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.
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily