RAVE - Earnings call transcript Q1 2019 | RAVE Restaurant Group, Inc.

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Operator

Welcome to the RAVE Restaurant’s First Quarter 2019 Financial Results Conference Call. [Operator Instructions]. I’d now like to turn the conference over to Ms. Andrea Allen. Please go ahead.

Andrea Allen

you. Thank thank earnings the call. and fiscal Restaurant for quarter first you afternoon, RAVE joining Group’s Good safternoon. Everyone fiscal release this quarter have XXXX should access earnings that to was our first published www.raverg.com The in press be release found the Relations section. can Investor at

not of a future non-GAAP be operating discuss in performance. will note results believe Please that or to them. of be Before uncertainties can everyone We of therefore, future as and the cause results include GAAP the GAAP. forward-looking comparable over performance, turn that will These of statements in forward-looking risks should to like we Crane, discussion condition. remind for statements. information is and call, numerous the our Scott Chief useful to Executive subject that I’d accordance we could our from we a our expect. and today also in today’s to risks would These results discussions we considered our for in to put financial are such available that, reconciliation impact materially earnings part measures A our financial evaluating call of with refer could should on I isolation differ detailed filings which some begin, are to statements undue actual all discussion more like Officer. that reliance recent our release. what prepared With not not SEC substitute measures, certain you you Any guarantees

Scott Crane

financial again first operating I'm Good pleased Once to quarter Thanks, Andrea. our afternoon results. everyone. share

shape the revitalization is of evidenced that last in financial strategic shifts we plans you very years made to our are results our optimistic have Rave still at have take see. the beginning We all are taking two will changes and over of that exciting team brands, place

impacts domestic comparable sales from our has fiscal quarter are stated Pizza September for basis is period of Hurricane comparable confident first adverse Inn release XX growth the brand continued total the retail that the positive points. quarter by domestic sales. to Pie space Florence prior reinvigorate while and higher its we sales This in compared poised store retail the increased Pizza Inn, is and growth. traction for Pie X.X% I sales momentum of Five year franchise to the Despite in providing are in seventh As Inn Pizza 'XX for same of increased

along members Our to when like service five 'XX delivering communities intentionally years two inch in that same challenging building strategy optimistic store delivery online to exceed I'm products comparable to mission sales teams own quarter at a continued trend. our first family. decreased After we Pie by in brand Pie XX same Five is The our new of quality Five crust, and we a progress of continue quarters consecutive they year. ordering exceptional of and are of be the that like pizzas, same fiscal continues we period now in with last our of this are place our guests, positive improvement. it's choosing this shareable trend serve to on the cauliflower will expectations. X.X% seeing sales. compared very have and store

importantly new these in we trying guest as we open we is are exciting. what's test to more restaurants hope fact very much much, it's very, current as the have that reeducate mix that the in see we as the to menu not restaurants the them products the We in new as concept higher and so items to additional in future menu calzone system deliver such the

February so sharing coming this year be we the pizza item see in passport, flavor can through menu time our introduced Pie guests we Five early what will a also We will limited travel profiles new highlight. itinerary

consumers out third test goldilocks a of first month location a delivery. once a design these smaller We to party off We sales are open have We've reporting fast new year past of debuted using integrated online a premise app. our with off-premise to into using and expect talk efforts dining been well did to are over also are our segment maintaining more with is as to at it the to casual features carry be President to that innovative pizza Bafundo excitement future more phenomenal. of this Monday Bob prototype about and for an the and an Pie of consumers footprint potential development. increase ago Five's they business convenience going new empathizes We're that our XX% the doubling around I'll results that [indiscernible] also as turn least third consumers. experience than we lot a while the to we guests continue the ordering it and solutions elevated and our believe service

Bob Bafundo

Scott. franchise communities newly to the sales Momentum reinforcing first through through to our Inn as The their driving ripple franchisees products their are delivering by continue locations quarter. of and ordering commitments traffic. from continued remodeled is all for our space that buffet, creating and effect success day climb quality online Thanks, strengthen services to Pizza has Inn a are and recent exciting Pizza team our

to by Pizza up as further well. picking adoption franchisees of to analytics us data is addition our consumer new Inn POS our refine and speed platform In give meaningful development strategy. is starting

recently to month Our prototype southeast. we the home our newest location slated next market and new in in debuted have open another

also increased also traditional with Pie locations is interest renewed combined restaurant strong experiencing driving traffic remodeled a We buffet are in Inn industry This indicates sales. for Enthusiasm quarter. our outlook continued Pizza the data this and concept. have that concept

to we or that airports expect big quarter even cost footprint unit licensees pie now of and be three ability to very first to box minimal malls, operators brand have Feedback of key opened into and continue potential retailers. and the gives growth. locations. the multi-unit own During The optimistic Pizza expand or believe expansion required to brand additional a been the settings this Express operate we travel from pipeline opportunity will limited with has fuel start-up for the Inn convenience Pie new stores, we operators a We licensees. centers,

During Pie the allowed flat company company quarter first XX quarter one at of us fiscal third units off-locations the XXX the now units international remained number Andrea and carry catering. results further I'm in at to restaurants, to out new to finished driving delivery, finished XXXX and the franchisees Pizza items, in Chief with over our selling Accounting domestic owned detail. Officer, franchise Five Inn like menu and to new has XX. discuss We our focus to party turn Allen Administrative on sales call initiatives of financial going

Andrea Allen

Thank you, Bob.

the the reduction $X.X the in compared the closures of For defaulted quarter first fiscal for the company to revenues owned dollars franchise in fees. primarily driven same year's area development and transfers year, $X.X to and million were of units X.X revenue franchisees and period to prior million total development by driven from by fees including million in decreased XXXX revenues prior decreased

first loss XX a year. while company of after in was for not as adjusted adjustment the reported the period amounts or applying modified reduction topics the of increase All Pie retained a ASU, compared recognition. cumulative owned either in and of diluted are as franchised an the the XXXX XX, per historical revenue $XXX,XXX in as period in or with prior the topics one under XXX in reporting XXX to topic of ended income or adopting to topics $X.XX period accordance the topic of domestic increased $X.XX increase share As compared results one prior using $XXX,XXX of for restaurant adopted an quarter the to continued international licensed. XX, to diluted beginning quarter are quarter of A of million Net and XXXX $X.X reflect the with quarter effect retrospective $XXX,XXX XX, and to accordance the of June year. net units September other impact the June income XXX the June and XXXX-XX XX, first pretax recorded end share our XXXX end of are XXXX per same of the presented On method, for the transition XXX company earnings revenues XXX, accounting prior impact XXX was $XX,XXX. be Five of

by for and quarterly XXXX of the the period the revenue Additional be X.X XX-Q ended the increase of details adoption in SEC. with new driven first quarter XXXX September of can EBITDA same agreement million a million during prior the primarily the standard found offset fiscal was prior from for filed XXXX improvement million and year's XX, The area to Form the and fiscal our year owned development $X.X on as and cash Adjusted franchise in period the impact partially company's including fiscal income stores. and of $X.X and general by a quarter in $XXX,XXX year. defaulted increased the XX, savings increase million of cash September corporate, XXXX for was company first administrative XXXX, fees $X of equivalents revenue expenses development recognition

was quarter operating prior the from the in cash compared provided activities $X During year. $XXX,XXX million cash to first used

$X.X the in in million in million right's of XXXX shareholders' impact the to financing cash We investing cash the year. For sale as $X.X prior connection XXX. earnings equity $XXXXX had quarter of a compared a the end of result the $XXXX retained in September the shareholder of million quarter primarily XX, the from to prior quarter in of to compared the primarily result at in in end adoption reduction offering first The stock $XXX,XXX of the used due the $X.X activities to of of to we in net year that fiscal total from topics with was at closed XXXX. provided

specific performance our and we and SEC operating volume non-comp filing comp reminder includes information restaurant income payables brands specific statement explanations. details in brand financial deal a of a release, and and and this various earnings unit our disclosed As average [indiscernible] great in

back was earlier Crane we final the remarks for afternoon the before filed with XX-Q his SEC to Form Scott some now this take Q&A. turn Our I'll call over

Scott Crane

Thanks, believe and trends prior two trends year QX the of of close be the the we continue as pleased just last continue improving results Andrea. quarters. Appreciate future that. are with well last and the to and recent the in years quarter To in in

continues best demand I'm needle continue that With the quarters to of Rave for for brands the ahead turn As us. and to the I'll are questions. all to that over confident move build call we'll Operator our

Operator

question [Operator looks will Instructions]. from like Please go our ahead. be And tonight first it [indiscernible].

Unidentified Analyst

Great job.

deploying much the regarding and equities only figure of shareholder out explained assume to up question the topic the adjusted XX question I total as have then as that my I was answer to of its is will look a pretty the topic deficit the result the accumulated I do same about just topic correct? You EBITDA away with the have increased regulations that

Andrea Allen

$X that million in filings. correct. We further Yes adjusted broken had our is XX-Q a out

Unidentified Analyst

to I doing through it know at job, time the I it a much. which I work. time keep didn't just only Right, very on read first I got I and are don't you just phone bothered great to guys thank more to when have I saw go the so you great X:XX Really, nothing add say but mentioned have to up Eastern you will want to you it I I needed

Scott Crane

the Thank Appreciate you. comment.

Operator

not Instructions]. I'm time showing questions. more [Operator any this At

today's answer everyone and as that and disconnect. to to question with may at the would So time now session you as attending I this thank well I like for conference. conclude want

RAVE Restaurant (RAVE) 11 Nov 182019 Q1 Earnings call transcript