Research Desk Line-up: Jack in the Box Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 18, 2017 /Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for RAVE Restaurant Group, Inc. (NASDAQ: RAVE), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=RAVE. The Company announced on August 15, 2017, that it has commenced a $5 million registered rights offering for shares of its common stock. Under the announcement, shareholders are being distributed one right for each share of common stock owned on August 01, 2017. Each right, according to the Company, entitles the shareholder to purchase 0.3351393 shares of its common stock at a subscription price of $140 per share. For immediate access to our complimentary reports, including today's coverage, register for free now at:
Discover more of our free reports coverage from other companies within the Restaurants industry. Pro-TD has currently selected Jack in the Box Inc. (NASDAQ: JACK) for due-diligence and potential coverage as the Company reported on August 09, 2017, its financial results for Q3 FY17 which ended on July 09, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Jack in the Box when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RAVE; also brushing on JACK. Go directly to your stock of interest and access today's free coverage at:
The Company announced that it intends to use the net proceeds of the rights offering to repay indebtedness, fund continued restaurant development activity, and deliver working capital for general corporate purposes. The rights offering further includes an over-subscription right entitling shareholders who exercise all of their basic subscription rights to purchase additional shares of the common stock not purchased by other rights holders.
RAVE Restaurants is a Dallas-based group, which owns, operates and franchises more than 300 Pie Five Pizza Co., and Pizza Inn restaurants domestically and internationally. Prior to the announcement, on December 22, 2016, RAVE Restaurants reported that its Board of Directors had approved a capital raise by way of a registered rights offering where the proposed amount was $3 million. In anticipation of the rights offering, the Company received $1 million of short-term funding from its largest shareholder, NewCastle Partners, L.P., through a promissory note that it is expected to be repaid with proceeds from the rights offering.
Company Growth Prospects
On May 10, 2017, RAVE Restaurant Group reported its Q3 FY17 results for the period ended March 26, 2017. The Company reported total consolidated revenue to decline 7.7% to $14.1 million in Q3 FY17 from $15.3 million in Q3 FY16. The Company's subsidiary, Pie Five's comparable store retail sales also fell 15.8% in Q3 FY17 YOY. Pizza Inn, on the other hand, reported a minimal surge of 0.1% in the comparable store sales in Q3 FY17 from Q3 FY16. The Company's net loss of $2.0 million for the three-month period ended March 26, 2017, was $0.7 million higher than the Q3 FY16 loss.
RAVE Restaurants stated that the $2.0 million loss was attributable to a $0.3 million loss on sale of assets in the Q3 FY17, related equipment disposals at closed stores, along with executive recruiting fees. Also, the YTD increase in net loss according to the Company was due to increased impairments and other lease charges of $5.2 million and $1.0 million of losses from the sale of assets. RAVE Restaurants also attributed the decreased comparable store retail sales to increased competition within the fast-casual segment and general industry softness, which has contributed to weakened trends within the Pie Five System.
The Company opened a total of 5 new franchised Pie Five restaurants, while 9 franchised and 9 Company restaurants were closed.
Last Close Stock Review
At the close of trading session on Thursday, August 17, 2017, RAVE Restaurant's stock price declined 8.24% to end the day at $1.56. A total volume of 214.81 thousand shares were exchanged during the session, which was above the 3-month average volume of 39.21 thousand shares. At Thursday's closing price, the stock's net capitalization stands at $17.07 million.
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