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What changed in RAVE RESTAURANT GROUP, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of RAVE RESTAURANT GROUP, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+84 added−80 removedSource: 10-K (2025-09-25) vs 10-K (2024-09-26)

Top changes in RAVE RESTAURANT GROUP, INC.'s 2025 10-K

84 paragraphs added · 80 removed · 68 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeAs of June 30, 2024, there were 24 Pizza Inn restaurants operating internationally. Except for three restaurants in Honduras and one restaurant in New Zealand, all of the Pizza Inn restaurants operated or sub-licensed by our international master licensees are in the United Arab Emirates, Saudi Arabia and adjoining countries.
Biggest changeAs of June 29, 2025, there were 22 Pizza Inn restaurants operating internationally. Except for three restaurants in Honduras and three restaurants in New Zealand, all of the Pizza Inn restaurants operated or sub-licensed by our international master licensees are in Saudi Arabia and adjoining countries in the Middle East.
General 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 (“Express Units”) restaurants 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”.
General 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”.
Buffet Units are generally located in free standing buildings or strip center locations in retail developments near offices, shopping centers and residential areas. The current standard Buffet Units are between 2,100 and 4,500 square feet in size and seat 120 to 185 customers. The interior decor is designed to promote a casual, lively, contemporary, family-style atmosphere.
Buffet Units are generally located in free standing buildings or strip center locations in retail developments near offices, shopping centers and residential areas. The current standard Buffet Units are between 2,100 and 4,500 square feet in size and seat 50 to 185 customers. The interior decor is designed to promote a casual, lively, contemporary, family-style atmosphere.
We plan to expand our Pizza Inn branded domestic restaurant base primarily through opening new franchised restaurants with new and existing franchisees. We expect to evaluate the continued development of new Pizza Inn Buffet and Delco Units in international markets in fiscal 2025. 3 Index The Company previously granted area developer rights for Pizza Inn restaurants in existing domestic markets.
We plan to expand our Pizza Inn branded domestic restaurant base primarily through opening new franchised restaurants with new and existing franchisees. We expect to evaluate the continued development of new Pizza Inn Buffet and Delco Units in international markets in fiscal 2026. 3 Index The Company previously granted area developer rights for Pizza Inn restaurants in existing domestic markets.
Pizza Inn Ghost Kitchen Units primarily serves customers online through third-party delivery companies and are located in a Pie Five restaurant. Dine-in, carryout, or catering services are not offered. We have attempted to strategically locate Pizza Inn Ghost Kitchen Units in areas where Pie Five restaurants are presently located, but Pizza Inn is not.
Pizza Inn Ghost Kitchen Units primarily serve customers online through third-party delivery companies and are located in a Pie Five restaurant. Dine-in, carryout, or catering services are not offered. We have attempted to strategically locate Pizza Inn Ghost Kitchen Units in areas where Pie Five restaurants are presently located, but Pizza Inn is not.
We also maintain adherence to our standards through ongoing support and education of our licensees by our franchise business consultants, who are deployed locally in markets where our licensees are located. 4 Index International Franchise Operations We also offer master license rights to develop Pizza Inn and Pie Five restaurants in certain foreign countries, with negotiated fees, development schedules, and ongoing royalties.
We also maintain adherence to our standards through ongoing support and education of our licensees by our franchise business consultants, who are deployed locally in markets where our licensees are located. 4 Index International Franchise Operations We also offer master license rights to develop Pizza Inn and Pie Five restaurants in certain foreign countries, with negotiated fees, development schedules, and ongoing royalties although we are currently not actively marketing rights internationally for Pie Five.
Domestic Pizza Inn restaurants and kiosks were located predominantly in the southern half of the United States, with Texas, North Carolina, Arkansas and Mississippi accounting for approximately 23%, 16%, 14% and 10%, respectively, of the total number of domestic units.
Domestic Pizza Inn restaurants and kiosks were located predominantly in the southern half of the United States, with Texas, North Carolina, Arkansas and Mississippi accounting for approximately 20%, 19%, 10% and 10%, respectively, of the total number of domestic units.
Some foreign countries also have disclosure requirements and other laws regulating franchising and the franchisor-franchisee relationship. Employees As of June 30, 2024, we had 21 full-time employees. None of our employees are currently covered by collective bargaining agreements.
Some foreign countries also have disclosure requirements and other laws regulating franchising and the franchisor-franchisee relationship. Employees As of June 29, 2025, we had 24 full-time employees. None of our employees are currently covered by collective bargaining agreements.
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. As of June 30, 2024, we had 126 franchised Pizza Inn restaurants, 20 franchised Pie Five Units, and three licensed PIE Units.
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. As of June 29, 2025, we had 117 franchised Pizza Inn restaurants, 17 franchised Pie Five Units, and one licensed PIE Unit.
The 102 domestic franchised Pizza Inn restaurants were comprised of 78 Buffet Units, six Delco Units, 17 Express Units and one Pizza Inn Ghost Kitchen Unit. As of June 30, 2024, there were 24 international franchised Pizza Inn restaurants.
The 95 domestic franchised Pizza Inn restaurants were comprised of 79 Buffet Units, five Delco Units, 10 Express Units and one Pizza Inn Ghost Kitchen Unit. As of June 29, 2025, there were 22 international franchised Pizza Inn restaurants.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Company also maintains cybersecurity insurance providing coverage for certain costs related to security failures and specified cybersecurity related incidents. The Company recognizes that threat actors frequently target employees to gain unauthorized access to information systems. Therefore, each employee is required to complete information security and data privacy training to build awareness of cybersecurity risks to the organization.
Biggest changeThe Company requires the annual submission of SOC 1 security certificates from our third-party vendors which have access to our financial and sales data. The Company also maintains cybersecurity insurance providing coverage for certain costs related to security failures and specified cybersecurity related incidents. The Company recognizes that threat actors frequently target employees to gain unauthorized access to information systems.
The Audit Committee of the Board has the primary responsibility to oversee effective governance in managing risks associated with cybersecurity threats. Our Audit Committee is composed of members with diverse expertise, including risk management, technology, and finance, equipping them to oversee cybersecurity risks effectively.
The Company has a written policy for the employee reporting of any cybersecurity suspected incidents. The Audit Committee of the Board has the primary responsibility to oversee effective governance in managing risks associated with cybersecurity threats. Our Audit Committee is composed of members with diverse expertise, including risk management, technology, and finance, equipping them to oversee cybersecurity risks effectively.
Each quarterly meeting, management presents a cybersecurity update which includes results of testing by third-party vendors and any suspected cybersecurity incidents to the entire Board of Directors. Management would report any material cybersecurity breach immediately to the full Board of Directors. The Company has a written policy for the employee reporting of any cybersecurity suspected incidents.
Governance The Board of Directors are acutely aware of the critical nature of managing risks associated with cybersecurity threats. Each quarterly meeting, management presents a cybersecurity update which includes results of testing by third-party vendors and any suspected cybersecurity incidents to the entire Board of Directors. Management would report any material cybersecurity breach immediately to the full Board of Directors.
The Company has engaged third party vendor Knowbe4 to send each employee an email that mimics a potentially harmful phishing attempt each month and to report to management the results of the phishing security test. Governance The Board of Directors are acutely aware of the critical nature of managing risks associated with cybersecurity threats.
Therefore, each employee is required to complete information security and data privacy training to build awareness of cybersecurity risks to the organization. The Company has engaged a third-party vendor to periodically send each employee an email that mimics a potentially harmful phishing attempt each month and to report to management the results of the phishing security test.
Scans of the Company’s firewall are conducted during the first week of each quarter by third party vendor Contego. Any necessary remediation would also be provided by Contego after the scan, but none has been required.
Any necessary remediation would also be provided by the third-party vendor after the scan, but none has been required. The Company uses multiple third-party developed software to continually monitor technology systems for viruses, malicious software, executable harmful files, and other cybersecurity risks.
Removed
An annual penetration test is performed in April, which is a security test that simulates a real-world threat to the Company’s IT network and includes comprehensive “Dark Web” searches of all domain user emails. The test performed by Connection (Data Partner) revealed no current cybersecurity breaches.
Added
The Company employs a third-party vendor to securely host the Company’s data in a cloud-based storage system. The third-party vendor conducts quarterly vulnerability scans on both the hosted data environment and the Company’s corporate data network. Scans of the Company’s firewall are conducted regularly by the third-party vendor.
Removed
The Company uses SolarWinds with Sentinel One software from Contego to continually monitor technology systems for viruses, malicious software, executable harmful files, and other cybersecurity risks. The Company requires the annual submission of SOC 1 security certificates from our third-party vendors which have access to our financial and sales data.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeOne of the lease obligations have been subleased and three of the lease obligations have been assigned to franchisees. These leased properties range in size from 2,193 to 2,428 square feet, have annual rental rates ranging from approximately $35.00 to $42.00 per square foot and expire between 2025 and 2028.
Biggest changeThese leased properties range in size from 2,220 to 2,428 square feet, have annual rental rates ranging from approximately $35.00 to $39.00 per square foot and expire between 2025 and 2028.
The Company amended its lease agreement in June 2020 and elected to defer one-half of the monthly base rent for the period from June 2020 through May 2021. As of June 30, 2024, the Company had contingent and direct lease obligations for four additional restaurant locations.
The Company amended its lease agreement in June 2020 and elected to defer one-half of the monthly base rent for the period from June 2020 through May 2021. As of June 29, 2025, the Company had contingent and direct lease obligations for two additional restaurant locations. These lease obligations have been assigned to franchisees.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe Company had no sales of unregistered securities during fiscal 2024 or 2023. The Company has not paid dividends historically, and currently there is no intention to pay any dividends on our common stock, but dividends may be considered in the future.
Biggest changeThe Company has not paid dividends historically, and currently there is no intention to pay any dividends on our common stock, but dividends may be considered in the future. 2007 Stock Purchase Plan On May 23, 2007, the Company’s board of directors approved a stock purchase plan (the “2007 Stock Purchase Plan”) authorizing the purchase on our behalf of up to 1,016,000 shares of our common stock in the open market or in privately negotiated transactions.
See Note H to the audited consolidated financial statements included in this report.
See Note H to the audited consolidated financial statements included in this report. 9 Index
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company’s common stock is listed on the Capital Market of the NASDAQ Stock Market, LLC (“NASDAQ”) under the symbol “RAVE”. As of September 19, 2024, there were approximately 1,887 stockholders of record of the Company’s common stock.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company's common stock is listed on the Capital Market of the NASDAQ Stock Market, LLC (“NASDAQ”) under the symbol “RAVE”. As of September 18, 2025, there were approximately 1,886 stockholders of record of the Company's common stock.
Equity Compensation Plan Information The following table furnishes information with respect to the Company’s stock option equity compensation plans as of June 30, 2024: Plan Category Number of securities to be issued upon exercise of outstanding options, warrants, and rights Weighted average exercise price of outstanding options, warrants, and rights Number of securities remaining available for future issuance under equity compensation plans (1) Stock option compensation plans approved by security holders 114,286 $ 4.89 1,585,656 Stock option compensation plans not approved by security holders — — — RSU compensation plans approved by security holders 403,595 1.59 — Total 517,881 $ 2.32 1,585,656 (1) Securities remaining available for future issuance under the 2015 Long Term Incentive Program are net of a maximum of 403,595 shares of common stock issuable pursuant to outstanding restricted stock units, subject to applicable vesting requirements and performance criteria.
Equity Compensation Plan Information The following table furnishes information with respect to the Company’s stock option equity compensation plans as of June 29, 2025: Plan Category Number of securities to be issued upon exercise of outstanding options, warrants, and rights Weighted average exercise price of outstanding options, warrants, and rights Number of securities remaining available for future issuance under equity compensation plans (1) Stock option compensation plans approved by security holders 114,286 $ 4.89 1,533,362 Stock option compensation plans not approved by security holders — — — RSU compensation plans approved by security holders 272,555 2.50 — Total 386,841 $ 3.21 1,533,362 (1) Securities remaining available for future issuance under the 2015 Long Term Incentive Program are net of a maximum of 272,555 shares of common stock issuable pursuant to outstanding restricted stock units, subject to applicable vesting requirements and performance criteria.
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This number excludes stockholders whose stock is held in nominee or “street name” by brokers. The Company had no sales of unregistered securities during fiscal 2025 or 2024.
Added
On June 2, 2008, the Company’s board of directors amended the 2007 Stock Purchase Plan to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 2,016,000 shares.
Added
On April 22, 2009, the Company’s board of directors amended the 2007 Stock Purchase Plan again to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 3,016,000 shares.
Added
On June 28, 2022, the Company’s board of directors amended the 2007 Stock Purchase Plan again to increase the number of shares of common stock the Company may repurchase by 5,000,000 shares to a total of 8,016,000 shares. The 2007 Stock Purchase Plan does not have an expiration date.
Added
The following table furnishes information for purchases made pursuant to the 2007 Stock Purchase Plan during fiscal 2025: Period Total Number of Shares Repurchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Maximum Number of Shares that May Yet to Be Purchased Under the Plan February 3, 2025 - March 2, 2025 500,000 $ 2.40 6,518,026 1,497,974 Total 500,000 $ 2.40 The Company’s ability to purchase shares of our common stock is subject to various laws, regulations, and policies as well as the rules and regulations of the Securities and Exchange Commission (the “SEC”).
Added
The Company may also purchase shares of our common stock other than pursuant to the 2007 Stock Purchase Plan or other publicly announced plans or programs. On February 24, 2025, the Company repurchased 500,000 shares at $2.40 per share in a negotiated transaction with a third-party investor.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe 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. • “Store weeks” represent the total number of full weeks that specified restaurants were open during the period. • “Average units open” reflects the number of restaurants open during a reporting period weighted by the percentage of the weeks in a reporting period that each restaurant was open. • “Average weekly sales” for a specified period is calculated as total retail sales (excluding partial weeks) divided by store weeks in the period. • “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. 12 Index Financial Results The Company defines its operating segments as Pizza Inn Franchising and Pie Five Franchising.
Biggest changeThe sales results for a restaurant that was closed for more than seven days for remodeling or relocation within the same trade area are not included in the calculation. • “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. • “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. • “Closed and non-operating store costs” represent gain or loss on asset disposal, store closure expenses, lease termination expenses and expenses related to abandoned store sites.
Liquidity We expect to fund continuing operations and planned capital expenditures for the next fiscal year primarily from cash on hand and operating cash flow. Based on budgeted and year-to-date cash flow information, we believe that we have sufficient liquidity to satisfy our cash requirements for the 2025 fiscal year and beyond.
Liquidity We expect to fund continuing operations and planned capital expenditures for the next fiscal year primarily from cash on hand and operating cash flow. Based on budgeted and year-to-date cash flow information, we believe that we have sufficient liquidity to satisfy our cash requirements for the 2026 fiscal year and beyond.
Changes in the estimates and judgments could significantly impact the Company’s results of operations and financial condition in future periods. 15 Index Accounts receivable consist primarily of receivables generated from franchise royalties and supplier concessions.
Changes in the estimates and judgments could significantly impact the Company’s results of operations and financial condition in future periods. 16 Index Accounts receivable consist primarily of receivables generated from franchise royalties and supplier concessions.
The international restaurants were located in eight foreign countries predominantly in the Middle East. Fiscal years 2024 and 2023 included 53 weeks and 52 weeks, respectively. In order to reflect comparable 53 week periods, the first week of fiscal 2024 has been included in both periods in the presentation of retail sales, average units open and comparable store retail sales.
The international restaurants were located in eight foreign countries predominantly in the Middle East. Fiscal years 2025 and 2024 included 52 and 53 weeks, respectively. In order to reflect comparable 53-week periods, week 53 of fiscal 2024 has been included in both periods in the presentation of retail sales, average units open and comparable store retail sales.
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 June 30, 2024 and June 25, 2023, the Company had no uncertain tax positions.
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 June 29, 2025 and June 30, 2024, the Company had no uncertain tax positions.
Liquidity and Capital Resources Sources and Uses of Funds During fiscal 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.
Liquidity and Capital Resources Sources and Uses of Funds During fiscal 2025, 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, short-term investment discount amortization, and changes in working capital.
See “Forward-Looking Statements.” Overview The Company franchises pizza buffet (“Buffet Units”), delivery/carry-out (“Delco Units”), express (“Express Units”) restaurants 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”.
Overview The Company 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”.
Costs and Expenses: General and Administrative Expenses Total general and administrative expenses decreased by $0.2 million to $5.3 million for fiscal 2024 as compared to $5.5 million for fiscal 2023.
Costs and Expenses: General and Administrative Expenses Total general and administrative expenses decreased by $0.1 million to $5.2 million for fiscal 2025 as compared to $5.3 million for fiscal 2024.
At the end of tax year ended June 30, 2024, the Company had federal net operating loss carryforwards totaling $18.9 million that are available to reduce future taxable income and will begin to expire in 2035. Under the Tax Cuts and Jobs Act, approximately $1.3 million of the loss carryforwards are limited to 80% and do not expire.
At the end of tax year ended June 29, 2025, the Company had federal net operating loss carryforwards totaling $16 million that are available to reduce future taxable income and will begin to expire in 2035. Under the Tax Cuts and Jobs Act, approximately $1.3 million of the loss carryforwards are limited to 80% and do not expire.
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 fiscal 2024 was $4.9 million compared to cash used in investing activities of $15 thousand in fiscal 2023.
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 fiscal 2025 was $2.0 million compared to cash used in investing activities of $4.9 million in fiscal 2024.
The volume of supplier incentive revenues is dependent on the level of chain-wide 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 fiscal 2024 and fiscal 2023 were $12.2 million and $11.9 million, respectively.
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 fiscal 2025 and fiscal 2024 were $12.0 million and $12.2 million, respectively.
Tax years that remain subject to examination by the IRS are the years ended June 28, 2021 through June 25, 2023. Tax years that remain subject to examination by state authorities are the years ended June 30, 2020 through June 25, 2023.
Tax years that remain subject to examination by the IRS are the years ended June 28, 2022 through June 30, 2024. Tax years that remain subject to examination by state authorities are the years ended June 30, 2021 through June 30, 2024.
The following chart summarizes Pie Five restaurant activity for the fiscal year ended June 30, 2024: Fiscal Year Ended June 30, 2024 Beginning Units Opened Concept Change Transfer Closed Ending Units Pie Five Units - Franchised 27 — (2 ) 6 7 18 Pie Five Ghost Kitchen Units - Franchised — 2 — 1 — 2 Total Domestic Units 27 2 (2 ) 7 7 20 The was a net decrease of seven units in the total domestic Pie Five unit count during fiscal 2024.
The following chart summarizes Pie Five restaurant activity for the fiscal year ended June 29, 2025: Fiscal Year Ended June 29, 2025 Beginning Units Opened Concept Change Transfer Closed Ending Units Pie Five Units - Franchised 18 — (1 ) — 1 16 Pie Five Ghost Kitchen Units - Franchised 2 — — 1 1 1 Total Domestic Units 20 — (1 ) 1 2 17 The was a net decrease of three units in the total domestic Pie Five unit count during fiscal 2025.
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: 53 Weeks Ended June 30, 2024 July 2, 2023 Pie Five Retail Sales - Total Units (in thousands, except unit data) Pie Five Units - Franchised $ 16,875 $ 20,385 Pie Five Ghost Kitchen Units - Franchised 11 — Total Domestic Retail Sales $ 16,886 $ 20,385 Pie Five Comparable Store Retail Sales - Total $ 16,801 $ 17,450 Pie Five Average Units Open in Period Pie Five Units - Franchised 24 30 Pie Five Ghost Kitchen Units - Franchised 1 — Total Domestic Units 25 30 11 Index Pie Five total domestic retail sales decreased by $3.5 million, or 17.2%, for fiscal 2024 when compared to the prior year.
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: 53 Weeks Ended June 29, 2025 June 30, 2024 Pie Five Retail Sales - Total Domestic Units (in thousands, except unit data) Pie Five Units - Franchised $ 11,005 $ 16,875 Pie Five Ghost Kitchen Units - Franchised 274 11 Total Domestic Retail Sales $ 11,279 $ 16,886 Pie Five Comparable Store Retail Sales - Total $ 10,992 $ 11,999 Pie Five Average Units Open in Period Pie Five Units - Franchised 18 24 Pie Five Ghost Kitchen Units - Franchised 2 1 Total Domestic Units 20 25 Pie Five total domestic retail sales decreased by $5.6 million, or 33.2%, for fiscal 2025 when compared to the prior year.
Provision for Income Taxes Total income tax expense consists of the following (in thousands): Fiscal Year Ended June 30, 2024 June 25, 2023 Federal tax expense $ 530 $ 394 State tax expense 89 143 Total income tax expense $ 619 $ 537 For the year ended June 30, 2024, the Company recorded an income tax expense of $619 thousand.
Provision for Income Taxes Total income tax expense consists of the following (in thousands): Fiscal Year Ended June 29, 2025 June 30, 2024 Federal tax expense $ 793 $ 530 State tax expense 125 89 Total income tax expense $ 918 $ 619 For the year ended June 29, 2025, the Company recorded an income tax expense of $918 thousand.
Compared to the prior year, average Buffet Units open in the period increased from 73 to 76. Comparable store retail sales increased by $2.3 million to $100.9 million for fiscal 2024 as compared to the prior 53 weeks.
Compared to the prior year, average Buffet Units open in the period increased from 76 to 77. Comparable store retail sales increased by $1.9 million to $104.7 million for fiscal 2025 as compared to the prior 53 weeks.
Compared to the prior year, average units open in the period decreased from 30 to 25. Comparable store retail sales decreased by $0.6 million to $16.8 million for fiscal 2024 as compared to the prior year.
Compared to the prior year, average units open in the period decreased from 25 to 20. Comparable store retail sales decreased by $1.0 million to $11.0 million for fiscal 2025 as compared to the prior year.
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown (in thousands): Fiscal Year Ended June 30, 2024 June 25, 2023 Net income $ 2,473 $ 1,613 Interest (income) expense (153 ) 1 Income taxes 619 537 Depreciation and amortization 219 214 EBITDA $ 3,158 $ 2,365 Stock-based compensation expense 149 345 Severance 5 — Impairment of long-lived assets and other lease charges — 5 Franchisee default and closed store revenue (156 ) (13 ) Adjusted EBITDA $ 3,156 $ 2,702 Results of operations for the fiscal years 2024 and 2023 included 53 weeks and 52 weeks, respectively.
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown (in thousands): Fiscal Year Ended June 29, 2025 June 30, 2024 Net income $ 2,702 $ 2,473 Interest income (354 ) (153 ) Income taxes 918 619 Depreciation and amortization 182 219 EBITDA $ 3,448 $ 3,158 Stock-based compensation expense 136 149 Severance 12 5 Franchisee default and closed store revenue (13 ) (156 ) Adjusted EBITDA $ 3,583 $ 3,156 Results of operations for the fiscal years 2025 and 2024 included 52 and 53 weeks, respectively.
The 4.1% decrease was driven by decreased salary and stock-based compensation expense. 13 Index 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 decreased by $0.3 million to $3.7 million in fiscal 2024 as compared to $4.0 million for fiscal 2023.
The 1.0% decrease was driven by decreases in recruiting fees, offset by increases in salaries. 14 Index 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 decreased by $0.3 million to $3.4 million in fiscal 2025 as compared to $3.7 million for fiscal 2024.
The Company does not currently have any finance leases. The Company capitalizes operating leases on the Consolidated Balance Sheets through a right of use asset and a corresponding lease liability.
The Company does not currently have any finance leases. The Company capitalizes operating leases on the 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.
The following table summarizes domestic comparable store retail sales for the Company. 53 Weeks Ended June 30, 2024 July 2, 2023 (in thousands) Pizza Inn Domestic Comparable Store Retail Sales $ 100,875 $ 98,610 Pie Five Domestic Comparable Store Retail Sales 16,801 17,450 Total Rave Comparable Store Retail Sales $ 117,676 $ 116,060 10 Index 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: 53 Weeks Ended June 30, 2024 July 2, 2023 Pizza Inn Retail Sales - Total Domestic Units (in thousands, except unit data) Buffet Units - Franchised $ 102,498 $ 96,872 Delco/Express Units - Franchised 3,846 5,418 PIE Units - Licensed 70 208 Pizza Inn Ghost Kitchen Units - Franchised 4 — Total Domestic Retail Sales $ 106,418 $ 102,498 Pizza Inn Comparable Store Retail Sales - Total Domestic $ 100,875 $ 98,610 Pizza Inn Average Units Open in Period Buffet Units - Franchised 76 73 Delco/Express Units - Franchised 29 44 PIE Units - Licensed 4 8 Pizza Inn Ghost Kitchen Units - Franchised — — Total Domestic Units 109 125 Pizza Inn total domestic retail sales increased by $3.9 million, or 3.8%, for fiscal 2024 when compared to the prior 53 weeks.
The following table summarizes domestic comparable store retail sales for the Company. 53 Weeks Ended June 29, 2025 June 30, 2024 (in thousands) Pizza Inn Domestic Comparable Store Retail Sales $ 104,717 $ 102,791 Pie Five Domestic Comparable Store Retail Sales 10,992 11,999 Total Rave Comparable Store Retail Sales $ 115,709 $ 114,790 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: 53 Weeks Ended June 29, 2025 June 30, 2024 Pizza Inn Retail Sales - Total Domestic Units (in thousands, except unit data) Buffet Units - Franchised $ 105,204 $ 102,498 Delco/Express Units - Franchised 3,209 3,846 PIE Units - Licensed 24 70 Pizza Inn Ghost Kitchen Units - Franchised 7 4 Total Domestic Retail Sales $ 108,444 $ 106,418 Pizza Inn Comparable Store Retail Sales - Total Domestic $ 104,717 $ 102,791 Pizza Inn Average Units Open in Period Buffet Units - Franchised 77 76 Delco/Express Units - Franchised 21 29 PIE Units - Licensed 1 4 Pizza Inn Ghost Kitchen Units - Franchised 1 — Total Domestic Units 100 109 Pizza Inn total domestic retail sales increased by $2.0 million, or 1.9%, for fiscal 2025 when compared to the prior 53 weeks.
Diluted net income per common share increased $0.07 to net income of $0.17 per share for fiscal 2024 compared to a net income of $0.10 per share in the prior fiscal year.
Earnings per Share Basic net income per common share increased $0.02 per share to $0.19 per share for fiscal 2025 compared to $0.17 per share in the prior fiscal year. Diluted net income per common share increased $0.02 per share to $0.19 per share for fiscal 2025 compared to $0.17 per share in the prior fiscal year.
Future sources of taxable income are also considered in determining the amount of any required valuation allowance. There are no material uncertain tax positions.
Future sources of taxable income are also considered in determining the amount of the recorded valuation allowance.
The following chart summarizes Pizza Inn restaurant activity for the fiscal year ended June 30, 2024: Fiscal Year Ended June 30, 2024 Beginning Units Opened Concept Change Transfer Closed Ending Units Buffet Units - Franchised 77 2 2 4 3 78 Delco/Express Units - Franchised 41 1 — — 19 23 PIE Units - Licensed 5 — — — 2 3 Pizza Inn Ghost Kitchen Units - Franchised — 1 — — — 1 Total Domestic Units 123 4 2 4 24 105 International Units (all types) 34 6 — — 16 24 Total Units 157 10 2 4 40 129 There was a net decrease of 18 units in the total domestic Pizza Inn unit count during fiscal 2024.
For fiscal 2025, 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. 12 Index The following chart summarizes Pizza Inn restaurant activity for the fiscal year ended June 29, 2025: Fiscal Year Ended June 29, 2025 Beginning Units Opened Concept Change Transfer Closed Ending Units Buffet Units - Franchised 78 2 1 5 2 79 Delco/Express Units - Franchised 23 — — — 8 15 PIE Units - Licensed 3 — — — 2 1 Pizza Inn Ghost Kitchen Units - Franchised 1 — — — — 1 Total Domestic Units 105 2 1 5 12 96 International Units (all types) 24 8 — — 10 22 Total Units 129 10 1 5 22 118 There was a net decrease of nine units in the total domestic Pizza Inn unit count during fiscal 2025.
Pizza Inn Franchise and License Pizza Inn franchise revenues increased by $0.5 million to $10.3 million for fiscal 2024 as compared to $9.8 million for fiscal 2023. The 4.9% increase was driven by increases in supplier and distributor incentives.
Pizza Inn Franchise and License Pizza Inn franchise revenues increased by $0.5 million to $10.8 million for fiscal 2025 as compared to $10.3 million for fiscal 2024.
Net income increased $0.9 million to net income of $2.5 million for fiscal 2024 compared to a net income of $1.6 million for the prior fiscal year on revenues of $12.2 million for fiscal 2024 as compared to $11.9 million in fiscal 2023.
Net income increased $0.2 million to net income of $2.7 million for fiscal 2025 compared to a net income of $2.5 million for the prior fiscal year on revenues of $12.0 million for fiscal 2025 as compared to $12.2 million in fiscal 2024. 15 Index EBITDA and Adjusted EBITDA Adjusted EBITDA for the fiscal year ended June 29, 2025, increased to $3.6 million compared to $3.2 million for the prior fiscal year.
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.
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.
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 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.
Pie Five Franchise and License Pie Five franchise revenues decreased by $0.2 million to $1.7 million for fiscal 2024 as compared to $1.9 million for fiscal 2023. The 8.7% decrease was driven by decreases in domestic royalties and advertising fund revenues, offset by increases in default and closed store revenues.
Pie Five Franchise and License Pie Five franchise revenues decreased by $0.5 million to $1.2 million for fiscal 2025 as compared to $1.7 million for fiscal 2024. The 30.7% decrease was driven by decreases in domestic royalties related to a decrease in system-wide sales.
At June 30, 2024, franchised and licensed restaurants consisted of the following: Fiscal Year Ended June 30, 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 105 $ 106,418 20 $ 16,886 125 $ 123,304 International Franchised 24 $ 5,486 — $ — 24 $ 5,486 The domestic units were located in 15 states predominately situated in the southern half of the United States.
At June 29, 2025, franchised and licensed restaurants consisted of the following: 11 Index Fiscal Year Ended June 29, 2025 (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 96 $ 106,362 17 $ 10,998 113 $ 117,360 International Franchised 22 $ 6,574 — $ — 22 $ 6,574 The domestic units were located in 15 states predominately situated in the southern half of the United States.
Pizza Inn franchise expenses decreased $0.1 million to $3.0 million for fiscal 2024 compared to $3.1 million for fiscal 2023. The 2.4% decrease was driven by decreases in advertising fees. Pie Five franchise expenses decreased $0.2 million to $0.7 million for fiscal 2024 compared to $0.9 million for fiscal 2023.
Pizza Inn franchise expenses remained relatively stable at $3.0 million for fiscal 2025 as compared to fiscal 2024. The 0.4% increase was driven by increases in advertising fees, offset by decreases in salaries directly related to franchise operations. Pie Five franchise expenses decreased $0.3 million to $0.4 million for fiscal 2025 compared to $0.7 million for fiscal 2024.
The following is additional business segment information for the Fiscal Years ended June 30, 2024 and June 25, 2023 (in thousands): Pizza Inn Franchising Pie Five Franchising Corporate Total Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 REVENUES: Franchise and license revenues $ 10,295 $ 9,810 $ 1,708 $ 1,870 $ — $ — $ 12,003 $ 11,680 Rental income — — — — 131 186 131 186 Other income — — 16 23 — — 16 23 Total revenues 10,295 9,810 1,724 1,893 131 186 12,150 11,889 COSTS AND EXPENSES: General and administrative expenses — — — — 5,267 5,490 5,267 5,490 Franchise expenses 2,985 3,059 671 897 — — 3,656 3,956 Impairment of long-lived assets and other lease charges — — — — — 5 — 5 Provision for credit losses — — — — 69 73 69 73 Interest (income) expense — — — — (153 ) 1 (153 ) 1 Depreciation and amortization expense — — — — 219 214 219 214 Total costs and expenses 2,985 3,059 671 897 5,402 5,783 9,058 9,739 INCOME/(LOSS) BEFORE TAXES $ 7,310 $ 6,751 $ 1,053 $ 996 $ (5,271 ) $ (5,597 ) $ 3,092 $ 2,150 Revenues: Revenues are derived from franchise royalties, supplier and distributer incentives, franchise license fees, area development exclusivity fees and foreign master license fees, advertising funds, supplier convention funds, sublease rental income, and other income.
The following is additional business segment information for the Fiscal Years ended June 29, 2025 and June 30, 2024 (in thousands): Pizza Inn Franchising Pie Five Franchising Corporate Total Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 REVENUES: Franchise and license revenues $ 10,790 $ 10,295 $ 1,184 $ 1,709 $ — $ — $ 11,974 $ 12,004 Rental income — — — — 53 131 53 131 Other income — — 12 15 — — 12 15 Total revenues 10,790 10,295 1,196 1,724 53 131 12,039 12,150 COSTS AND EXPENSES: General and administrative expenses — — — — 5,215 5,267 5,215 5,267 Franchise expenses 2,997 2,985 400 671 — — 3,397 3,656 Provision (recovery) for credit losses — — — — (21 ) 69 (21 ) 69 Interest income — — — — (354 ) (153 ) (354 ) (153 ) Depreciation and amortization expense — — — — 182 219 182 219 Total costs and expenses 2,997 2,985 400 671 5,022 5,402 8,419 9,058 INCOME/(LOSS) BEFORE TAXES $ 7,793 $ 7,310 $ 796 $ 1,053 $ (4,969 ) $ (5,271 ) $ 3,620 $ 3,092 Revenues: Revenues are derived from franchise royalties, supplier and distributor incentives, franchise license fees, area development exclusivity fees and foreign master license fees, advertising fund contributions, supplier convention funds, rental income, and other income.
Interest income increased $153 thousand for fiscal 2024 to $153 thousand compared to zero in the prior year. The increase was primarily driven by interest received on U.S. Treasury bills. Amortization and Depreciation Expense Amortization and depreciation expense increased slightly for fiscal 2024, compared to fiscal 2023.
Interest Income Interest income increased by $201 thousand for fiscal 2025 to $354 thousand compared to $153 thousand in the prior year. The increase was primarily driven by interest received on short-term investments, all of which were U.S. Treasury bills.
There were four transfers in the total domestic Pizza Inn unit count during fiscal 2024. For fiscal 2024, the number of international Pizza Inn units decreased by 10 units.
There were five transfers in the total domestic Pizza Inn unit count during fiscal 2025. For fiscal 2025, the number of international Pizza Inn units decreased by two units. Eight units in Oman were closed following the non-renewal of their franchise agreement. There were zero transfers in the total international Pizza Inn unit count during fiscal 2025.
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 $0.3 million for fiscal 2024 compared to net cash used in financing activities of $5.0 million for fiscal 2023.
Net cash used in investing activities in fiscal 2025 was primarily attributable to increased activity related to the purchase and redemption of short-term investments. Cash flows used in financing activities generally reflect changes in the Company's stock and debt activity during the period.
Net cash used by financing activities in fiscal 2024 was primarily attributable to taxes paid on vested Restricted Stock Units (“RSUs”). Net cash used by financing activities in fiscal 2023 was primarily attributable to repurchases of the Company’s stock.
Net cash used in financing activities was $1.4 million for fiscal 2025 compared to net cash used in financing activities of $0.3 million for fiscal 2024. Net cash used by financing activities in fiscal 2025 was primarily attributable to repurchases of the Company's stock.
In the 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.
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.
Cash provided by operating activities was $2.7 million in fiscal 2024 compared to cash provided by operating activities of $2.6 million in fiscal 2023. The primary driver of increased operating cash flow during fiscal 2024 was increased net income due to lower employee related expenses.
Cash provided by operating activities was $3.4 million in fiscal 2025 compared to cash provided by operating activities of $2.8 million in fiscal 2024. The primary driver of increased operating cash flow during fiscal 2025 was increased collections of accounts receivable related to the payment of franchise receivables.
For fiscal 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.
For fiscal 2025, 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 highest-volume Pie Five unit closed during the last week of fiscal 2024. This location accounted for approximately 13.6% of Pie Five's total domestic retail sales for fiscal 2024.
Provision 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. Provision for credit losses decreased by $4 thousand to $69 thousand for fiscal 2024 as compared to $73 thousand for fiscal 2023.
The 40.4% decrease was driven by decreases in salaries directly related to franchise operations 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.
The federal and state tax expense was $530 thousand and $89 thousand, respectively. The change in both federal and state tax expense was primarily driven by the increase in net income, utilization of jurisdictional operating losses and a current year tax deduction for stock-based compensation. The Company utilized net operating losses to offset federal taxes.
The federal and state tax expense was $793 thousand and $125 thousand, respectively. The increase was primarily driven by increases in federal taxes, primarily due to higher taxable income and fewer discrete tax items related to restricted stock units vesting in the prior year. The Company utilized net operating losses to offset federal taxes payable.
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.
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.
In making such assessment, more weight is given to evidence that can be objectively verified, including recent operating performance. Future sources of taxable income are also considered in determining the amount of the recorded valuation allowance.
In assessing the need for a 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 assess 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.
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.
Management’s position is that all relevant requirements are met and necessary returns have been filed, and therefore the tax positions taken on the tax returns would be sustained upon examination. 14 Index Basic net income per common share increased $0.06 to net income of $0.17 per share for fiscal 2024 compared to a net income of $0.11 per share in the prior fiscal year.
Future sources of taxable income are also considered in determining the amount of any required valuation allowance. There are no material uncertain tax positions. Management’s position is that all relevant requirements are met and necessary returns have been filed, and therefore the tax positions taken on the tax returns would be sustained upon examination.
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.
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.
There was a net increase of one Pie Five Ghost Kitchen Units during fiscal 2024. Two Pie Five units converted to become Pizza Inn Buffet units. Of the seven Pie Five closures, two were due to lease expirations, one was closed by mutual decision of the franchise owner and Rave management, and four were unilaterally closed by franchise owner decision.
There was a net decrease of one Pie Five Ghost Kitchen Unit during fiscal 2025. One Pie Five unit converted to become a Pizza Inn Buffet unit.
Removed
For fiscal 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.
Added
See “Forward-Looking Statements.” A comparison of our results of operations and cash flows for fiscal year 2024 compared to fiscal year 2023 can be found under “Item 7.
Removed
Twelve units were terminated in Saudi Arabia for failure to pay royalties and subsequently a 50-unit development agreement was signed with a new franchise partner who opened five Pizza Inn units in Saudi Arabia in fiscal year 2024. There were zero transfers in the total international Pizza Inn unit count during fiscal 2024.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the SEC on September 26, 2024. Non-GAAP Financial Measures and Other Terms The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”).
Removed
We believe that Pie Five units will decrease modestly in future periods. 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.
Added
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.
Removed
The 25.2% decrease was driven by decreases in advertising fees and salaries. Impairment of Long-lived Assets and Other Lease Charges Impairment of long-lived assets and other lease charges was zero for fiscal 2024 compared to $5 thousand for fiscal 2023. The decrease was primarily due to impaired beverage equipment in the prior period.
Added
We believe that Pie Five units will decrease modestly in future periods. 13 Index Financial Results In addition to Corporate overhead support, the Company defines its operating segments as Pizza Inn Franchising and Pie Five Franchising.
Removed
The 4.7% decrease was driven by the write-off of bad debt, partially offset by the increase in accounts over 90 days. Interest Expense and Income Interest expense decreased $1 thousand for fiscal 2024 to zero compared to $1 thousand in the prior year.
Added
The 4.8% increase was driven by increased advertising fund revenues due to an increase in the average contribution rate from new stores and expiring rate abatements from existing stores and increased supplier and distributor incentives under the terms of new contracted pricing.
Removed
The increase was primarily the result of higher amortization of intangible assets from an increase in expenditures for developing a new prototype.
Added
For fiscal 2025, recoveries for credit losses were $21 thousand compared to provision for credit losses of $69 thousand for fiscal 2024. During fiscal 2025, the Company recorded a gain in provision for credit losses due to the recoveries of receivables that had been previously reserved, partially offset by losses due to write offs of receivables.
Removed
Adjusted EBITDA for the fiscal year ended June 30, 2024, increased to $3.2 million compared to $2.7 million for the prior fiscal year.
Added
Depreciation and Amortization Expense Depreciation and amortization expense decreased by $37 thousand for fiscal 2025 to $182 thousand compared to $219 thousand in the prior year. The decrease was primarily the result of lower depreciation of equipment due to an overall decrease in capital expenditures.
Removed
If impairment is indicated, the carrying value of an impaired asset is reduced to its fair value, based on discounted estimated future cash flows. The Company recognized pre-tax, non-cash impairment charges of zero and $5 thousand during fiscal 2024 and 2023, respectively. The Company had $0.1 million and $0.2 million in sublease income during fiscal 2024 and 2023, respectively.
Added
On February 24, 2025, the Company repurchased 500,000 shares at $2.40 per share in a negotiated transaction. Net cash used by financing activities in fiscal 2024 was primarily attributable to taxes paid on vested Restricted Stock Units ( “ RSUs ” ).
Removed
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.
Added
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.
Removed
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.

Other RAVE 10-K year-over-year comparisons