RAVE Restaurant (RAVE) 8-K Pizza Inn, Inc. Reports Results for Second Quarter Fiscal Year 2009

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:
Nancy Ellefson
VP of Finance
Pizza Inn, Inc.
469-384-5000
nellefson@pihq.com

PIZZA INN, INC. REPORTS RESULTS FOR
SECOND QUARTER FISCAL YEAR 2009

New buffet prototype delivers strong results. Company sets up incentives for
future development.

The Colony, Texas — February 10, 2009 — PIZZA INN, INC. (NASDAQ:PZZI)today reported net income of $136,000, or $0.02 per share, for the second quarter ended December 28, 2008, versus net income of $853,000, or $0.08 per share, for the second quarter of the prior fiscal year. Highlights for the quarter ended December 28, 2008, included:

• Comparable domestic buffet restaurant sales decreased 3.3% for the quarter compared to the same period of the prior fiscal year.

• Total domestic restaurant sales decreased 5.8% for the quarter compared to the same period of the prior fiscal year.

• Seven new franchise restaurants and one new domestic Company-owned restaurant opened during the quarter.

• The new company-owned buffet restaurant located in Denton, TX reported sales for the quarter of $412,000, representing only 11 weeks of operation since opening on October, 15, 2008.

• The Company recorded a $263,000 litigation settlement during the quarter, compared to a $284,000 litigation recovery in the same period of the prior fiscal year. Additionally, the Company recorded $74,000 of income tax expense for the quarter compared to no income tax expense for the same period of the prior fiscal year. In the absence of these items, net income per share would have been $0.05 for the second quarter of fiscal 2009 compared to $0.06 for the same period in the prior year.

Charlie Morrison, President and CEO, commented, “If you adjust for one-time, non-operating expenses, our underlying business performance remains stable. Our new prototype buffet-style restaurant in Denton, TX has been a big hit with customers and existing franchisees. Sales during the first 11 weeks of operation averaged more than $35,000 per week. Last month we announced our new

FOR IMMEDIATE RELEASE

Contact:
Nancy Ellefson
VP of Finance
Pizza Inn, Inc.
469-384-5000
nellefson@pihq.com

franchise incentive program offering 0% royalties for the first year of operation for new buffet restaurants as a means to stimulate demand for this new prototype in otherwise challenging financial times. We expect banks to look favorably on this incentive as a way to loosen tight lending standards so that many others can realize their dream of owning their own Pizza Inn franchise. Since opening our Denton store, two additional franchise locations, leveraging the look and feel of the new prototype, have successfully opened. We are also in the market looking for real estate for additional Company-owned locations.”

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, 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 Pizza Inn’s control. 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 Pizza Inn’s objectives and plans will be achieved.

Pizza Inn, Inc. (www.pizzainn.com) is headquartered in The Colony, Texas, along with its distribution division, Norco Restaurant Services Company. Pizza Inn franchises approximately 320 restaurants and owns two restaurants with annual and domestic and international chain-wide sales of approximately $135 million.

PIZZA INN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Six Months Ended
	Dec. 28,			Dec. 23,			Dec. 28,			Dec. 23,
	2008			2007			2008			2007
REVENUES:
Food and supply sales	$	9,645		$	11,174		$	19,779		$	21,953
Franchise revenue		1,044			1,346			2,108			2,462
Restaurant sales		589			175			779			358
		11,278			12,695			22,666			24,773
COSTS AND EXPENSES:
Cost of sales		9,376			10,530			19,031			20,602
Franchise expenses		470			706			949			1,326
General and administrative expenses		856			704			1,543			1,327
Severance		—			79			37			379
Provision for bad debts		30			35			45			58
Loss on sale of assets		—			7			—			7
(Recovery) provision for litigation costs		263			(284	)		263			(284	)
Interest expense		16			17			28			29
		11,011			11,794			21,896			23,444
INCOME FROM CONTINUINGOPERATIONS BEFORE TAXES		267			901			770			1,329
Income taxes		74			—			235			—
INCOME FROM CONTINUING OPERATIONS		193			901			535			1,329
Loss from discontinued operations, net of taxes		(57	)		(48	)		(106	)		(131	)
NET INCOME	$	136		$	853		$	429		$	1,198
EARNINGS PER SHARE OF COMMON STOCK — BASIC:
Income from continuing operations	$	0.02		$	0.09		$	0.06		$	0.13
Loss from discontinued operations		—			(0.01	)		(0.01	)		(0.01	)
Net income	$	0.02		$	0.08		$	0.05		$	0.12
EARNINGS PER SHARE OF COMMON STOCK — DILUTED:
Income from continuing operations	$	0.02		$	0.09		$	0.06		$	0.13
Loss from discontinued operations		—			(0.01	)		(0.01	)		(0.01	)
Net income	$	0.02		$	0.08		$	0.05		$	0.12
Weighted average common shares outstanding — basic		8,713			10,061			8,827			10,114
Weighted average common shares outstanding — diluted		8,713			10,087			8,832			10,142

PIZZA INN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

	Dec. 28,			June 29,
	2008 (Unaudited)			2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	150			1,157
Accounts receivable, less allowance for bad debts of $172 and $128, respectively		3,110			2,773
Notes receivable, current portion		6			6
Income tax receivable		5			272
Inventories		1,315			1,396
Property held for sale		311			301
Deferred income tax assets, net		555			555
Prepaid expenses and other assets		250			235
Total current assets		5,702			6,695
LONG-TERM ASSETS
Property, plant and equipment, net		1,361			635
Notes receivable		3			7
Deferred income tax assets		237			237
Re-acquired development territory, net		—			46
Deposits and other assets		155			215
	$	7,458		$	7,835
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable — trade	$	1,590			2,380
Outstanding checks in excess of cash in bank		302			—
Accrued expenses		1,121			1,316
Total current liabilities		3,013			3,696
LONG-TERM LIABILITIES
Deferred gain on sale of property		172			184
Deferred revenues		267			283
Other long-term liabilities		2			18
Debt		992			—
Total liabilities		4,446			4,181
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 15,130,319 and 15,130,319 shares, respectively; outstanding 8,615,759 and 9,104,361 shares, respectively		151			151
Additional paid-in capital		8,645			8,543
Retained earnings		18,053			17,624
Treasury stock at cost
Shares in treasury: 6,514,560 and 6,025,958, respectively		(23,837	)		(22,664	)
Total shareholders’ equity		3,012			3,654
	$	7,458		$	7,835

PIZZA INN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Six Months Ended
	Dec. 28,			Dec. 23,
	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	429		$	1,198
Adjustments to reconcile net income to cash (used) provided by operating activities:
Depreciation and amortization		143			171
Severance expense		—			379
Stock compensation expense		102			2
Provision for (recovery of) litigation costs		263			(284	)
Loss on sale of assets		—			7
Provision for bad debts		45			58
Changes in operating assets and liabilities:
Notes and accounts receivable		(111	)		(1,039	)
Inventories		81			167
Deferred revenue		28			(17	)
Accounts payable — trade		(790	)		(64	)
Accrued expenses		(486	)		(363	)
Prepaid expenses and other		—			(51	)
Cash (used) provided by operating activities		(296	)		164
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets		—			92
Capital expenditures		(832	)		(69	)
Cash (used) provided by investing activities		(832	)		23
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in line of credit, net		992			—
Outstanding checks in excess of cash in bank		302			—
Repurchase of common stock		(1,173	)		(886	)
Cash provided by (used) for financing activities		121			(886	)
Net decrease in cash and cash equivalents		(1,007	)		(699	)
Cash and cash equivalents, beginning of period		1,157			1,879
Cash and cash equivalents, end of period	$	150		$	1,180

PIZZA INN, INC.
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
(In thousands)
(Unaudited)

	Six Months Ended
	Dec. 28,		Dec. 23,
	2008		2007
CASH PAYMENTS FOR:
Interest	$	25	$	29
Income taxes		196		—