	)
Ending balance	$	42		$	22	$	42		$	22

Total Revenues

Total revenues consist of the following (in thousands):

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Franchise royalties	$	1,144	$	1,171	$	2,265	$	2,396
Supplier and distributor incentive revenues		1,156		1,051		2,348		2,151
Franchise license fees		36		50		64		151
Area development exclusivity fees and foreign master license fees		3		3		6		7
Advertising fund contributions		502		426		966		848
Supplier convention funds		—		—		217		187
Rental income		23		38		46		85
Other		5		7		7		8
	$	2,869	$	2,746	$	5,919	$	5,833

Leases (Tables)

6 Months Ended

Dec. 29, 2024

Leases [Abstract]

Components of Total Lease Expense

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Operating lease cost	$	103		$	117		$	207		$	240
Sublease income		(23	)		(38	)		(46	)		(85	)
Total lease expense, net of sublease income	$	80		$	79		$	161		$	155

Weighted Average Remaining Lease Term and Weighted Average Discount Rate

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

	December 29, 2024			December 24, 2023
Weighted average remaining lease term	2.1 Years			2.0 Years
Weighted average discount rate		4.1	%		4.0	%

Maturities of Operating Lease Liabilities

Operating lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases
2025		201
2026		388
2027		197
2028		6
2029		6
Thereafter		1
Total operating lease payments	$	799
Less: imputed interest		(35	)
Total operating lease liability	$	764

Stock-Based Compensation (Tables)

6 Months Ended

Dec. 29, 2024

Stock-Based Compensation [Abstract]

Outstanding Stock Options

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Six Months Ended
	December 29, 2024		December 24, 2023
	Shares		Shares
Outstanding at beginning of year		114,286		151,750

Granted		—		—
Exercised		—		—
Forfeited/Canceled/Expired		—		(8,664	)

Outstanding at end of period		114,286		143,086

Exercisable at end of period		114,286		143,086

Summary of Restricted Stock Units

	Six Months Ended
	December 29, 2024			December 24, 2023
Unvested at beginning of year		269,063			885,688
Performance adjustment		34,351			(25,223	)
Granted		142,328			131,460
Issued		(198,414	)		(588,589	)
Forfeited		—			(101,461	)
Unvested at end of period		247,328			301,875

Earnings per Share (EPS) (Tables)

6 Months Ended

Dec. 29, 2024

Earnings per Share (EPS) [Abstract]

Earnings per Share Basic and Diluted

	Three Months Ended				Six Months Ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Net income available to common shareholders	$	607	$	553	$	1,133	$	939

BASIC:
Weighted average common shares		14,690		14,444		14,638		14,299

Net income per common share	$	0.04	$	0.04	$	0.08	$	0.07

DILUTED:
Weighted average common shares		14,690		14,444		14,638		14,299
Dilutive stock options and restricted stock units		26		21		22		20
Weighted average common shares outstanding		14,716		14,465		14,660		14,319

Net income per common share	$	0.04	$	0.04	$	0.08	$	0.07

Income Taxes (Tables)

6 Months Ended

Dec. 29, 2024

Income Taxes [Abstract]

Provision for Income Taxes

Total income tax expense consists of the following (in thousands):

	Three Months Ended					Six Months Ended
	December 29, 2024		December 24, 2023			December 29, 2024		December 24, 2023
Federal tax expense (benefit)	$	121	$	(23	)	$	264	$	85
State tax expense		23		10			49		34
Total income tax expense (benefit)	$	144	$	(13	)	$	313	$	119

Segment Reporting (Tables)

6 Months Ended

Dec. 29, 2024

Segment Reporting [Abstract]

Segment Reporting Information

	Three Months Ended						Six Months Ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Net sales and operating revenues:
Pizza Inn Franchising	$	2,541		$	2,271		$	5,261		$	4,875
Pie Five Franchising		305			437			612			873
Corporate administration and other		23			38			46			85
Consolidated revenues	$	2,869		$	2,746		$	5,919		$	5,833

Depreciation and amortization:
Corporate administration and other	$	53		$	57		$	96		$	112
Depreciation and amortization	$	53		$	57		$	96		$	112

Income before taxes:
Pizza Inn Franchising	$	1,817		$	1,602		$	3,648		$	3,263
Pie Five Franchising		200			260			401			469
Combined		2,017			1,862			4,049			3,732
Corporate administration and other		(1,266	)		(1,322	)		(2,603	)		(2,674	)
Income before taxes	$	751		$	540		$	1,446		$	1,058

Geographic information (revenues):
United States	$	2,798		$	2,701		$	5,785		$	5,735
Foreign countries		71			45			134			98
Consolidated revenues	$	2,869		$	2,746		$	5,919		$	5,833

Summary of Significant Accounting Policies - Short-Term Investments (Details) - U.S. Treasury Bills [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023	Jun. 30, 2024
Summary of Significant Accounting Policies [Line Items]
Short term investments	$ 6,000		$ 6,000		$ 4,900
Interest income	$ 87	$ 46	$ 169	$ 48

Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Level 3 [Member] - USD ($)	Dec. 29, 2024	Jun. 30, 2024
Summary of Significant Accounting Policies [Line Items]
Fair value measurements assets	$ 0	$ 0
Fair value measurements liabilities	$ 0

Summary of Significant Accounting Policies - Financial Assets and Financial Liabilities Measured at Fair Value (Details) - USD ($)	Dec. 29, 2024	Jun. 30, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	$ 6,045	$ 4,945
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	6,045	4,945
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	0	0
US Treasury Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	6,045	4,945
US Treasury Bills [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	6,045	4,945
US Treasury Bills [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	0	0
US Treasury Bills [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements assets	$ 0	$ 0

Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Summary of Significant Accounting Policies [Line Items]
Finance charges rate			18.00%
Provision (recovery) for credit losses	$ 9	$ 11	$ (8)	$ 36

Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	$ 40	$ 11	$ 57	$ 58
Provision (recovery) for credit losses	9	11	(8)	36
Amounts written off	(7)		(7)	(72)
Ending balance	$ 42	$ 22	$ 42	$ 22

Summary of Significant Accounting Policies - Revenue Recognition (Details)	6 Months Ended
	Dec. 29, 2024
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Amortization term of franchise license fees	5 years
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Amortization term of franchise license fees	20 years

Summary of Significant Accounting Policies - Total Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 2,869	$ 2,746	$ 5,919	$ 5,833
Franchise Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,144	1,171	2,265	2,396
Supplier and Distributor Incentive Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,156	1,051	2,348	2,151
Franchise License Fees [Member]
Disaggregation of Revenue [Line Items]
Revenues	36	50	64	151
Area Development Exclusivity Fees and Foreign Master License Fees [Member]
Disaggregation of Revenue [Line Items]
Revenues	3	3	6	7
Advertising Fund Contributions [Member]
Disaggregation of Revenue [Line Items]
Revenues	502	426	966	848
Supplier Convention Funds [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	217	187
Rental Income [Member]
Disaggregation of Revenue [Line Items]
Revenues	23	38	46	85
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 5	$ 7	$ 7	$ 8

Leases (Details)	Dec. 29, 2024
Minimum [Member] \| Information Technology Equipment Agreements [Member]
Lessee, Lease, Description [Line Items]
Term of contract	1 year
Minimum [Member] \| Office Space Agreements [Member]
Lessee, Lease, Description [Line Items]
Term of contract	1 year
Maximum [Member] \| Information Technology Equipment Agreements [Member]
Lessee, Lease, Description [Line Items]
Term of contract	5 years
Maximum [Member] \| Office Space Agreements [Member]
Lessee, Lease, Description [Line Items]
Term of contract	10 years

Leases - Components of Total Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Components of Total Lease Expense [Abstract]
Operating lease cost	$ 103	$ 117	$ 207	$ 240
Sublease income	(23)	(38)	(46)	(85)
Total lease expense, net of sublease income	$ 80	$ 79	$ 161	$ 155

Leases - Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Dec. 29, 2024	Dec. 24, 2023
Weighted Average Remaining Lease Term and Discount Rate [Abstract]
Weighted average remaining lease term	2 years 1 month 6 days	2 years
Weighted average discount rate	4.10%	4.00%

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Dec. 29, 2024 USD ($)
Maturities of Operating Lease Liabilities [Abstract]
2025	$ 201
2026	388
2027	197
2028	6
2029	6
Thereafter	1
Total operating lease payments	799
Less: imputed interest	(35)
Total operating lease liability	$ 764

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense recognized	$ 0	$ 0	$ 0	$ 0
Unamortized stock-based compensation expense	0		0
Restricted Stock Units [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense recognized	53	$ 3	126	$ 82
Unamortized stock-based compensation expense	$ 492		$ 492
Amortization period			34 months

Stock-Based Compensation - Outstanding Stock Options (Details) - Stock Options [Member] - shares	6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023
Summary of Shares of Common Stock Subject to Outstanding Stock Options [Rollforward]
Outstanding at beginning of year (in shares)	114,286	151,750
Granted (in shares)	0	0
Exercised (in shares)	0	0
Forfeited/Canceled/Expired (in shares)	0	(8,664)
Outstanding at end of period (in shares)	114,286	143,086
Exercisable at end of Period (in shares)	114,286	143,086

Stock-Based Compensation - Summary of Restricted Stock Units (Details) - Restricted Stock Units [Member] - shares	6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested at beginning of year (in shares)	269,063	885,688
Performance adjustment (in shares)	34,351	(25,223)
Granted (in shares)	142,328	131,460
Issued (in shares)	(198,414)	(588,589)
Forfeited (in shares)	0	(101,461)
Unvested at end of period (in shares)	247,328	301,875

Earnings per Share (EPS) (Details) - USD ($)	3 Months Ended		6 Months Ended
Earnings per Share (EPS) (Details) - USD ($)	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercisable options to purchase shares of common stock excluded from computation of diluted EPS (in shares)	74,286	103,086	74,286	103,086
Intrinsic value of options outstanding (in Dollars)	$ 0	$ 0	$ 0	$ 0
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercisable options to purchase shares of common stock excluded from computation of diluted EPS (in shares)	142,328	0	247,328	90,625
Minimum [Member] \| Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercisable options to purchase shares of common stock exercise price (in dollars per share) (in Dollars per share)	$ 3.95	$ 3.95	$ 3.95	$ 3.95
Maximum [Member] \| Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercisable options to purchase shares of common stock exercise price (in dollars per share) (in Dollars per share)	$ 13.11	$ 13.11	$ 13.11	$ 13.11

Earnings per Share (EPS) - Earnings per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Earnings Per Share [Abstract]
Net income available to common shareholders (in Dollars)	$ 607	$ 553	$ 1,133	$ 939
BASIC:
Weighted average common shares (in shares)	14,690	14,444	14,638	14,299
Net income per common share (in Dollars per share)	$ 0.04	$ 0.04	$ 0.08	$ 0.07
DILUTED:
Weighted average common shares (in shares)	14,690	14,444	14,638	14,299
Dilutive stock options and restricted stock units (in shares)	26	21	22	20
Weighted average common shares outstanding (in shares)	14,716	14,465	14,660	14,319
Net income per common share (in Dollars per share)	$ 0.04	$ 0.04	$ 0.08	$ 0.07

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Income Taxes [Abstract]
Federal tax expense (benefit)	$ 121	$ (23)	$ 264	$ 85
State tax expense	23	10	49	34
Total income tax expense (benefit)	$ 144	$ (13)	$ 313	$ 119

Segment Reporting (Details)	6 Months Ended
Segment Reporting (Details)	Dec. 29, 2024 Segment
Segment Reporting [Abstract]
Number of reportable segments	3
Number of operating segments	3

Segment Reporting - Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2024	Dec. 24, 2023	Dec. 29, 2024	Dec. 24, 2023
Segment Reporting Information [Line Items]
Consolidated revenues	$ 2,869	$ 2,746	$ 5,919	$ 5,833
Depreciation and amortization	53	57	96	112
Income before taxes	751	540	1,446	1,058
Operating Segments [Member]
Segment Reporting Information [Line Items]
Income before taxes	2,017	1,862	4,049	3,732
Reportable Geographical Components [Member]
Segment Reporting Information [Line Items]
Consolidated revenues	2,869	2,746	5,919	5,833
United States [Member] \| Reportable Geographical Components [Member]
Segment Reporting Information [Line Items]
Consolidated revenues	2,798	2,701	5,785	5,735
Foreign Countries [Member] \| Reportable Geographical Components [Member]
Segment Reporting Information [Line Items]
Consolidated revenues	71	45	134	98
Pizza Inn Franchising [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated revenues	2,541	2,271	5,261	4,875
Income before taxes	1,817	1,602	3,648	3,263
Pie Five Franchising [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated revenues	305	437	612	873
Income before taxes	200	260	401	469
Corporate Administration and Other [Member]
Segment Reporting Information [Line Items]
Consolidated revenues	23	38	46	85
Depreciation and amortization	53	57	96	112
Corporate Administration and Other [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Income before taxes	$ (1,266)	$ (1,322)	$ (2,603)	$ (2,674)

Rave Restaurant (NASDAQ:RAVE)
Historical Stock Chart
From Jan 2025 to Feb 2025

Click Here for more Rave Restaurant Charts.

Rave Restaurant (NASDAQ:RAVE)
Historical Stock Chart
From Feb 2024 to Feb 2025

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

RAVE Rave Restaurant Group Inc

Rave Restaurant Group Inc News

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

RAVE Rave Restaurant Group Inc

Rave Restaurant Group Inc News

Your Recent History

Company

Business

Popular

Get The App

Go Ad-Free