Tim Mullany - Chief Financial Officer Scott Crane - Chief Executive Officer

Good day, and welcome to the RAVE Restaurant Group Reports Third Fiscal Quarter Financial Results Conference Call. All participants will be in listen-only mode [Operator Instructions]. After today's presentation, there'll be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Tim Mullany, Chief Financial Officer. Please go ahead.

Okay, thank you. Good afternoon, and thank you for joining the RAVE Restaurant Group’s fiscal third quarter 2018 earnings conference call. Everyone should have access to our fiscal third quarter 2018 earnings release that was published today. The press release can also be found at www.raverg.com in the Investor Relations section. Before we begin, I would like to remind everyone that part of our discussions today will include forward-looking statements. These forward-looking statements are not guarantees of future performance, and therefore, you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. Please note that during today’s conference call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating our performance. Any discussion of such information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of comparable GAAP measures is available in our earnings release. With that, I will turn the call over to Scott Crane, our CEO.

Thanks for joining us everybody to discuss our third quarter results as well. I’m really encouraged and we are encouraged that at both Pizza Inn and Pie Five that we’ve seen the targeted transition plan that we’ve been working on, which is progressing and yielding a great foundation for continued future growth. The overall improvements to our net loss, as well as the comparable sales increase at Pizza Inn shows that our committed focus to the franchises producing sustainable results. Pizza Inn is strengthening and it continues to gain momentum, extremely excited about this. And it’s a fifth straight quarter of increased same store sales, it’s really been a great trend for us as opposed to the industry over the last 18 months. So the third quarter of fiscal '18, our same store sales were -- comp sales increased 2.3% compared to the same period last year. But during January, we had some really bad weather on the East Coast with the Easter out there that impacted revenue. And we had 51 days of closures on the East Coast at some of our highest volume markets for the -- go get the comp sales days, so a big issue there. But despite those bad weather challenges, Pizza Inn still closed the third quarter on a strong note and continues to see growing traffic and revenue. Also the huge focus on top line growth for the new initiatives like All-Day Buffet, the enhanced online ordering program, the restaurant remodels, they’re all generating incremental sales and traffic for the brand. Also, we’re seeing new interest in the franchise system for new unit growth with new franchisees, as well as the existing franchisees, as I just mentioned, remodels with existing franchisees. And that’s our first time that all three of those have been…

All right. Thank you, Scott. Total consolidated revenue decreased to 59% to $2.7 million compared to $6.5 million in the third quarter of fiscal 2017. Year-to-date total consolidated revenues decreased 40.7% to $12.3 million compared to $20.7 million for the first nine months of fiscal 2017. This decline in revenues was primarily due to the transfer and closure of company-owned Pie Five units. Pizza Inn domestic comparable store retail sales increased 2.3% and 2% respectively for the three and nine month periods ended March 25, 2018 compared to the same period of the prior year. As Scott mentioned, we are pleased that Pizza Inn continues to see steady comp growth quarter-after-quarter. Pizza Inn total domestic retail sales declined 3.6% and 2.6% respectively for the three and nine month periods ended March 25, 2018 compared to the same periods of the prior year. The decrease was primarily a result of closures of underperforming non-buffet units. For Pie Five comparable store retail sales decreased by 12.6% for the most recent fiscal quarter compared to the same period of the prior year. Year-to-date Pie Five system wide retail sales decreased 18.5% compared to the same period in the prior year, primarily driven by 12.8% decrease in the average units open. Comparable store retail sales decreased by 14.9% during the first nine months of fiscal 2018 compared to the same period of the prior year. The highly competitive quick casual restaurant industry landscape has attributed to the declines in the Pie Five retail sales. Also, as Scott discussed briefly, we are addressing the industry pressures through new menu offerings, technology additions, brand consistency, heightened focus on our loyal guest base and new revenue channels. Pie Five system-wide retail sales decreased 19.6% for the third quarter of fiscal 2018 when compared to the same period…

[Operator Instructions] Our first question comes from [Dennis Wilden], a Private Investor. Please go ahead.

Thank you for taking my questions, I have two. Could you tell me if the Company is currently, or has received notification from NASDAQ that they are in complete continued listing requirement?

Yes, so we are -- obviously, currently in full compliance with all NASDAQ listing requirements. We’ve completed their evaluation period so there is no further communications going back and forth between us and NASDAQ.

So they don't need to send out a notice indicating that you are in full compliance right now.

I believe they have. They have in the past sent us communications that we are in compliance, and they’ve agreed that our explanations for our assumptions forecasting our future compliance are reasonable and acceptable. So we’re no longer in their watch system.

And the second question, could you explain whether or not the Company has any preferred stock and if it does has any of the that’s been retired, or are there plans to retire it and pay it off?

No the Company doesn’t. We don’t have any preferred stock.

[Operator Instructions] This concludes our question-and-answer session. The conference has also concluded. Thank you for attending today's presentation. You may now disconnect.