0001140361-26-019447
SEC filingSolid quarter driven by Pizza Inn's strong performance, with revenue and net income growing 8.7% and 10.8% respectively, though Pie Five continues to decline.
Revenue for the third quarter of fiscal 2026 increased 8.7% to $3.2 million compared to $3.0 million in the prior year period. The growth was primarily driven by increases in supplier and distributor incentives and domestic royalties, which benefited from higher system-wide retail sales at Pizza Inn. The volume of these incentive revenues is dependent on total retail sales, which are impacted by changes in comparable store sales and restaurant count.
Pie Five franchise revenue declined during the quarter, reflecting ongoing unit closures and lower retail sales. The segment continues to face headwinds, and management expects the trend of unit declines to persist.
Management expects Pizza Inn unit growth to continue, while Pie Five unit declines are anticipated to persist. The company remains focused on managing costs and generating positive cash flow. Key risks include changes in consumer preferences, franchisee performance, and the ability to maintain supplier and distributor relationships.