RAVE Restaurant Group, Inc. (RAVE) saw its loss widen to $1.50 million, or $0.14 a share for the quarter ended Sep. 25, 2016. In the previous year period, the company reported a loss of $0.56 million, or $0.05 a share. Revenue during the quarter grew 6.33 percent to $15.46 million from $14.54 million in the previous year period. Gross margin for the quarter expanded 40 basis points over the previous year period to 94.49 percent. Operating margin for the quarter stood at negative 9.48 percent as compared to a negative 5.35 percent for the previous year period.
Operating loss for the quarter was $1.46 million, compared with an operating loss of $0.78 million in the previous year period.
"Sales trends continued to be very challenging in the first fiscal quarter for the Pie Five system while sales in the Pizza Inn system were comparatively stable, and these trends have continued so far in the current quarter," said Clinton Coleman, Interim chief executive officer for Rave Restaurant Group, Inc. "We are implementing several new service, product, and marketing initiatives to address these poor traffic trends at Pie Five, including the recent launch of online ordering."
Operating cash flow turns negative
RAVE Restaurant Group, Inc. has spent $1.47 million cash to meet operating activities during the quarter as against cash inflow of $0.74 million in the last year period. The company has spent $0.16 million cash to meet investing activities during the quarter as against cash outgo of $3.56 million in the last year period.
Cash flow from financing activities was $0.81 million for the quarter, up 3.47 percent or $0.03 million, when compared with the last year period.
Cash and cash equivalents stood at $0.28 million as on Sep. 25, 2016, down 92.72 percent or $3.63 million from $3.92 million on Sep. 27, 2015.
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