The Q4 comp deceleration at both Pizza Inn and Pie Five signals weakening franchisee performance, which may pressure future royalty and supply revenue. The CEO's harassment complaint against the Board introduces governance risk and potential management distraction. Monitor the investigation outcome and FY2027 unit growth execution.
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Executive Summary
RAVE Restaurant Group reported fiscal Q4 2026 net income of $0.8M, a 6.2% YoY decline, on revenue of $3.4M (+8.8% YoY). Full-year FY2026 revenue grew 7.2% to $12.9M and net income increased 6.5% to $2.9M, but the Q4 quarter showed weakening trends: Pizza Inn comps turned negative (-2.8%) and Pie Five comps worsened (-17.3%). The filing also discloses a formal workplace harassment complaint by the CEO against the Board, which is under investigation.
Key Facts
- Q4 FY2026 net income $0.8M, down 6.2% YoY from $0.722M
- Q4 revenue $3.4M, up 8.8% YoY from $3.1M
- Q4 diluted EPS $0.06, flat YoY
- Full-year FY2026 revenue $12.9M, up 7.2% YoY from $12.0M
- Full-year net income $2.9M, up 6.5% YoY from $2.7M
- Full-year diluted EPS $0.20, up from $0.19 YoY
- Pizza Inn domestic Q4 comps -2.8% (vs +6.3% in prior-year Q4)
- Pie Five domestic Q4 comps -17.3% (vs -7.2% in prior-year Q4)
- Cash and short-term investments $13.6M at year-end, up $3.7M YoY
- CEO filed formal workplace harassment complaint against Board on Aug 31, 2026; investigation underway
- Pizza Inn signed a 10-buffet development agreement; first 5 expected to open in FY2027
Financial Impact
Q4 net income declined 6.2% YoY despite 8.8% revenue growth; full-year net income grew 6.5% to $2.9M. No guidance provided.
Risk Factors
- Pizza Inn domestic comps turned negative (-2.8%) after positive trends in prior quarters
- Pie Five comps worsened to -17.3%, indicating continued brand struggles
- CEO workplace harassment complaint against Board could lead to management disruption or litigation costs
- No formal FY2027 guidance provided, creating uncertainty on growth trajectory
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001140361-26-037515 |
| Document: ef20082655_8k.htm | 0001140361-26-037515 |
| Document: 0001140361-26-037515-index-headers.html | 0001140361-26-037515 |
| Document: 0001140361-26-037515-index.html | 0001140361-26-037515 |
| Document: 0001140361-26-037515.txt | 0001140361-26-037515 |
| 8-K Data (Synthetic) | 0001140361-26-037515 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | DEFA14A | $2.20 | awaiting T+20 | — | $2.22 (+0.91%) |
Oct 23, 2026 4d ago | DEF 14A | $2.20 | awaiting T+20 | — | $2.22 (+0.91%) |
Sep 24, 2026 4w ago | 8-K | $2.29 $2.20 | ▼ −3.93% | ▼ −3.51% | $2.22 (−3.06%) |
Sep 24, 2026 4w ago | Press Release | $2.29 $2.20 | ▼ −3.93% | ▼ −3.51% | $2.22 (−3.06%) |
May 7, 2026 24w ago | 8-K | $2.91 $2.81 | ▼ −3.44% | ▼ −6.57% | $2.22 (−23.71%) |
May 7, 2026 24w ago | Press Release | $2.91 $2.81 | ▼ −3.44% | ▼ −6.57% | $2.22 (−23.71%) |
US Market Status
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