Struggling Rave Restaurant Group, parent company of Pie Five and Pizza Inn, received a delisting notice from Nasdaq Wednesday, following a lackluster third-quarter financial report on top of several years of sliding sales.
The warning notice states the company is no longer in compliance with the financial market’s standard minimum of $2.5 million in stockholder equity to continue being listed. Rave also did not meet Nasdaq’s requirements of having at least $35 million in listed securities or $500,000 of net income for either the most recent fiscal year or two of the last three most recent fiscal years.
The company has until August 22 to submit a compliance plan, according to the warning.
Fast-casual pizza concept Pie Five has seen 18 consecutive quarters of declining sales. It recently closed 10 more units, bringing its total count to 43 restaurants. It had 73 stores in 2018. Its same-store sales fell 21.4% for the quarter ended March 29.
Pizza Inn, Rave’s quick-service pizza chain, reported a 7.8% same-store sales drop for the quarter.
Rave reported revenues of $2.7 million for the third quarter and $8.4 million for fiscal 2020 to date, down 11.9% and 9.1%, respectively, compared to the same periods last year.