Exhibit 99.1

May 7, 2026
RAVE Restaurant Group, Inc. Reports Third Quarter 2026 Results
Dallas, Texas – RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the third quarter of fiscal 2026 ended March 29, 2026.
Third Quarter Highlights:

•
The Company recorded net income of $0.8 million for the third quarter of fiscal 2026, a 10.8% increase from the same period of the prior year.


•
Income before taxes increased by 11.1% to $1.1 million for the third quarter of fiscal 2026 compared to the same period of the prior year.


•
Total revenue increased by $0.3 million to $3.2 million for the third quarter of fiscal 2026 compared to the same period of the prior year, an 8.7% increase.


•
Adjusted EBITDA increased by $0.2 million to $1.1 million for the third quarter of fiscal 2026 compared to the same period of the prior year, a 16.4% increase.


•
On a fully diluted basis, net income per share increased by $0.01 to $0.06 for the third quarter of fiscal 2026 compared to $0.05 in the same period of the prior year.


•
Pizza Inn domestic comparable store retail sales increased 2.3% in the third quarter of fiscal 2026 compared to the same period of the prior year.


•
Pie Five domestic comparable store retail sales decreased 11.6% in the third quarter of fiscal 2026 compared to the same period of the prior year.


•
Cash and short-term investments totaled $12.0 million on March 29, 2026.


•
Pizza Inn domestic unit count finished the quarter at 97, including 82 buffet locations.


•
Pizza Inn international unit count finished the quarter at 18.


•
Pie Five domestic unit count finished the quarter at 14.
 
“I am proud of the efforts and results delivered by our franchisees and team members in driving both sales and profits in the third quarter” said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc.
“During a quarter that saw the overall restaurant industry, and pizza competitors specifically, struggle with a tough sales environment, Pizza Inn posted positive 2.3% same store sales growth compared to the prior year third quarter in the face of significant January weather headwinds that had an estimated negative 3.3% same store sales impact to the quarter,” continued Solano. “While other national pizza chains have announced they plan to close hundreds of locations, Pizza Inn has opened four new restaurants this fiscal year and has thirteen total restaurants currently under contract to open within the next three quarters including five restaurants currently under construction. Pizza Inn looks at other pizza brand restaurant closures as an opportunity to not only gain market share but also to bring America’s hometown buffet to more communities as more restaurant real estate becomes available with competitor closures.”
Solano added, “We continued to innovate our menu to drive customers into our franchise locations. Limited time offers such as the Spam Luau pizza and Peeps Pizzert at Pizza Inn and the Chick’le Ranch pizza at Pie Five gave our guests something new to try during the third quarter and our Pizza Inn buffet franchise partners reported the new offerings were quickly consumed when put on the buffet. While our top line continues to grow, we are very focused on the bottom line of our franchisee’s businesses as we know we are only as strong as our franchise system. We continue to monitor and partner with our franchisees on their financial health and made the decision to end our third party delivery relationship with Uber Eats after they announced a sharp increase in their fees in the third quarter. Protecting the profitability of our franchisees is not only our duty, but also paramount to growth.”
Chief Financial Officer Jay Rooney added, “We are pleased with the third quarter financial results. Pre-tax profits increased by over eleven percent from the same quarter in the prior year, driven by quality earnings from both new and same store sales outpacing the G&A increase over the prior year. The G&A increase is reflective of the investment Rave is making to grow the Pizza Inn brand with new buffet locations. During the quarter we added a second franchise salesperson and saw an increase in travel expenses related to approving and developing new restaurant sites. And early in the fourth quarter Rave added a Director of Construction to accelerate location count growth. Our present solid financial footing is affording us the opportunity to invest in future store growth.”
Non-GAAP Financial Measures
The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for its financial statements prepared in accordance with generally accepted accounting principles.
The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.
“EBITDA” represents earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying consolidated financial statements.
Note Regarding Forward Looking Statements
Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve current judgments about future events and performance, including statements regarding our optimism that current positive trends will continue, our ability to continue to successfully open new restaurant locations, our belief that we are well positioned for continued profitability as well as the continued returns on our reimaging initiatives, the strength of our development pipeline, as well as future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.
###
 
About RAVE Restaurant Group, Inc.
Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] has inspired restaurant innovation and countless customer smiles with its trailblazing pizza concepts. The Company franchises, licenses and supplies Pie Five and Pizza Inn restaurants operating domestically and internationally. The Pizza Inn experience is unlike your typical buffet. Since 1958, Pizza Inn’s house-made dough, house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce combined with friendly service solidified the brand to become America’s favorite hometown pizza place. These, in addition to its small-town vibe, are the hallmarks of Pizza Inn restaurants. In 2011, RAVE introduced Pie Five Pizza, pioneering a fast-casual pizza brand that transformed the classic pizzeria into a concept offering personalization, sophisticated ingredients and speed. Pie Five’s craft pizzas are baked fresh daily and feature house-made ingredients, creative recipes and craveable crust creations. For more information, visit www.raverg.com, and follow on Instagram @pizzainn and @piefivepizza.
Contact:
Investor Relations
RAVE Restaurant Group, Inc.
469-384-5000
 
RAVE RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share amounts)
(Unaudited)
   
Three Months Ended
    
Nine Months Ended
  
   
March 29,
2026
    
March 30,
2025
    
March 29,
2026
    
March 30,
2025
  
REVENUES
  
$
3,223
    
$
2,966
    
$
9,478
    
$
8,885
  
                                 
COSTS AND EXPENSES
                                
General and administrative expenses
    
1,468
      
1,313
      
4,365
      
4,047
  
Franchise expenses
    
747
      
768
      
2,516
      
2,592
  
Provision (recovery) for credit losses
    
9
      
(14
)
    
20
      
(22
)
Depreciation and amortization expense
    
42
      
44
      
126
      
140
  
Total costs and expenses
    
2,266
      
2,111
      
7,027
      
6,757
  
OPERATING INCOME
    
957
      
855
      
2,451
      
2,128
  
Interest income
    
98
      
84
      
280
      
253
  
Other income
    
-
      
11
      
17
      
15
  
INCOME BEFORE TAXES
    
1,055
      
950
      
2,748
      
2,396
  
Income tax expense
    
255
      
228
      
666
      
541
  
NET INCOME
  
$
800
    
$
722
    
$
2,082
    
$
1,855
  
                                 
INCOME PER SHARE OF COMMON STOCK
                                
Basic
  
$
0.06
    
$
0.05
    
$
0.15
    
$
0.13
  
Diluted
  
$
0.06
    
$
0.05
    
$
0.15
    
$
0.13
  
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
                                
Basic
    
14,212
      
14,508
      
14,212
      
14,595
  
Diluted
    
14,298
      
14,532
      
14,298
      
14,618
  

RAVE RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
   
March 29,
2026
    
June 29,
2025
  
ASSETS
            
CURRENT ASSETS
            
Cash and cash equivalents
  
$
1,145
    
$
2,859
  
Short-term investments
    
10,855
      
7,024
  
Accounts receivable, less allowance for credit losses of $49 and $31, respectively
    
1,671
      
1,171
  
Notes receivable, current
    
32
      
45
  
Assets held for sale
    
34
      
38
  
Deferred contract charges, current
    
23
      
21
  
Prepaid expenses and other current assets
    
600
      
335
  
Total current assets
    
14,360
      
11,493
  
                 
LONG-TERM ASSETS
                
Property and equipment, net
    
122
      
137
  
Operating lease right-of-use assets, net
    
256
      
489
  
Intangible assets definite-lived, net
    
120
      
182
  
Notes receivable, net of current portion
    
65
      
75
  
Deferred tax asset, net
    
3,431
      
3,995
  
Deferred contract charges, net of current portion
    
227
      
186
  
Total assets
  
$
18,581
    
$
16,557
  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
CURRENT LIABILITIES
                
Accounts payable - trade
  
$
345
    
$
207
  
Accrued expenses
    
754
      
855
  
Operating lease liabilities, current
    
286
      
370
  
Deferred revenues, current
    
279
      
308
  
Total current liabilities
    
1,664
      
1,740
  
                 
LONG-TERM LIABILITIES
                
Operating lease liabilities, net of current portion
    
13
      
206
  
Deferred revenues, net of current portion
    
457
      
457
  
Total liabilities
    
2,134
      
2,403
  
                 
COMMITMENTS AND CONTINGENCIES (SEE NOTE C)
                
                 
SHAREHOLDERS’ EQUITY
                
Common stock, $0.01 par value; authorized 26,000,000 shares; issued 25,647,171 and 25,647,171 shares, respectively; outstanding 14,211,566 and 14,211,566 shares, respectively
    
256
      
256
  
Additional paid-in capital
    
37,727
      
37,516
  
Retained earnings
    
9,696
      
7,614
  
Treasury stock, at cost
                
Shares in treasury: 11,435,605 and 11,435,605 respectively
    
(31,232
)
    
(31,232
)
Total shareholders’ equity
    
16,447
      
14,154
  
                 
Total liabilities and shareholders’ equity
  
$
18,581
    
$
16,557
  

RAVE RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
   
Nine Months Ended
  
   
March 29,
2026
    
March 30,
2025
  
CASH FLOWS FROM OPERATING ACTIVITIES:
            
Net income
  
$
2,082
    
$
1,855
  
Adjustments to reconcile net income to cash provided by operating activities:
                
Amortization of discount on short-term investment
    
(112
)
    
(110
)
Impairment of long-lived assets and other lease charges
    
-
      
9
  
Stock-based compensation expense
    
211
      
178
  
Depreciation and amortization
    
64
      
70
  
Amortization of operating lease right-of-use assets
    
233
      
276
  
Amortization of definite-lived intangible assets
    
62
      
61
  
Non-cash lease expense
    
10
      
19
  
Provision (recovery) for credit losses
    
20
      
(22
)
Deferred income tax
    
564
      
459
  
Changes in operating assets and liabilities:
                
Accounts receivable
    
(520
)
    
212
  
Notes receivable
    
23
      
16
  
Deferred contract charges
    
(43
)
    
25
  
Prepaid expenses and other current assets
    
(265
)
    
(49
)
Accounts payable - trade
    
138
      
66
  
Accrued expenses
    
(101
)
    
(315
)
Operating lease liabilities
    
(287
)
    
(333
)
Deferred revenues
    
(29
)
    
(215
)
Cash provided by operating activities
    
2,050
      
2,202
  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Purchases of short-term investments
    
(12,939
)
    
(12,265
)
Maturities of short-term investments
    
9,220
      
9,333
  
Purchase of assets held for sale
    
(4
)
    
-
  
Proceeds from sale of assets held for sale
    
8
      
9
  
Purchase of property and equipment
    
(49
)
    
(44
)
Cash used in investing activities
    
(3,764
)
    
(2,967
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Purchase of treasury stock
    
-
      
(1,205
)
Taxes paid on issuance of restricted stock units
    
-
      
(182
)
Cash used in financing activities
    
-
      
(1,387
)
                 
Net decrease in cash and cash equivalents
    
(1,714
)
    
(2,152
)
Cash and cash equivalents, beginning of period
    
2,859
      
2,886
  
Cash and cash equivalents, end of period
  
$
1,145
    
$
734
  
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
                
                 
CASH PAID FOR:
                
Income taxes
  
$
106
    
$
98
  

RAVE RESTAURANT GROUP, INC.
ADJUSTED EBITDA
(In thousands)
(Unaudited)
   
Three Months Ended
    
Nine Months Ended
  
   
March 29,
2026
    
March 30,
2025
    
March 29,
2026
    
March 30,
2025
  
Net income
  
$
800
    
$
722
    
$
2,082
    
$
1,855
  
Interest income
    
(98
)
    
(84
)
    
(280
)
    
(253
)
Income taxes
    
255
      
228
      
666
      
541
  
Depreciation and amortization
    
42
      
44
      
126
      
140
  
EBITDA
  
$
999
    
$
910
    
$
2,594
    
$
2,283
  
Stock-based compensation expense
    
111
      
52
      
211
      
178
  
Severance
    
8
      
7
      
14
      
12
  
Franchisee default and closed store revenue
    
(9
)
    
(16
)
    
(28
)
    
7
  
Adjusted EBITDA
  
$
1,109
    
$
953
    
$
2,791
    
$
2,480