RAVE Restaurant Group, Inc. (RAVE) saw its loss widen to $7.92 million, or $0.74 a share for the quarter ended Dec. 25, 2016. In the previous year period, the company reported a loss of $4.83 million, or $0.45 a share. Revenue during the quarter dropped 3.39 percent to $14.79 million from $15.31 million in the previous year period. Gross margin for the quarter contracted 45 basis points over the previous year period to 93.35 percent. Operating margin for the quarter stood at negative 53.66 percent as compared to a negative 12.49 percent for the previous year period.
Operating loss for the quarter was $7.94 million, compared with an operating loss of $1.91 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.18 million compared with $0.06 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.97 percent for the quarter compared to 0.40 percent in the last year period.
"We are aggressively exploring bold new strategies that can be deployed to ultimately improve financial performance," said Scott Crane, chief executive officer for Rave Restaurant Group, Inc. "Over the next year we will be addressing underperforming markets while also improving the overall customer experience at all of our restaurants."
Operating cash flow turns negative
RAVE Restaurant Group, Inc. has spent $1.68 million cash to meet operating activities during the first half as against cash inflow of $1.47 million in the last year period. The company has spent $0.13 million cash to meet investing activities during the first six months as against cash outgo of $6.46 million in the last year period. It has incurred net capital expenditure of $0.13 million on net basis during the first six months, down 98 percent or $6.33 million from year ago period.
Cash flow from financing activities was $1.81 million for the first six months, up 133.64 percent or $1.03 million, when compared with the last year period.
Cash and cash equivalents stood at $1.10 million as on Dec. 25, 2016, down 37.15 percent or $0.65 million from $1.75 million on Dec. 27, 2015.
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