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Financing

Pie Five’s parent continues to struggle

Rave Restaurant Group’s latest financial update paints a bleak picture for Pie Five and sister brand Pizza Inn.

Rave Restaurant Group, parent company of fast casual Pie Five and buffet chain Pizza Inn, continues to struggle amid the pandemic, according to its latest financial filing.

“The COVID-19 pandemic has resulted in dramatically reduced aggregate in-store retail sales at Buffet Units and Pie Five Units, modestly offset by increased aggregate carry-out and delivery sales,” the company said in its annual report, filed late Monday.

Rave said it has furloughed employees, reduced base salaries by 20% and reduced expenses during Q4, but that “future results of operations are likely to be materially adversely impacted.”

The company closed 16 poor-performing Pie Five units during fiscal 2020 as well as four Pizza Inn stores. The company has closed its two company-owned Pie Five locations.

Pie Five’s total sales decreased 37.4% year over year, with same-store sales falling 15.7% during the fiscal year.

Pizza Inn’s total sales fell 13.7%. The buffet chain’s same-store sales declined 8.8% year over year.

In July, Rave received a delisting notice from Nasdaq, warning that the company was no longer in compliance with the financial market’s standard minimum of $2.5 million in stockholder equity to continue being listed.

Pie Five, which had 73 units in 2018, saw same-store sales fall 21.4% for the quarter ended March 29.

Last fall, Dallas-based Rave brought on Brandon Solano as CEO to attempt to turn the company around.

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