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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 24, 2019	May 03, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	RAVE RESTAURANT GROUP, INC.
Entity Central Index Key	0000718332
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		15,071,311
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 24, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 24, 2019	Mar. 25, 2018	Mar. 24, 2019	Mar. 25, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
REVENUES	$ 3,070	$ 2,665	$ 9,256	$ 12,294
COSTS AND EXPENSES:
Cost of sales	382	299	715	3,441
General and administrative expenses	1,569	1,698	4,623	5,809
Franchise expenses	888	613	2,841	1,957
Pre-opening expenses	0	0	0	114
Loss/(gain) on sale of assets	104	31	(250)	(134)
Impairment of long-lived assets and other lease charges	219	70	389	751
Bad debt	16	264	211	477
Interest expense	26	26	77	157
Depreciation and amortization expense	120	133	385	733
Total costs and expenses	3,324	3,134	8,991	13,305
INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES	(254)	(469)	265	(1,011)
Income tax expense/(benefit)	9	6	188	(8)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	(263)	(475)	77	(1,003)
Loss from discontinued operations, net of taxes	0	(17)	0	(422)
NET INCOME / (LOSS)	$ (263)	$ (492)	$ 77	$ (1,425)
INCOME / (LOSS) PER SHARE OF COMMON STOCK - BASIC:
Income / (loss) from continuing operations (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.08)
Loss from discontinued operations (in dollars per share)	0	0	0	(0.03)
Net income / (loss) (in dollars per share)	(0.02)	(0.03)	0.01	(0.11)
INCOME / (LOSS) PER SHARE OF COMMON STOCK - DILUTED:
Income / (loss) from continuing operations (in dollars per share)	(0.02)	(0.03)	0.01	(0.08)
Loss from discontinued operations (in dollars per share)	0	0	0	(0.03)
Net income / (loss) (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.11)
Weighted average common shares outstanding - basic (in shares)	15,071	14,940	15,069	13,456
Weighted average common and potential dilutive common shares outstanding (in shares)	15,071	14,940	15,902	13,456

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 24, 2019	Jun. 24, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 1,932	$ 1,386
Accounts receivable, less allowance for bad debts of $148 and $158, respectively	1,514	1,518
Other receivable	0	300
Notes receivable, less allowance of bad debt of $186 and $0, respectively	610	712
Inventories	16	6
Income tax receivable	0	5
Property held for sale	271	539
Deferred contract charges	35	0
Prepaid expenses and other	485	273
Total current assets	4,863	4,739
LONG-TERM ASSETS
Property, plant and equipment, net	1,219	1,510
Intangible assets definite-lived, net	207	212
Long-term notes receivable	1,025	803
Deferred tax asset, net	3,328	3,479
Long-term deferred contract charges	208	0
Deposits and other	232	243
Total assets	11,082	10,986
CURRENT LIABILITIES
Accounts payable - trade	402	421
Accounts payable - lease termination impairments	566	353
Accrued expenses	995	1,109
Deferred rent	37	32
Deferred revenues	238	65
Total current liabilities	2,238	1,980
LONG-TERM LIABILITIES
Convertible notes	1,581	1,562
Deferred rent, net of current portion	406	433
Deferred revenues, net of current portion	1,604	670
Other long-term liabilities	57	42
Total liabilities	5,886	4,687
COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,190,515 and 22,166,674 shares, respectively; outstanding 15,071,311 and 15,047,470 shares, respectively	222	222
Additional paid-in capital	33,648	33,206
Accumulated deficit	(4,038)	(2,493)
Treasury stock at cost Shares in treasury: 7,119,204	(24,636)	(24,636)
Total shareholders' equity	5,196	6,299
Total liabilities and shareholders' equity	$ 11,082	$ 10,986

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 24, 2019	Jun. 24, 2018
CURRENT ASSETS
Accounts receivable, allowance for bad debts	$ 148	$ 158
Notes receivable, allowance for bad debts	$ 186	$ 0
SHAREHOLDERS' EQUITY
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	26,000,000	26,000,000
Common stock, shares issued (in shares)	22,190,515	22,166,674
Common stock, shares outstanding (in shares)	15,071,311	15,047,470
Treasury stock at cost (in shares)	7,119,204	7,119,204

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
ASC 606 cumulative adjustment \| ASC 606 [Member]	$ 0	$ 0	$ (1,622)	$ 0	$ (1,622)
Beginning balance at Jun. 24, 2018	$ 222	33,206	(2,493)	$ (24,636)	$ 6,299
Beginning balance (in shares) at Jun. 24, 2018	15,047,000			(7,119,000)	15,047,470
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	$ 0	410	0	$ 0	$ 410
Issuance of common stock	$ 0	36	0	$ 0	36
Issuance of common stock (in shares)	24,000			0
Equity issue costs - ATM Offering	$ 0	(4)	0	$ 0	(4)
Net income	0	0	77	0	77
Ending balance at Mar. 24, 2019	$ 222	$ 33,648	$ (4,038)	$ (24,636)	$ 5,196
Ending balance (in shares) at Mar. 24, 2019	15,071,000			(7,119,000)	15,071,311

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 24, 2019	Mar. 25, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)	$ 77	$ (1,425)
Adjustments to reconcile net income/(loss) to cash provided by (used in) operating activities:
Impairment of fixed assets and other assets	389	751
Stock compensation expense	410	29
Depreciation and amortization	353	704
Amortization of intangible assets definite-lived	32	29
Amortization of debt issue costs	19	29
(Gain)/loss on the sale of assets	(250)	(134)
Provision for bad debt (accounts receivable)	25	477
Provision for bad debt (notes receivable)	186	0
Changes in operating assets and liabilities:
Accounts receivable	202	1,127
Inventories	(10)	66
Prepaid expenses, deposits and other, net	(201)	(188)
Deferred revenue	(758)	(734)
Accounts payable - trade	(19)	(2,856)
Accounts payable - lease termination impairments	(64)	(1,384)
Deferred tax assets	151	0
Accrued expenses, deferred rent and other	(121)	(920)
Cash provided by (used in) operating activities	421	(4,429)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets	169	1,706
Purchase of intangible assets definite-lived	0	(9)
Capital expenditures	(76)	(884)
Cash provided by investing activities	93	813
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock	36	5,144
Expenses from sale of stock	(4)	0
Net change in other debt	0	(1,000)
Cash provided by financing activities	32	4,144
Net increase in cash and cash equivalents	546	528
Cash and cash equivalents, beginning of period	1,386	451
Cash and cash equivalents, end of period	1,932	979
CASH PAID FOR:
Interest	71	170
Income taxes	145	48
Non-cash activities:
Capital expenditures included in accounts payable	$ 0	$ 81

Summary of Significant Accounting Policies

9 Months Ended

Mar. 24, 2019

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(1)	Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Fiscal Quarters

The three and nine month periods ended March 24, 2019 and March 25, 2018 each contained 13 weeks and 39 weeks, respectively.

Use of Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically, and actual results could differ materially from estimates.

Revenue Recognition

Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

As further described below, revenue recognition in fiscal 2019 follows ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” and ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” Prior year revenue recognition follows ASU Topic 605, “Revenue Recognition.”

The following describes principal activities, separated by major product or service, from which the Company generates its revenues:

Restaurant Sales

Revenue from restaurant sales is recognized when food and beverage products are sold in Company-owned restaurants. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities.

Franchise Revenues

Franchise revenues consist of 1) franchise royalties, 2) supplier and distributor incentive revenues, 3) franchise license fees, 4) area development exclusivity fees and foreign master license fees, 5) advertising funds, and 6) supplier convention funds.

Franchise royalties, which are based on a percentage of franchise restaurant sales, are recognized as sales occur.

Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer.

Franchise license fees are typically billed upon execution of the franchise agreement and amortized over the term of the franchise agreement which can range from five to 20 years. Fees received for renewal periods are amortized over the life of the renewal period.

Area development exclusivity fees and foreign master license fees are typically billed upon execution of the area development and foreign master license agreements. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Area development exclusivity fees that include rights to subfranchise are amortized as revenue over the term of the contract.

For periods prior to adoption of Topic 606, revenue was recognized when we performed our obligations related to such fees, primarily the store opening date for initial franchise fees and area development fees, or the date the renewal option was effective for renewal fees.

Advertising fund contributions for Pie Five units represent franchise contributions collected where we have control over the activities of the fund. Contributions are based on a percentage of net retail sales. The adoption of Topic 606 revises the determination of whether these arrangements are considered principal versus agent. For Pie Five, we have determined that we are the principal in these arrangements, and advertising fund contributions and expenditures are, therefore, reported on a gross basis in the Condensed Consolidated Statements of Income. In general, we expect such advertising fund contributions and expenditures to be largely offsetting and, therefore, do not expect a significant impact on our reported income before income taxes. Our obligation related to these funds is to develop and conduct advertising activities. Pie Five marketing fund contributions are billed and collected weekly.

Supplier contributions to convention funds are deferred until the obligations of the agreement are met and the event takes place.

Accounting Standards Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP, including industry-specific requirements, and provides companies with a single framework for recognizing revenue from contracts with customers. In March and April 2016, the FASB issued Topic 606. This update and subsequently issued amendments require companies to recognize revenue at amounts that reflect the consideration to which the companies expect to be entitled in exchange for those goods or services at the time of transfer. Topic 606 requires that we assess contracts to determine each separate and distinct performance obligation. If a contract has multiple performance obligations, we allocate the transaction price using our best estimate of the standalone selling price to each distinct good or service in the contract.

The Company adopted Topic 606 as of June 25, 2018. See Note 2 for additional information.

Stock-Based Compensation

The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow.

Restricted stock units (“RSU’s”) represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. Compensation cost for RSU’s is measured as an amount equal to the fair value of the RSU’s on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level.

Discontinuation of Norco Distribution Division

During the fiscal quarter ended December 24, 2017, the Company discontinued its Norco distribution division and revised its arrangements with third party suppliers and distributors of food, equipment and supplies. As a result, sale of food, equipment and supplies is no longer recognized as revenue and the cost of such items is no longer included in cost of sales. The Company now recognizes incentive revenues received from third party suppliers and distributors as revenue.

Adoption of ASU 2014-09, "Revenue from Contracts with Customers"

9 Months Ended

Mar. 24, 2019

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" [Abstract]

Adoption of ASU 2014-09, "Revenue from Contracts with Customers"

(2)	Adoption of ASU 2014-09, “Revenue from Contracts with Customers”

The Company adopted ASU 2014-09 and Topic 606 using the modified retrospective transition method effective June 25, 2018. Results for reporting periods beginning on or after June 25, 2018 are presented in accordance with Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605, “Revenue Recognition.”

A cumulative effect adjustment of $1.6 million was recorded as a reduction to retained earnings as of June 25, 2018 to reflect the impact of adopting Topic 606. The reduction of retained earnings to reflect the cumulative impact of adopting Topic 606 was comprised of $1.3 million related to domestic franchise and renewal fees, $0.2 million related to domestic area development fees and $0.3 million related to international development and franchise master license fees, partially offset by $0.2 million in deferral of contract-related expenses.

The impact of applying Topic 606 for the three months ended March 24, 2019, was an increase in revenues of $0.3 million and an increase in pre-tax income of $0.2 million. The impact of applying Topic 606 for the nine months ended March 24, 2019, was an increase in revenues of $1.1 million and an increase in pre-tax income of $0.4 million.

The adoption of Topic 606 did not impact the recognition and reporting of our two largest sources of revenue: franchise royalties and supplier and distributor incentives. The items impacted by the adoption include the timing of franchise license and area development revenue recognition and the presentation of contributions to advertising and convention funds by franchisees and suppliers, respectively.

The following chart presents the specific line items impacted by the cumulative adjustment to opening retained earnings:

(In thousands, except share amounts)	As Reported June 24, 2018			Total Adjustment			Adjusted Balance Sheet June 25, 2018

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,386		$	-		$	1,386
Accounts receivable, less allowance for bad debts of $158		1,518			-			1,518
Other receivable		300			-			300
Notes receivable		712			-			712
Inventories		6			-			6
Income tax receivable		5			-			5
Property held for sale		539			-			539
Deferred contract charges		-			10			10
Prepaid expenses and other		273			-			273
Total current assets		4,739			10			4,749

LONG-TERM ASSETS
Property, plant and equipment, net		1,510			-			1,510
Intangible assets definite-lived, net		212			-			212
Long-term notes receivable		803			-			803
Deferred tax asset, net		3,479			-			3,479
Long term deferred contract charges		-			182			182
Deposits and other		243			-			243
Total assets	$	10,986		$	192		$	11,178

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable - trade	$	421		$	-		$	421
Accounts payable - lease termination impairments		353			-			353
Accrued expenses		1,109			(4	)		1,105
Deferred rent		32			-			32
Deferred revenues		65			243			308
Total current liabilities		1,980			239			2,219

LONG-TERM LIABILITIES
Convertible notes		1,562			-			1,562
Deferred rent, net of current portion		433			-			433
Deferred revenues, net of current portion		670			1,575			2,245
Other long-term liabilities		42			-			42
Total liabilities		4,687			1,814			6,501

COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)

SHAREHOLDERS’ EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares outstanding 15,047,470 shares		222			-			222
Additional paid-in capital		33,206			-			33,206
Accumulated deficit		(2,493	)		(1,622	)		(4,115	)
Treasury stock at cost
Shares in treasury: 7,119,204		(24,636	)		-			(24,636	)
Total shareholders’ equity		6,299			(1,622	)		4,677

Total liabilities and shareholders’ equity	$	10,986		$	192		$	11,178

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

The following charts present the specific line items impacted by the application of Topic 606 in the first three quarters of fiscal 2019.

(In thousands, except share amounts)	As Reported March 24, 2019 (Unaudited)			Total Adjustment			Balance Sheet Without Adoption of Topic 606
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	1,932		$	-		$	1,932
Accounts receivable, less allowance for bad debts of $148		1,514			-			1,514
Other receivable		-			-			-
Notes receivable		610			-			610
Inventories		16			-			16
Income tax receivable		-			-			-
Property held for sale		271			-			271
Deferred contract charges		35			(35	)		-
Prepaid expenses and other		485			-			485
Total current assets		4,863			(35	)		4,828

LONG-TERM ASSETS
Property, plant and equipment, net		1,219			-			1,219
Intangible assets definite-lived, net		207			-			207
Long-term notes receivable		1,025			-			1,025
Deferred tax asset, net		3,328			-			3,328
Long term deferred contract charges		208			(208	)		-
Deposits and other		232			-			232
Total assets	$	11,082		$	(243	)	$	10,839

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable - trade	$	402		$	-		$	402
Accounts payable - lease termination impairments		566			-			566
Accrued expenses		995			4			999
Deferred rent		37			-			37
Deferred revenues		238			(238	)		-
Total current liabilities		2,238			(234	)		2,004

LONG-TERM LIABILITIES
Convertible notes		1,581			-			1,581
Deferred rent, net of current portion		406			-			406
Deferred revenues, net of current portion		1,604			(1,269	)		335
Other long-term liabilities		57			-			57
Total liabilities		5,886			(1,503	)		4,383

COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)

SHAREHOLDERS’ EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,190,515 shares outstanding 15,071,311 shares		222			-			222
Additional paid-in capital		33,648			-			33,648
Accumulated deficit		(4,038	)		1,260			(2,778	)
Treasury stock at cost
Shares in treasury: 7,119,204		(24,636	)		-			(24,636	)
Total shareholders’ equity		5,196			1,260			6,456

Total liabilities and shareholders’ equity	$	11,082		$	(243	)	$	10,839

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

	As Reported Nine Months Ended March 24, 2019			Total Adjustments			Income Statement Without Adoption of Topic 606


REVENUES:	$	9,256		$	(1,119	)	$	8,137

COSTS AND EXPENSES:
Cost of sales		715			-			715
General and administrative expenses		4,623			-			4,623
Franchise expenses		2,841			(757	)		2,084
Pre-opening expenses		-			-			-
Gain on sale of assets		(250	)		-			(250	)
Impairment of long-lived assets and other lease charges		389			-			389
Bad debt		211			-			211
Interest expense		77			-			77
Depreciation and amortization expense		385			-			385
Total costs and expenses		8,991			(757	)		8,234

INCOME FROM CONTINUING OPERATIONS BEFORE TAXES		265			(362	)		(97	)
Income tax expense		188			-			188
INCOME FROM CONTINUING OPERATIONS		77			(362	)		(285	)

Loss from discontinued operations, net of taxes		-			-			-
NET INCOME	$	77		$	(362	)	$	(285	)

INCOME PER SHARE OF COMMON STOCK - BASIC:
Income from continuing operations	$	0.01		$	(0.03	)	$	(0.02	)
Loss from discontinued operations		-			-			-
Net income	$	0.01		$	(0.03	)	$	(0.02	)

INCOME PER SHARE OF COMMON STOCK - DILUTED:

Income from continuing operations	$	0.01		$	(0.03	)	$	(0.02	)
Loss from discontinued operations		-			-			-
Net income	$	0.01		$	(0.03	)	$	(0.02	)

Weighted average common shares outstanding - basic		15,069			15,069			15,069

Weighted average common and potential dilutive common shares outstanding		15,902			15,902			15,902

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Commitments and Contingencies

9 Months Ended

Mar. 24, 2019

Commitments and Contingencies [Abstract]

Commitments and Contingencies

(3)	Commitments and Contingencies

On May 23, 2007, the Company’s board of directors approved a stock purchase plan (the “2007 Stock Purchase Plan”) authorizing the purchase on our behalf of up to 1,016,000 shares of our common stock in the open market or in privately negotiated transactions. On June 2, 2008, the Company’s board of directors amended the 2007 Stock Purchase Plan to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 2,016,000 shares. On April 22, 2009 the Company’s board of directors amended the 2007 Stock Purchase Plan again to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 3,016,000 shares. The 2007 Stock Purchase Plan does not have an expiration date. There were no stock purchases in the fiscal quarter ended March 24, 2019.

The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s annual results of operations or financial condition if decided in a manner that is unfavorable to the Company.

Stock-Based Compensation

9 Months Ended

Mar. 24, 2019

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(4)	Stock-Based Compensation

Stock Options:

For the fiscal quarter ended March 24, 2019, the Company did not recognize any stock-based compensation expense related to stock options compared to $10 thousand in the same period of the prior year. As of March 24, 2019, there was no unamortized stock-based compensation expense related to stock options.

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Nine Months Ended
	March 24, 2019			March 25, 2018
	Shares			Shares
Outstanding at beginning of year		478,056			478,056

Granted		-			-
Exercised		-			-
Forfeited/Canceled/Expired		(190,000	)		-

Outstanding at end of period		288,056			478,056

Exercisable at end of Period		288,056			438,056

Restricted Stock Units:

For the fiscal quarter ended March 24, 2019, the Company recognized $0.1 million in stock-based compensation expense related to RSU’s compared to no expense in the same period of the prior year. For the nine month period ended March 24, 2019, the Company recognized $0.4 million in stock-based compensation expense related to RSU’s compared to no expense in the same period of the prior year. As of March 24, 2019, unamortized stock-based compensation expense related to RSU’s was $0.4 million.

A summary of the status of restricted stock units as of March 24, 2019 and changes during the fiscal nine month period then ended is presented below:

Number of Restricted Stock Units

Unvested at June 24, 2018	908,293
Granted	-
Vested	-
Forfeited	(164,520	)
Unvested at March 24, 2019	743,773

Earnings per Share (EPS)

9 Months Ended

Mar. 24, 2019

Earnings per Share (EPS) [Abstract]

Earnings per Share (EPS)

(5)	Earnings per Share (EPS)

The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).

	Three Months Ended						Nine Months Ended
	March 24, 2019			March 25, 2018			March 24, 2019		March 25, 2018
	March 24, 2019			March 25, 2018			March 24, 2019		March 25, 2018
Income/(loss) from continuing operations	$	(263	)	$	(475	)	$	77	$	(1,003	)
Loss from discontinued operations		-			(17	)		-		(422	)
Net income/(loss) available to common stockholders	$	(263	)	$	(492	)	$	77	$	(1,425	)
Interest saved on convertible notes of $1,574 at 4%	$	16		$	-		$	47	$	-
Adjusted net income/(loss)	$	(247	)	$	(492	)	$	124	$	(1,425	)

BASIC:
Weighted average common shares		15,071			14,940			15,069		13,456

Income/(loss) from continuing operations per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.08	)
Loss from discontinued operations per common share		-			-			-		(0.03	)
Net income/(loss) per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.11	)

DILUTED:
Weighted average common shares		15,071			14,940			15,069		13,456
Convertible notes		-			-			833		-
Dilutive stock options		-			-			-		-
Weighted average common shares outstanding		15,071			14,940			15,902		13,456

Income/(loss) from continuing operations per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.08	)
Loss from discontinued operations per common share		-			-			-		(0.03	)
Net income/(loss) per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.11	)

For the three and nine month periods ended March 24, 2019, options to purchase 288,056 shares of common stock at exercise prices ranging from $1.55 to $13.11 were excluded from the computation of diluted EPS.

Closed Restaurants and Discontinued Operations

9 Months Ended

Mar. 24, 2019

Closed Restaurants and Discontinued Operations [Abstract]

Closed Restaurants and Discontinued Operations

(6)	Closed restaurants and discontinued operations

In April, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which modifies the definition of discontinued operations to include only disposals of an entity that represent strategic shifts that have or will have a major effect on an entity’s operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. The standard was effective prospectively for annual and interim periods beginning after December 15, 2014, with early adoption permitted.

The authoritative guidance on “Accounting for the Impairment or Disposal of Long-Lived Assets,” requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount. This guidance also requires that the operations of closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented.

The authoritative guidance on “Accounting for Costs Associated with Exit or Disposal Activities,” requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This authoritative guidance also establishes that fair value is the objective for initial measurement of the liability.

Discontinued operations include losses attributable to the discontinued Norco distribution and supply division, leased buildings associated with Company-owned restaurants closed in prior years, and Company-owned restaurants closed in the reported period.

Income Taxes

9 Months Ended

Mar. 24, 2019

Income Taxes [Abstract]

Income Taxes

(7)	Income Taxes

For the three months ended March 24, 2019, the Company recorded an income tax expense of $9 thousand calculated at a rate consistent with the 21% statutory U.S. federal rate. For the three months ended March 24, 2019, income tax expense consisted of $2 thousand in state taxes, $1 thousand in accrued foreign taxes and $6 thousand in deferred taxes. For the nine months ended March 24, 2019, the Company recorded an income tax expense of $188 thousand calculated at a rate consistent with the 21% statutory U.S. federal rate. For the nine months ended March 24, 2019, income tax expense consisted of $22 thousand in state taxes and $166 thousand in deferred taxes. The Company anticipates utilizing net operating loss carryforwards to offset any federal income taxes.

The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. Future sources of taxable income are also considered in determining the amount of the recorded valuation allowance. Based on the review of this evidence, the Company determined it was appropriate to reverse a portion of the valuation allowance against the deferred tax assets as of June 24, 2018.

As of March 24, 2019, the Company had $5.7 million of gross deferred tax assets partially offset by a valuation allowance of $2.4 million. The Company determined it was not necessary to further adjust the valuation allowance. However, the Company will continue to review the need for an adjustment to the valuation allowance.

Segment Reporting

9 Months Ended

Mar. 24, 2019

Segment Reporting [Abstract]

Segment Reporting

(8)	Segment Reporting

The Company has three reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising, and (3) Company-Owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments. Other revenue consists of non-recurring items.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for these segments is derived from franchise royalties, franchise fees, sale of area development and foreign master license rights and incentive payments from third party suppliers and distributors. Assets for these segments include equipment, furniture and fixtures.

The Company-Owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

Corporate administration and other assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following table are net sales and operating revenues, depreciation and amortization expense and income from continuing operations before taxes for the Company’s reportable segments as of the three and nine months ended March 24, 2019 and March 25, 2018 (in thousands):

	Three Months Ended						Nine Months Ended
	March 24, 2019			March 25, 2018			March 24, 2019			March 25, 2018
Net sales and operating revenues:
Pizza Inn Franchising	$	1,645		$	1,601		$	5,338		$	5,093
Pie Five Franchising		1,102			774			3,348			3,169
Company-Owned Restaurants (1)		314			290			533			4,032
Interest income		9			-			37			-
Consolidated revenues	$	3,070		$	2,665		$	9,256		$	12,294

Depreciation and amortization:
Pizza Inn Franchising	$	-		$	-		$	-		$	-
Pie Five Franchising		-			-			-			-
Company-Owned Restaurants (1)		31			45			93			418
Combined		31			45			93			418
Corporate administration and other (2)		89			88			292			315
Depreciation and amortization	$	120		$	133		$	385		$	733

Income/(Loss) from continuing operations before taxes:
Pizza Inn Franchising	$	1,308		$	1,288		$	4,081		$	4,165
Pie Five Franchising		551			474			1,764			2,140
Company-Owned Restaurants (1)		(253	)		(167	)		(677	)		(1,509	)
Combined		1,606			1,595			5,168			4,796
Corporate administration and other		(1,860	)		(2,064	)		(4,903	)		(5,807	)
Income/(loss) from continuing operations before taxes	$	(254	)	$	(469	)	$	265		$	(1,011	)

Geographic information (revenues):
United States	$	3,040		$	2,593		$	9,049		$	11,929
Foreign countries		30			72			207			365
Consolidated total	$	3,070		$	2,665		$	9,256		$	12,294

Notes:

(1)

Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations.

(2)

Portions of corporate administration and other have been allocated to segments.

Convertible Notes

9 Months Ended

Mar. 24, 2019

Convertible Notes [Abstract]

Convertible Notes

(9)	Convertible Notes

On March 3, 2017, the Company completed a registered shareholder rights offering of its 4% Convertible Senior Notes due 2022 (“Notes”). Shareholders exercised subscription rights to purchase all 30,000 of the Notes at the par value of $100 per Note, resulting in gross offering proceeds to the Company of $3.0 million. The Notes bear interest at the rate of 4% per annum on the principal or par value of $100 per Note, payable annually in arrears on February 15 of each year, commencing February 15, 2018. Interest is payable in cash or, at the Company’s discretion, in shares of Company common stock.

The Notes mature on February 15, 2022, at which time all principal and unpaid interest will be payable in cash or, at the Company’s discretion, in shares of Company common stock. The Notes are secured by a pledge of all outstanding equity securities of the Company’s two primary direct operating subsidiaries. Noteholders may convert their Notes to common stock at a conversion rate of $2.00 per share, unless the Company sooner elects to redeem the notes. Accrued interest will be paid through the effective date of the conversion in cash or, at the Company’s sole discretion, in shares of Company common stock.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 24, 2019
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Fiscal Quarters	Fiscal Quarters The three and nine month periods ended March 24, 2019 and March 25, 2018 each contained 13 weeks and 39 weeks, respectively.
Use of Management Estimates	Use of Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically, and actual results could differ materially from estimates.
Revenue Recognition	Revenue Recognition Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. As further described below, revenue recognition in fiscal 2019 follows ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” and ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” Prior year revenue recognition follows ASU Topic 605, “Revenue Recognition.” The following describes principal activities, separated by major product or service, from which the Company generates its revenues: Restaurant Sales Revenue from restaurant sales is recognized when food and beverage products are sold in Company-owned restaurants. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise Revenues Franchise revenues consist of 1) franchise royalties, 2) supplier and distributor incentive revenues, 3) franchise license fees, 4) area development exclusivity fees and foreign master license fees, 5) advertising funds, and 6) supplier convention funds. Franchise royalties, which are based on a percentage of franchise restaurant sales, are recognized as sales occur. Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer. Franchise license fees are typically billed upon execution of the franchise agreement and amortized over the term of the franchise agreement which can range from five to 20 years. Fees received for renewal periods are amortized over the life of the renewal period. Area development exclusivity fees and foreign master license fees are typically billed upon execution of the area development and foreign master license agreements. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Area development exclusivity fees that include rights to subfranchise are amortized as revenue over the term of the contract. For periods prior to adoption of Topic 606, revenue was recognized when we performed our obligations related to such fees, primarily the store opening date for initial franchise fees and area development fees, or the date the renewal option was effective for renewal fees. Advertising fund contributions for Pie Five units represent franchise contributions collected where we have control over the activities of the fund. Contributions are based on a percentage of net retail sales. The adoption of Topic 606 revises the determination of whether these arrangements are considered principal versus agent. For Pie Five, we have determined that we are the principal in these arrangements, and advertising fund contributions and expenditures are, therefore, reported on a gross basis in the Condensed Consolidated Statements of Income. In general, we expect such advertising fund contributions and expenditures to be largely offsetting and, therefore, do not expect a significant impact on our reported income before income taxes. Our obligation related to these funds is to develop and conduct advertising activities. Pie Five marketing fund contributions are billed and collected weekly. Supplier contributions to convention funds are deferred until the obligations of the agreement are met and the event takes place.
Accounting Standards Adopted	Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP, including industry-specific requirements, and provides companies with a single framework for recognizing revenue from contracts with customers. In March and April 2016, the FASB issued Topic 606. This update and subsequently issued amendments require companies to recognize revenue at amounts that reflect the consideration to which the companies expect to be entitled in exchange for those goods or services at the time of transfer. Topic 606 requires that we assess contracts to determine each separate and distinct performance obligation. If a contract has multiple performance obligations, we allocate the transaction price using our best estimate of the standalone selling price to each distinct good or service in the contract. The Company adopted Topic 606 as of June 25, 2018. See Note 2 for additional information.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow. Restricted stock units (“RSU’s”) represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. Compensation cost for RSU’s is measured as an amount equal to the fair value of the RSU’s on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level.
Discontinuation of Norco Distribution Division	Discontinuation of Norco Distribution Division During the fiscal quarter ended December 24, 2017, the Company discontinued its Norco distribution division and revised its arrangements with third party suppliers and distributors of food, equipment and supplies. As a result, sale of food, equipment and supplies is no longer recognized as revenue and the cost of such items is no longer included in cost of sales. The Company now recognizes incentive revenues received from third party suppliers and distributors as revenue.

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" (Tables)

9 Months Ended

Mar. 24, 2019

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" [Abstract]

Line Items Impacted by Cumulative Adjustment from Adoption of New Accounting Standard

The following chart presents the specific line items impacted by the cumulative adjustment to opening retained earnings:

(In thousands, except share amounts)	As Reported June 24, 2018			Total Adjustment			Adjusted Balance Sheet June 25, 2018

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,386		$	-		$	1,386
Accounts receivable, less allowance for bad debts of $158		1,518			-			1,518
Other receivable		300			-			300
Notes receivable		712			-			712
Inventories		6			-			6
Income tax receivable		5			-			5
Property held for sale		539			-			539
Deferred contract charges		-			10			10
Prepaid expenses and other		273			-			273
Total current assets		4,739			10			4,749

LONG-TERM ASSETS
Property, plant and equipment, net		1,510			-			1,510
Intangible assets definite-lived, net		212			-			212
Long-term notes receivable		803			-			803
Deferred tax asset, net		3,479			-			3,479
Long term deferred contract charges		-			182			182
Deposits and other		243			-			243
Total assets	$	10,986		$	192		$	11,178

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable - trade	$	421		$	-		$	421
Accounts payable - lease termination impairments		353			-			353
Accrued expenses		1,109			(4	)		1,105
Deferred rent		32			-			32
Deferred revenues		65			243			308
Total current liabilities		1,980			239			2,219

LONG-TERM LIABILITIES
Convertible notes		1,562			-			1,562
Deferred rent, net of current portion		433			-			433
Deferred revenues, net of current portion		670			1,575			2,245
Other long-term liabilities		42			-			42
Total liabilities		4,687			1,814			6,501

COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)

SHAREHOLDERS’ EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares outstanding 15,047,470 shares		222			-			222
Additional paid-in capital		33,206			-			33,206
Accumulated deficit		(2,493	)		(1,622	)		(4,115	)
Treasury stock at cost
Shares in treasury: 7,119,204		(24,636	)		-			(24,636	)
Total shareholders’ equity		6,299			(1,622	)		4,677

Total liabilities and shareholders’ equity	$	10,986		$	192		$	11,178

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

The following charts present the specific line items impacted by the application of Topic 606 in the first three quarters of fiscal 2019.

(In thousands, except share amounts)	As Reported March 24, 2019 (Unaudited)			Total Adjustment			Balance Sheet Without Adoption of Topic 606
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	1,932		$	-		$	1,932
Accounts receivable, less allowance for bad debts of $148		1,514			-			1,514
Other receivable		-			-			-
Notes receivable		610			-			610
Inventories		16			-			16
Income tax receivable		-			-			-
Property held for sale		271			-			271
Deferred contract charges		35			(35	)		-
Prepaid expenses and other		485			-			485
Total current assets		4,863			(35	)		4,828

LONG-TERM ASSETS
Property, plant and equipment, net		1,219			-			1,219
Intangible assets definite-lived, net		207			-			207
Long-term notes receivable		1,025			-			1,025
Deferred tax asset, net		3,328			-			3,328
Long term deferred contract charges		208			(208	)		-
Deposits and other		232			-			232
Total assets	$	11,082		$	(243	)	$	10,839

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable - trade	$	402		$	-		$	402
Accounts payable - lease termination impairments		566			-			566
Accrued expenses		995			4			999
Deferred rent		37			-			37
Deferred revenues		238			(238	)		-
Total current liabilities		2,238			(234	)		2,004

LONG-TERM LIABILITIES
Convertible notes		1,581			-			1,581
Deferred rent, net of current portion		406			-			406
Deferred revenues, net of current portion		1,604			(1,269	)		335
Other long-term liabilities		57			-			57
Total liabilities		5,886			(1,503	)		4,383

COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)

SHAREHOLDERS’ EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,190,515 shares outstanding 15,071,311 shares		222			-			222
Additional paid-in capital		33,648			-			33,648
Accumulated deficit		(4,038	)		1,260			(2,778	)
Treasury stock at cost
Shares in treasury: 7,119,204		(24,636	)		-			(24,636	)
Total shareholders’ equity		5,196			1,260			6,456

Total liabilities and shareholders’ equity	$	11,082		$	(243	)	$	10,839

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

	As Reported Nine Months Ended March 24, 2019			Total Adjustments			Income Statement Without Adoption of Topic 606


REVENUES:	$	9,256		$	(1,119	)	$	8,137

COSTS AND EXPENSES:
Cost of sales		715			-			715
General and administrative expenses		4,623			-			4,623
Franchise expenses		2,841			(757	)		2,084
Pre-opening expenses		-			-			-
Gain on sale of assets		(250	)		-			(250	)
Impairment of long-lived assets and other lease charges		389			-			389
Bad debt		211			-			211
Interest expense		77			-			77
Depreciation and amortization expense		385			-			385
Total costs and expenses		8,991			(757	)		8,234

INCOME FROM CONTINUING OPERATIONS BEFORE TAXES		265			(362	)		(97	)
Income tax expense		188			-			188
INCOME FROM CONTINUING OPERATIONS		77			(362	)		(285	)

Loss from discontinued operations, net of taxes		-			-			-
NET INCOME	$	77		$	(362	)	$	(285	)

INCOME PER SHARE OF COMMON STOCK - BASIC:
Income from continuing operations	$	0.01		$	(0.03	)	$	(0.02	)
Loss from discontinued operations		-			-			-
Net income	$	0.01		$	(0.03	)	$	(0.02	)

INCOME PER SHARE OF COMMON STOCK - DILUTED:

Income from continuing operations	$	0.01		$	(0.03	)	$	(0.02	)
Loss from discontinued operations		-			-			-
Net income	$	0.01		$	(0.03	)	$	(0.02	)

Weighted average common shares outstanding - basic		15,069			15,069			15,069

Weighted average common and potential dilutive common shares outstanding		15,902			15,902			15,902

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Stock-Based Compensation (Tables)

9 Months Ended

Mar. 24, 2019

Stock-Based Compensation [Abstract]

Outstanding Stock Options

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Nine Months Ended
	March 24, 2019			March 25, 2018
	Shares			Shares
Outstanding at beginning of year		478,056			478,056

Granted		-			-
Exercised		-			-
Forfeited/Canceled/Expired		(190,000	)		-

Outstanding at end of period		288,056			478,056

Exercisable at end of Period		288,056			438,056

Restricted Stock Units

A summary of the status of restricted stock units as of March 24, 2019 and changes during the fiscal nine month period then ended is presented below:

Number of Restricted Stock Units

Unvested at June 24, 2018	908,293
Granted	-
Vested	-
Forfeited	(164,520	)
Unvested at March 24, 2019	743,773

Earnings per Share (EPS) (Tables)

9 Months Ended

Mar. 24, 2019

Earnings per Share (EPS) [Abstract]

Earnings per Share Basic and Diluted

	Three Months Ended						Nine Months Ended
	March 24, 2019			March 25, 2018			March 24, 2019		March 25, 2018
	March 24, 2019			March 25, 2018			March 24, 2019		March 25, 2018
Income/(loss) from continuing operations	$	(263	)	$	(475	)	$	77	$	(1,003	)
Loss from discontinued operations		-			(17	)		-		(422	)
Net income/(loss) available to common stockholders	$	(263	)	$	(492	)	$	77	$	(1,425	)
Interest saved on convertible notes of $1,574 at 4%	$	16		$	-		$	47	$	-
Adjusted net income/(loss)	$	(247	)	$	(492	)	$	124	$	(1,425	)

BASIC:
Weighted average common shares		15,071			14,940			15,069		13,456

Income/(loss) from continuing operations per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.08	)
Loss from discontinued operations per common share		-			-			-		(0.03	)
Net income/(loss) per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.11	)

DILUTED:
Weighted average common shares		15,071			14,940			15,069		13,456
Convertible notes		-			-			833		-
Dilutive stock options		-			-			-		-
Weighted average common shares outstanding		15,071			14,940			15,902		13,456

Income/(loss) from continuing operations per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.08	)
Loss from discontinued operations per common share		-			-			-		(0.03	)
Net income/(loss) per common share	$	(0.02	)	$	(0.03	)	$	0.01	$	(0.11	)

Segment Reporting (Tables)

9 Months Ended

Mar. 24, 2019

Segment Reporting [Abstract]

Segment Reporting Information

	Three Months Ended						Nine Months Ended
	March 24, 2019			March 25, 2018			March 24, 2019			March 25, 2018
Net sales and operating revenues:
Pizza Inn Franchising	$	1,645		$	1,601		$	5,338		$	5,093
Pie Five Franchising		1,102			774			3,348			3,169
Company-Owned Restaurants (1)		314			290			533			4,032
Interest income		9			-			37			-
Consolidated revenues	$	3,070		$	2,665		$	9,256		$	12,294

Depreciation and amortization:
Pizza Inn Franchising	$	-		$	-		$	-		$	-
Pie Five Franchising		-			-			-			-
Company-Owned Restaurants (1)		31			45			93			418
Combined		31			45			93			418
Corporate administration and other (2)		89			88			292			315
Depreciation and amortization	$	120		$	133		$	385		$	733

Income/(Loss) from continuing operations before taxes:
Pizza Inn Franchising	$	1,308		$	1,288		$	4,081		$	4,165
Pie Five Franchising		551			474			1,764			2,140
Company-Owned Restaurants (1)		(253	)		(167	)		(677	)		(1,509	)
Combined		1,606			1,595			5,168			4,796
Corporate administration and other		(1,860	)		(2,064	)		(4,903	)		(5,807	)
Income/(loss) from continuing operations before taxes	$	(254	)	$	(469	)	$	265		$	(1,011	)

Geographic information (revenues):
United States	$	3,040		$	2,593		$	9,049		$	11,929
Foreign countries		30			72			207			365
Consolidated total	$	3,070		$	2,665		$	9,256		$	12,294

Notes:

(1)

Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations.

(2)

Portions of corporate administration and other have been allocated to segments.

Summary of Significant Accounting Policies (Details)	9 Months Ended
Summary of Significant Accounting Policies (Details)	Mar. 24, 2019
Minimum [Member]
Franchise Revenues [Abstract]
Amortization term of franchise license fees	5 years
Maximum [Member]
Franchise Revenues [Abstract]
Amortization term of franchise license fees	20 years

Adoption of ASU 2014-09, "Revenue from Contracts with Customers", Cumulative Adjustment to Retained Earnings (Details) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 24, 2019 USD ($) $ / shares shares	Mar. 24, 2019 USD ($) Source $ / shares shares	Jun. 24, 2018 USD ($) $ / shares shares
CURRENT ASSETS [Abstract]
Cash and cash equivalents	$ 1,932	$ 1,932	$ 1,386
Accounts receivable, less allowance for bad debts of $158 and $179, respectively	1,514	1,514	1,518
Other receivable	0	0	300
Notes receivable	610	610	712
Inventories	16	16	6
Income tax receivable	0	0	5
Property held for sale	271	271	539
Deferred contract charges	35	35	0
Prepaid expenses and other	485	485	273
Total current assets	4,863	4,863	4,739
LONG-TERM ASSETS [Abstract]
Property, plant and equipment, net	1,219	1,219	1,510
Intangible assets definite-lived, net	207	207	212
Long-term notes receivable	1,025	1,025	803
Deferred tax asset, net	3,328	3,328	3,479
Long term deferred contract charges	208	208	0
Deposits and other	232	232	243
Total assets	11,082	11,082	10,986
CURRENT LIABILITIES [Abstract]
Accounts payable - trade	402	402	421
Accounts payable - lease termination impairments	566	566	353
Accrued expenses	995	995	1,109
Deferred rent	37	37	32
Deferred revenues	238	238	65
Total current liabilities	2,238	2,238	1,980
LONG-TERM LIABILITIES [Abstract]
Convertible notes	1,581	1,581	1,562
Deferred rent, net of current portion	406	406	433
Deferred revenues, net of current portion	1,604	1,604	670
Other long-term liabilities	57	57	42
Total liabilities	5,886	5,886	4,687
COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)
SHAREHOLDERS' EQUITY [Abstract]
Common stock	222	222	222
Additional paid-in capital	33,648	33,648	33,206
Accumulated deficit	(4,038)	(4,038)	(2,493)
Treasury stock at cost Shares in treasury: 7,119,204	(24,636)	(24,636)	(24,636)
Total shareholders' equity	5,196	5,196	6,299
Total liabilities and shareholders' equity	11,082	11,082	10,986
Accounts receivable, allowance for bad debts	$ 148	$ 148	$ 158
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares) \| shares	26,000,000	26,000,000	26,000,000
Common stock, shares issued (in shares) \| shares	22,190,515	22,190,515	22,166,674
Common stock, shares outstanding (in shares) \| shares	15,071,311	15,071,311	15,047,470
Treasury stock at cost (in shares) \| shares	7,119,204	7,119,204	7,119,204
ASU 2014-09 [Member]
Adoption of Cumulative Effect on Change in Accounting Principle [Abstract]
Cumulative adjustment recorded as reduction to retained earnings			$ (1,622)
Increase in revenue	$ 300	$ 1,100
Increase in pre-tax income	200	$ 400
Number of largest sources of revenue \| Source		2
ASU 2014-09 [Member] \| Domestic Franchise and Renewal Fees [Member]
Adoption of Cumulative Effect on Change in Accounting Principle [Abstract]
Cumulative adjustment recorded as reduction to retained earnings			(1,300)
ASU 2014-09 [Member] \| Domestic Area Development Fees [Member]
Adoption of Cumulative Effect on Change in Accounting Principle [Abstract]
Cumulative adjustment recorded as reduction to retained earnings			(200)
ASU 2014-09 [Member] \| International Development and Franchise Master License Fees [Member]
Adoption of Cumulative Effect on Change in Accounting Principle [Abstract]
Cumulative adjustment recorded as reduction to retained earnings			(300)
Deferral of contract-related expenses			200
ASU 2014-09 [Member] \| Adjustment [Member]
CURRENT ASSETS [Abstract]
Cash and cash equivalents	0	$ 0	0
Accounts receivable, less allowance for bad debts of $158 and $179, respectively	0	0	0
Other receivable	0	0	0
Notes receivable	0	0	0
Inventories	0	0	0
Income tax receivable	0	0	0
Property held for sale	0	0	0
Deferred contract charges	(35)	(35)	10
Prepaid expenses and other	0	0	0
Total current assets	(35)	(35)	10
LONG-TERM ASSETS [Abstract]
Property, plant and equipment, net	0	0	0
Intangible assets definite-lived, net	0	0	0
Long-term notes receivable	0	0	0
Deferred tax asset, net	0	0	0
Long term deferred contract charges	(208)	(208)	182
Deposits and other	0	0	0
Total assets	(243)	(243)	192
CURRENT LIABILITIES [Abstract]
Accounts payable - trade	0	0	0
Accounts payable - lease termination impairments	0	0	0
Accrued expenses	4	4	(4)
Deferred rent	0	0	0
Deferred revenues	(238)	(238)	243
Total current liabilities	(234)	(234)	239
LONG-TERM LIABILITIES [Abstract]
Convertible notes	0	0	0
Deferred rent, net of current portion	0	0	0
Deferred revenues, net of current portion	(1,269)	(1,269)	1,575
Other long-term liabilities	0	0	0
Total liabilities	(1,503)	(1,503)	1,814
COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)
SHAREHOLDERS' EQUITY [Abstract]
Common stock	0	0	0
Additional paid-in capital	0	0	0
Accumulated deficit	1,260	1,260	(1,622)
Treasury stock at cost Shares in treasury: 7,119,204	0	0	0
Total shareholders' equity	1,260	1,260	(1,622)
Total liabilities and shareholders' equity	(243)	(243)	192
ASU 2014-09 [Member] \| Without Adjustment [Member]
CURRENT ASSETS [Abstract]
Cash and cash equivalents	1,932	1,932	1,386
Accounts receivable, less allowance for bad debts of $158 and $179, respectively	1,514	1,514	1,518
Other receivable	0	0	300
Notes receivable	610	610	712
Inventories	16	16	6
Income tax receivable	0	0	5
Property held for sale	271	271	539
Deferred contract charges	0	0	10
Prepaid expenses and other	485	485	273
Total current assets	4,828	4,828	4,749
LONG-TERM ASSETS [Abstract]
Property, plant and equipment, net	1,219	1,219	1,510
Intangible assets definite-lived, net	207	207	212
Long-term notes receivable	1,025	1,025	803
Deferred tax asset, net	3,328	3,328	3,479
Long term deferred contract charges	0	0	182
Deposits and other	232	232	243
Total assets	10,839	10,839	11,178
CURRENT LIABILITIES [Abstract]
Accounts payable - trade	402	402	421
Accounts payable - lease termination impairments	566	566	353
Accrued expenses	999	999	1,105
Deferred rent	37	37	32
Deferred revenues	0	0	308
Total current liabilities	2,004	2,004	2,219
LONG-TERM LIABILITIES [Abstract]
Convertible notes	1,581	1,581	1,562
Deferred rent, net of current portion	406	406	433
Deferred revenues, net of current portion	335	335	2,245
Other long-term liabilities	57	57	42
Total liabilities	4,383	4,383	6,501
COMMITMENTS AND CONTINGENCIES (SEE NOTE 3)
SHAREHOLDERS' EQUITY [Abstract]
Common stock	222	222	222
Additional paid-in capital	33,648	33,648	33,206
Accumulated deficit	(2,778)	(2,778)	(4,115)
Treasury stock at cost Shares in treasury: 7,119,204	(24,636)	(24,636)	(24,636)
Total shareholders' equity	6,456	6,456	4,677
Total liabilities and shareholders' equity	$ 10,839	$ 10,839	$ 11,178

Adoption of ASU 2014-09, "Revenue from Contracts with Customers", Statement of Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 24, 2019	Mar. 25, 2018	Mar. 24, 2019	Mar. 25, 2018
Income Statement [Abstract]
REVENUES	$ 3,070	$ 2,665	$ 9,256	$ 12,294
COSTS AND EXPENSES [Abstract]
Cost of sales	382	299	715	3,441
General and administrative expenses	1,569	1,698	4,623	5,809
Franchise expenses	888	613	2,841	1,957
Pre-opening expenses	0	0	0	114
Loss/(gain) on sale of assets	104	31	(250)	(134)
Impairment of long-lived assets and other lease charges	219	70	389	751
Bad debt	16	264	211	477
Interest expense	26	26	77	157
Depreciation and amortization expense	120	133	385	733
Total costs and expenses	3,324	3,134	8,991	13,305
INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES	(254)	(469)	265	(1,011)
Income tax expense	9	6	188	(8)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	(263)	(475)	77	(1,003)
Loss from discontinued operations, net of taxes	0	(17)	0	(422)
NET INCOME / (LOSS)	$ (263)	$ (492)	$ 77	$ (1,425)
INCOME PER SHARE OF COMMON STOCK - BASIC [Abstract]
Income from continuing operations (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.08)
Loss from discontinued operations (in dollars per share)	0	0	0	(0.03)
Net income / (loss) (in dollars per share)	(0.02)	(0.03)	0.01	(0.11)
INCOME PER SHARE OF COMMON STOCK - DILUTED [Abstract]
Income from continuing operations (in dollars per share)	(0.02)	(0.03)	0.01	(0.08)
Loss from discontinued operations (in dollars per share)	0	0	0	(0.03)
Net income / (loss) (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.11)
Weighted average common shares outstanding - basic (in shares)	15,071	14,940	15,069	13,456
Weighted average common and potential dilutive common shares outstanding (in shares)	15,071	14,940	15,902	13,456
Adjustment [Member] \| ASU 2014-09 [Member]
Income Statement [Abstract]
REVENUES			$ (1,119)
COSTS AND EXPENSES [Abstract]
Cost of sales			0
General and administrative expenses			0
Franchise expenses			(757)
Pre-opening expenses			0
Loss/(gain) on sale of assets			0
Impairment of long-lived assets and other lease charges			0
Bad debt			0
Interest expense			0
Depreciation and amortization expense			0
Total costs and expenses			(757)
INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES			(362)
Income tax expense			0
INCOME/(LOSS) FROM CONTINUING OPERATIONS			(362)
Loss from discontinued operations, net of taxes			0
NET INCOME / (LOSS)			$ (362)
INCOME PER SHARE OF COMMON STOCK - BASIC [Abstract]
Income from continuing operations (in dollars per share)			$ (0.03)
Loss from discontinued operations (in dollars per share)			0
Net income / (loss) (in dollars per share)			(0.03)
INCOME PER SHARE OF COMMON STOCK - DILUTED [Abstract]
Income from continuing operations (in dollars per share)			(0.03)
Loss from discontinued operations (in dollars per share)			0
Net income / (loss) (in dollars per share)			$ (0.03)
Weighted average common shares outstanding - basic (in shares)			15,069
Weighted average common and potential dilutive common shares outstanding (in shares)			15,902
Without Adjustment [Member] \| ASU 2014-09 [Member]
Income Statement [Abstract]
REVENUES			$ 8,137
COSTS AND EXPENSES [Abstract]
Cost of sales			715
General and administrative expenses			4,623
Franchise expenses			2,084
Pre-opening expenses			0
Loss/(gain) on sale of assets			(250)
Impairment of long-lived assets and other lease charges			389
Bad debt			211
Interest expense			77
Depreciation and amortization expense			385
Total costs and expenses			8,234
INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES			(97)
Income tax expense			188
INCOME/(LOSS) FROM CONTINUING OPERATIONS			(285)
Loss from discontinued operations, net of taxes			0
NET INCOME / (LOSS)			$ (285)
INCOME PER SHARE OF COMMON STOCK - BASIC [Abstract]
Income from continuing operations (in dollars per share)			$ (0.02)
Loss from discontinued operations (in dollars per share)			0
Net income / (loss) (in dollars per share)			(0.02)
INCOME PER SHARE OF COMMON STOCK - DILUTED [Abstract]
Income from continuing operations (in dollars per share)			(0.02)
Loss from discontinued operations (in dollars per share)			0
Net income / (loss) (in dollars per share)			$ (0.02)
Weighted average common shares outstanding - basic (in shares)			15,069
Weighted average common and potential dilutive common shares outstanding (in shares)			15,902

Commitments and Contingencies (Details) - shares			3 Months Ended
Commitments and Contingencies (Details) - shares	Apr. 22, 2009	Jun. 02, 2008	Mar. 24, 2019	May 23, 2007
Treasury Stock, Shares [Abstract]
Repurchase of shares common stock (in shares)			0
2007 Stock Purchase Plan [Member]
Treasury Stock, Shares [Abstract]
Number of common stock shares authorized to purchase (in shares)				1,016,000
Amended 2007 Stock Purchase Plan [Member]
Treasury Stock, Shares [Abstract]
Number of common stock shares authorized to purchase (in shares)	3,016,000	2,016,000
Repurchase of shares common stock (in shares)	1,000,000	1,000,000

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Mar. 24, 2019	Mar. 25, 2018	Mar. 24, 2019	Mar. 25, 2018
Summary of Restricted Stock Units [Roll Forward]
Stock-based compensation expense recognized			$ 410	$ 29
Stock Options [Member]
Summary of Shares of Common Stock Subject to Outstanding Stock Options [Roll Forward]
Outstanding at beginning of year (in shares)			478,056	478,056
Granted (in shares)			0	0
Exercised (in shares)			0	0
Forfeited/Canceled/Expired (in shares)			(190,000)	0
Outstanding at end of period (in shares)	288,056	478,056	288,056	478,056
Exercisable at end of Period (in shares)	288,056	438,056	288,056	438,056
Summary of Restricted Stock Units [Roll Forward]
Stock-based compensation expense recognized	$ 0	$ 10
Unamortized stock-based compensation expense	$ 0		$ 0
Restricted Stock Units [Member]
Summary of Restricted Stock Units [Roll Forward]
Unvested Beginning Balance (in shares)			908,293
Granted (in shares)			0
Vested (in shares)			0
Forfeited (in shares)			(164,520)
Unvested Ending Balance (in shares)	743,773		743,773
Stock-based compensation expense recognized	$ 100	$ 0	$ 400	$ 0
Unamortized stock-based compensation expense other than options	$ 400		$ 400

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 24, 2019	Mar. 25, 2018	Mar. 24, 2019	Mar. 25, 2018	Dec. 23, 2018	Jun. 24, 2018	Mar. 03, 2017
Earnings Per Share [Abstract]
Income/(loss) from continuing operations	$ (263)	$ (475)	$ 77	$ (1,003)
Loss from discontinued operations	0	(17)	0	(422)
Net income/(loss) available to common stockholders	(263)	(492)	77	(1,425)
Interest saved on convertible notes of $1,574 at 4%	16	0	47	0
Adjusted net income/(loss)	$ (247)	$ (492)	$ 124	$ (1,425)
BASIC [Abstract]
Weighted average common shares (in shares)	15,071,000	14,940,000	15,069,000	13,456,000
Income/(loss) from continuing operations per common share (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.08)
Loss from discontinued operations per common share (in dollars per share)	0	0	0	(0.03)
Net income / (loss) (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.11)
DILUTED [Abstract]
Weighted average common shares (in shares)	15,071,000	14,940,000	15,069,000	13,456,000
Convertible notes (in shares)	0	0	833,000	0
Dilutive stock options (in shares)	0	0	0	0
Weighted average common shares outstanding (in shares)	15,071,000	14,940,000	15,902,000	13,456,000
Income/(loss) from continuing operations per common share (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.08)
Loss from discontinued operations per common share (in dollars per share)	0	0	0	(0.03)
Net income / (loss) (in dollars per share)	$ (0.02)	$ (0.03)	$ 0.01	$ (0.11)
Convertible notes	$ 1,581		$ 1,581			$ 1,562
Convertible Senior Notes [Member]
DILUTED [Abstract]
Convertible notes					$ 1,574
Interest on convertible notes	4.00%		4.00%				4.00%
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings per Share [Abstract]
Options to purchase shares of common stock excluded from computation of diluted EPS (in shares)	288,056		288,056
Stock Options [Member] \| Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings per Share [Abstract]
Options to purchase shares of common stock exercise price (in dollars per share)	$ 1.55		$ 1.55
Stock Options [Member] \| Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings per Share [Abstract]
Options to purchase shares of common stock exercise price (in dollars per share)	$ 13.11		$ 13.11

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 24, 2019	Mar. 25, 2018	Mar. 24, 2019	Mar. 25, 2018
Income Taxes [Abstract]
Income tax expense	$ 9	$ 6	$ 188	$ (8)
Federal statutory rate	21.00%		21.00%
State tax expense	$ 2		$ 22
Accrued foreign taxes	1
Deferred taxes	6		166
Gross deferred tax assets	5,700		5,700
Deferred tax assets, valuation allowance	$ 2,400		$ 2,400

Segment Reporting (Details)
$ in Thousands

3 Months Ended

9 Months Ended

Mar. 24, 2019

USD ($)

Mar. 25, 2018

USD ($)

Mar. 24, 2019

USD ($)

Segment

Mar. 25, 2018

USD ($)

Segment Reporting [Abstract]

Number of reportable segments | Segment

Segment Reporting Information, Profit (Loss) [Abstract]

Consolidated revenues

$ 3,070

$ 2,665

$ 9,256

$ 12,294

Interest income

Depreciation and amortization

120

133

385

733

Income/(Loss) from continuing operations before taxes

(254)

(469)

265

(1,011)

Operating Segments [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Depreciation and amortization

418

Income/(Loss) from continuing operations before taxes

1,606

1,595

5,168

4,796

Corporate Administration and Other [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Depreciation and amortization

^[1]

292

315

Income/(Loss) from continuing operations before taxes

(1,860)

(2,064)

(4,903)

(5,807)

Reportable Geographical Components [Member] | United States [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Consolidated revenues

3,040

2,593

9,049

11,929

Reportable Geographical Components [Member] | Foreign Countries [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Consolidated revenues

207

365

Pizza Inn Franchising [Member] | Operating Segments [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Consolidated revenues

1,645

1,601

5,338

5,093

Depreciation and amortization

Income/(Loss) from continuing operations before taxes

1,308

1,288

4,081

4,165

Pie Five Franchising [Member] | Operating Segments [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Consolidated revenues

1,102

774

3,348

3,169

Depreciation and amortization

Income/(Loss) from continuing operations before taxes

551

474

1,764

2,140

Company-Owned Restaurants [Member] | Operating Segments [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Consolidated revenues

^[2]

314

290

533

4,032

Depreciation and amortization

^[2]

418

Income/(Loss) from continuing operations before taxes

^[2]

$ (253)

$ (167)

$ (677)

$ (1,509)

[1]	Portions of corporate administration and other have been allocated to segments.
[2]	Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations.

Convertible Notes (Details) - 4% Convertible Senior Notes due 2022 [Member]		9 Months Ended
	Mar. 03, 2017 USD ($) Notes	Mar. 24, 2019 Subsidiary $ / shares
Convertible Notes [Abstract]
Shareholders exercised subscription rights \| Notes	30,000
Par value of shares exercised per note	$ 100
Proceeds from issuance of convertible notes	$ 3,000,000
Interest on convertible notes	4.00%	4.00%
Maturity date of notes		Feb. 15, 2022
Number of direct operating subsidiaries \| Subsidiary		2
Conversion rate of common stock (in dollars per share) \| $ / shares		$ 2.00