Exhibit 99.1

November 7, 2024
RAVE Restaurant Group, Inc. Reports First Quarter 2025 Results
Dallas, Texas – RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the first quarter of fiscal 2025 ended Sept. 29, 2024.
First Quarter Highlights:

•
The company recorded net income of $0.5 million for the first quarter of fiscal 2025, a 36.3% increase from the same period of the prior year.
 

 		•
Income before taxes increased by $0.2 million to $0.7 million for the first quarter of fiscal 2025 compared to the same period of the prior year.
 

 		•
Total revenue was $3.1 million for the first quarter of fiscal 2025, the same as it was in the same period of the prior year.
 

 		•
Adjusted EBITDA increased by $0.1 million to $0.7 million for the first quarter of fiscal 2025 compared to the same period of 2024.
 

 		•
On a fully diluted basis, net income increased by 33% to $0.04 per share for the first quarter of fiscal 2025 compared to $0.03 in the same period of the prior year.
 

 		•
Pizza Inn domestic comparable store retail sales decreased 2.1% in the first quarter of fiscal 2025 compared to the same period of the prior year.
 

 		•
Pie Five domestic comparable store retail sales decreased 8.7% in the first quarter of fiscal 2025 compared to the same period of the prior year.
 

 		•
Cash and cash equivalents were $1.4 million on Sept. 29, 2024.
 

 		•
Short-term investments were $7.1 million on Sept. 29, 2024.
 

 		•
Pizza Inn domestic unit count finished at 102.
 

 		•
Pizza Inn international unit count finished at 26.
 

 		•
Pie Five domestic unit count finished at 20.
 
“We have started the new fiscal year by hitting our 18th consecutive quarter of profitability and are poised for continued financial success,” said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc. “During the quarter, we signed another four-unit development agreement, bringing the total domestic sites contracted for development to 25. Additionally, the new online ordering platform rolled out to the Pizza Inn system at the end of last fiscal year has led to a double-digit increase in online sales.”
“While we are proud of our recent financial performance, we are even more excited about our upcoming innovation and growth initiatives,” continued Solano. “Not only will our new online sales platform, reimage program and new store openings fuel our growth, but we also expect innovation to be key in driving sales. Our recently introduced Sandworm Pizzert - with colorful gummy worms sitting atop green Bavarian cream and sprinkled with green sugar - saw a spike in our dessert sales, attracting the attention of guests of all ages. We plan to follow the Sandworm Pizzert with another major dessert innovation in early December, before introducing main course innovations early next calendar year.”
Solano concluded, “Food improvements aren’t the only innovation in the works. At Pie Five, we’ve designed the ordering flow to reduce the time from when a guest walks in the door until they receive their pizza. In initial testing, the process improvements have increased throughput during peak hours, boosting sales and enhancing the guest experience. We expect this to encourage more frequent visits to Pie Five, especially at lunch when time is often limited.”
Chief Financial Officer Jay Rooney added, “We are off to a solid start to fiscal year 2025. Pizza Inn comparable store sales improved incrementally throughout the quarter. General and Administrative and franchise support expenses continued to be lower than the previous year due to our reorganized corporate structure, delivering an increase in earnings per share. We continue to operate at a cash surplus and our balance sheet remains strong with $8.4 million in cash and liquid short-term investments, which is more than ample to fund the repurchase of shares proposed in our proxy under the reverse/forward split if approved by a shareholder vote in December and then enacted by our board of directors.”
Non-GAAP Financial Measures
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. 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 its financial statements prepared in accordance with generally accepted accounting principles.
The Company considers 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. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.
“EBITDA” represents earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying financial statements.
Note Regarding Forward Looking Statements
Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, the effectiveness of our cost cutting measures, the timing to complete as well as the continued returns on our reimaging initiatives, the strength of our development pipeline, as well as future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.

###
About RAVE Restaurant Group, Inc.
Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] has inspired restaurant innovation and countless customer smiles with its trailblazing pizza concepts. The Company franchises, licenses and supplies Pie Five and Pizza Inn restaurants operating domestically and internationally. The Pizza Inn experience is unlike your typical buffet. Since 1958, Pizza Inn’s house-made dough, house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce combined with friendly service solidified the brand to become America’s favorite hometown pizza place. These, in addition to its small-town vibe, are the hallmarks of Pizza Inn restaurants. In 2011, RAVE introduced Pie Five Pizza, pioneering a fast-casual pizza brand that transformed the classic pizzeria into a concept offering personalization, sophisticated ingredients and speed. Pie Five’s craft pizzas are baked fresh daily and feature house-made ingredients, creative recipes and craveable crust creations. For more information, visit www.raverg.com, and follow on Instagram @pizzainn and @piefivepizza.
Contact:
Investor Relations
RAVE Restaurant Group, Inc.
469-384-5000
RAVE RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share amounts)
(Unaudited)
   
Three Months Ended
  
   
September 29,
2024
    
September 24,
2023
  
REVENUES
  
$
3,050
    
$
3,087
  
                 
COSTS AND EXPENSES
                
General and administrative expenses
    
1,416
      
1,319
  
Franchise expenses
    
995
      
1,172
  
Provision (recovery) for credit losses
    
(17
)
    
25
  
Interest income
    
(82
)
    
(2
)
Depreciation and amortization expense
    
43
      
55
  
Total costs and expenses
    
2,355
      
2,569
  
INCOME BEFORE TAXES
    
695
      
518
  
Income tax expense
    
169
      
132
  
NET INCOME
  
$
526
    
$
386
  
                 
INCOME PER SHARE OF COMMON STOCK
                
Basic
  
$
0.04
    
$
0.03
  
Diluted
  
$
0.04
    
$
0.03
  

               
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
                
Basic
    
14,587
      
14,154
  
Diluted
    
14,799
      
14,762
  

RAVE RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
   
September 29,
2024
    
June 30,
2024
  
ASSETS
            
CURRENT ASSETS
            
Cash and cash equivalents
  
$
1,383
    
$
2,886
  
Short-term investments
    
7,050
      
4,945
  
Accounts receivable, less allowance for credit losses of $40 and $57, respectively
    
1,365
      
1,411
  
Notes receivable, current
    
67
      
68
  
Assets held for sale
    
27
      
33
  
Deferred contract charges, current
    
24
      
26
  
Prepaid expenses and other current assets
    
340
      
167
  
Total current assets
    
10,256
      
9,536
  
                 
LONG-TERM ASSETS
                
Property and equipment, net
    
159
      
182
  
Operating lease right-of-use assets, net
    
720
      
817
  
Intangible assets definite-lived, net
    
232
      
252
  
Notes receivable, net of current portion
    
70
      
79
  
Deferred tax asset, net
    
4,613
      
4,756
  
Deferred contract charges, net of current portion
    
235
      
197
  
Total assets
  
$
16,285
    
$
15,819
  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
CURRENT LIABILITIES
                
Accounts payable - trade
  
$
443
    
$
359
  
Accrued expenses
    
974
      
915
  
Operating lease liabilities, current
    
383
      
402
  
Deferred revenues, current
    
198
      
343
  
Total current liabilities
    
1,998
      
2,019
  
                 
LONG-TERM LIABILITIES
                
Operating lease liabilities, net of current portion
    
465
      
555
  
Deferred revenues, net of current portion
    
521
      
543
  
Total liabilities
    
2,984
      
3,117
  
                 
COMMITMENTS AND CONTINGENCIES (SEE NOTE C)
                
                 
SHAREHOLDERS’ EQUITY
                
Common stock, $0.01 par value; authorized 26,000,000 shares; issued 25,522,171 and 25,522,171 shares, respectively; outstanding 14,586,566 and 14,586,566 shares, respectively
    
255
      
255
  
Additional paid-in capital
    
37,636
      
37,563
  
Retained earnings
    
5,438
      
4,912
  
Treasury stock, at cost
                
Shares in treasury: 10,935,605 and 10,935,605 respectively
    
(30,028
)
    
(30,028
)
Total shareholders’ equity
    
13,301
      
12,702
  
                 
Total liabilities and shareholders’ equity
  
$
16,285
    
$
15,819
  

RAVE RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
   
Three months ended
  
   
September 29,
2024
    
September 24,
2023
  
CASH FLOWS FROM OPERATING ACTIVITIES:
            
Net income
  
$
526
    
$
386
  
Adjustments to reconcile net income to cash provided by operating activities:
                
Amortization of discount on short-term investment
    
(66
)
    
—
  
Stock-based compensation expense
    
73
      
79
  
Depreciation and amortization
    
23
      
34
  
Amortization of operating right-of-use assets
    
97
      
112
  
Amortization of definite-lived intangible assets
    
20
      
21
  
Non-cash lease expense
    
9
      
—
  
Provision (recovery) for credit losses
    
(17
)
    
25
  
Deferred income tax
    
143
      
108
  
Changes in operating assets and liabilities:
                
Accounts receivable
    
63
      
48
  
Notes receivable
    
—
      
(48
)
Deferred contract charges
    
(36
)
    
20
  
Prepaid expenses and other current assets
    
(173
)
    
(184
)
Accounts payable - trade
    
84
      
81
  
Accrued expenses
    
59
      
281
  
Operating lease liabilities
    
(118
)
    
(127
)
Deferred revenues
    
(167
)
    
(208
)
Cash provided by operating activities
    
520
      
628
  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Purchases of short-term investments
    
(5,039
)
    
—
  
Maturities of short-term investments
    
3,000
      
—
  
Payments received on notes receivable
    
10
      
15
  
Proceeds from sale of assets
    
6
      
—
  
Purchase of definite-lived intangible assets
    
—
      
(5
)
Purchase of property and equipment
    
—
      
(22
)
Cash used in investing activities
    
(2,023
)
    
(12
)
                 
Net (decrease)/increase in cash and cash equivalents
    
(1,503
)
    
616
  
Cash and cash equivalents, beginning of period
    
2,886
      
5,328
  
Cash and cash equivalents, end of period
  
$
1,383
    
$
5,944
  
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
                
                 
CASH PAID FOR:
                
Income taxes (net of refunds)
  
$
50
    
$
5
  

RAVE RESTAURANT GROUP, INC.
ADJUSTED EBITDA
(In thousands)
(Unaudited)
   
Three Months Ended
  
   
September 29, 2024
    
September 24, 2023
  
Net income
  
$
526
    
$
386
  
Interest income
    
(82
)
    
(2
)
Income taxes
    
169
      
132
  
Depreciation and amortization
    
43
      
55
  
EBITDA
  
$
656
    
$
571
  
Stock-based compensation expense
    
73
      
79
  
Franchisee default and closed store revenue
    
(9
)
    
(64
)
Adjusted EBITDA
  
$
720
    
$
586