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Here are a few brief analogies for Rave Restaurant Group (RAVE):

• Imagine a smaller, regional company that combines the all-you-can-eat buffet style of Cici's Pizza with the traditional delivery/carryout model of a Pizza Hut.

• Think of it as the parent company of a smaller fast-casual pizza chain, similar to Blaze Pizza or MOD Pizza, which also owns and franchises more traditional pizza restaurants.

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• Pizza Inn Restaurants: Offers a variety of pizza dining experiences, including buffet-style, delivery/carry-out (delco), and express format restaurants.
• Pie Five Pizza Restaurants: Operates and franchises fast-casual restaurants specializing in customizable pizzas.
• Restaurant Franchising: Provides franchising services for both Pizza Inn and Pie Five Pizza Company brands to independent operators.

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Rave Restaurant Group, Inc. (RAVE) operates primarily as a franchisor, meaning a significant portion of its business involves selling franchise rights, ongoing support, and supplies to independent business operators.

Therefore, Rave Restaurant Group's major customers are its **franchisees**. These are the independent businesses and individuals who operate Pizza Inn and Pie Five restaurants under franchise agreements. As of June 27, 2021, the company had 156 franchised Pizza Inn restaurants, 33 franchised Pie Five Units, and 11 licensed Pizza Inn Express kiosks. These franchisees constitute the direct "company" customers of Rave Restaurant Group.

Since these franchisees are generally private business entities and not publicly traded companies, their specific names and public symbols cannot be provided.

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• Sysco Corporation (SYY)
• Performance Food Group Company (PFG)
• Berkshire Hathaway Inc. (BRK.A, BRK.B)

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Brandon Solano, Chief Executive Officer

Brandon Solano was appointed CEO of Rave Restaurant Group in October 2019. He has a reputation as a creative and unconventional leader in the foodservice industry. Prior to joining Rave, Solano served as Chief Marketing & Digital Officer of Pei Wei Asian Kitchen, where he drove positive traffic for the brand. He began his restaurant career at Domino's Pizza in 2008, serving as Vice President of Innovation, where he led the 2010 "New & Inspired" pizza launch, and later as Vice President of Development, where he designed the "Pizza Theatre" concept. Solano also held the position of Chief Marketing Officer at Wendy's, where he achieved positive traffic for the first time in a decade and created the successful "4 for $4" deal.

Jay Rooney, Chief Financial Officer

Jay Rooney was appointed Chief Financial Officer of Rave Restaurant Group in March 2024. Before joining Rave, he served as CFO at Dickey's Barbecue Pit for approximately six years, beginning in 2018. Prior to his time at Dickey's, Rooney held financial leadership positions at Brinker International for nearly two decades.

Zack Viljoen, Vice President of Operations for RAVE and General Manager of Pie Five

Zack Viljoen was promoted to Vice President of Operations for Rave and General Manager of Pie Five in March 2024. He previously served as Senior Director of Marketing and Strategy. In his current role, Viljoen is responsible for marketing and operations, training operations and compliance, and driving the reimagining of Pizza Inn buffets.

Denise Wilson, Associate Vice President of Supply Chain

Denise Wilson joined Rave Restaurant Group as Associate Vice President of Supply Chain in January 2024. She is an experienced strategic supply chain and distribution leader, with previous roles at restaurant brands such as Wingstop Restaurants, Inc., Nothing Bundt Cakes, and LSG Sky Chefs. This marks her second tenure with Rave, as she previously served as Sr. Director of Supply Chain and Customer Relations from 2002 to 2013, during which she was a key contributor to the development of the Pie Five concept.

Carlos Cojulun, Marketing Director of Pizza Inn

Carlos Cojulun was appointed Marketing Director of Pizza Inn in March 2024. He brings over three decades of marketing experience from his time at companies including Procter & Gamble and Amgen.

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Key Risks to Rave Restaurant Group (RAVE)

1. Underperformance and Shrinkage of the Pie Five Brand: Rave Restaurant Group faces a significant operational risk due to the sustained underperformance and shrinking footprint of its Pie Five Pizza Company brand. Pie Five has experienced a prolonged period of declining sales and store closures, with domestic comparable store sales declining by 7.2% in fiscal year 2025 and having seen its 18th consecutive quarter of sales declines in early 2020. This "two-speed brand problem," where Pie Five acts as a drag on the overall company while Pizza Inn shows growth, significantly impacts Rave's overall valuation and growth prospects. Pie Five's concept, once innovative, has become easily replicable by competitors, leading to a loss of market share and diminished brand distinctiveness.
2. Challenges of the Pizza Inn Buffet Model and Intense Market Competition: The Pizza Inn brand, with its focus on the buffet concept, faces inherent challenges. Operating a buffet-style restaurant in a market increasingly focused on health, cleanliness, and quality over quantity, presents difficulties, a trend that has seen other buffet concepts face steady declines for decades. While Pizza Inn has implemented measures to address cleanliness concerns, the model itself requires larger physical footprints and faces increased competition in major metropolitan areas from brands with multiple units. The overall pizza category is highly competitive, with Rave competing against national chains, regional players, and numerous local businesses, which can lead to downward pressure on prices, reduced demand, and lower margins.
3. Rising Operational Costs and Labor Shortages: Like the broader restaurant industry, Rave Restaurant Group is susceptible to significant increases in operational costs, including food, labor, utilities, and insurance, many of which are beyond the company's direct control. Specifically, the price of key ingredients like cheese can fluctuate significantly. Additionally, persistent labor shortages across the restaurant sector drive up wages and necessitate innovative retention strategies, posing a continuous challenge to profitability and operational stability for Rave and its franchisees.

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The rise of ghost kitchens and virtual brands poses a significant emerging threat. These operational models, which focus solely on delivery and carry-out without traditional dine-in facilities, often leverage shared commissary kitchens to achieve lower overhead costs and greater operational flexibility. This intensified competition directly impacts Rave Restaurant Group's Pizza Inn delco (delivery/carry-out) and Pie Five fast-casual segments by offering consumers more agile, potentially lower-cost, and diverse food options delivered to their homes, without the incumbent's burden of brick-and-mortar restaurant expenses. This trend challenges the traditional restaurant model by disaggregating food preparation from the dining experience, making it harder for conventional establishments to compete on price, convenience, and speed in the increasingly dominant delivery market.

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Pizza Restaurant Market

• Global: The global pizza foodservice market size was estimated at approximately USD 144.08 billion in 2025 and is projected to reach USD 257.17 billion by 2031, growing at a compound annual growth rate (CAGR) of 10.10% over 2026-2031. Another estimate places the global pizza market size at USD 161.8 billion in 2025, anticipating growth to USD 235.0 billion by 2034 with a CAGR of 4.10% from 2026-2034.
• U.S.: The United States pizza restaurant market was projected to reach USD 50.1 billion in revenue in 2024. The U.S. pizza restaurant market valuation is expected to expand from USD 49.75 billion in 2025 to USD 63.83 billion by 2033, demonstrating a steady CAGR of 3.1%.

Fast Casual Restaurant Market

• Global: The global fast casual restaurant market was valued at USD 124.5 billion in 2022 and is projected to grow to USD 337.8 billion by 2032, at a CAGR of 10.4% from 2023 to 2032. Other estimates indicate the global fast casual restaurants market size was USD 179.19 billion in 2024, with projections to reach USD 318.52 billion by 2033 at a CAGR of 6.6% from 2025–2033.
• U.S.: The United States fast casual restaurant market attained a value of USD 45.58 billion in 2024. This market is projected to reach USD 84.76 billion by 2034, growing at a CAGR of 6.40% between 2025 and 2034. The U.S. fast casual restaurants market size is also projected to increase by USD 84.5 billion, with a CAGR of 13.7% from 2024 to 2029, and is anticipated to reach USD 115.5 billion by 2026.

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Here are the expected drivers of future revenue growth for Rave Restaurant (RAVE) over the next 2-3 years:

1. Pizza Inn Unit Expansion: Rave Restaurant Group anticipates continued growth through the expansion of its Pizza Inn brand, both domestically and internationally. The company has a robust development pipeline, with 31 new domestic Pizza Inn stores under contract, and 12 of those projected to open in fiscal year 2026. International expansion is also a key focus, with new locations recently opened in Egypt and Saudi Arabia, and plans to have 7 locations in Egypt by 2027. Management expects Pizza Inn unit counts to increase modestly in future periods.
2. Pizza Inn Comparable Store Sales Growth: The Pizza Inn segment has demonstrated strong comparable store sales growth, including an 8.1% increase in domestic comparable store sales in the first quarter of fiscal 2026, and a 2.5% increase in the second quarter of fiscal 2026. This growth is partly attributed to successful value-driven promotions, such as the "I$8" buffet offering, which has led to significant sales and traffic lifts in participating locations. The company plans to expand these promotions to more Pizza Inn locations.
3. Remodeling of Existing Pizza Inn Restaurants: Investments in remodeling existing Pizza Inn stores are expected to contribute to revenue growth. The company has observed an increase in gross sales of approximately 8% from remodeled locations and had plans to remodel 8-10 stores by the end of fiscal year 2025.
4. Operational Improvements and Strategic Repositioning for Pie Five: While the Pie Five brand has experienced declines in comparable store sales and anticipates modest unit decreases in the near term, management is actively working to reposition the brand. Efforts are focused on enhancing performance through advertising, product innovation, and operational efficiencies. For example, enhancements to Pie Five's make-line have already resulted in significant throughput gains and record sales weeks in some locations.

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Share Repurchases

• Rave Restaurant Group repurchased common stock totaling $5.0 million in Fiscal Year 2024 (ended June 30, 2024).
• The company repurchased 500,000 shares of common stock for $1.2 million in the third quarter of Fiscal Year 2025 (ended March 30, 2025).
• In Fiscal Year 2023 (ended June 25, 2023), share repurchases amounted to $0.5 million.

Share Issuance

• Rave Restaurant Group had no sales of unregistered securities during fiscal years 2023, 2024, or 2025.

Capital Expenditures

• Rave Restaurant Group maintained a low level of capital expenditures, aligning with its asset-light franchising model.
• The company reported capital expenditures of $0.1 million in fiscal years 2022, 2023, and 2024.
• In the second quarter of Fiscal Year 2026 (ended December 28, 2025), capital expenditures were $9 thousand.