RAVE RESTAURANT GROUP INC
For the period ended Mar 24, 2024. Filed May 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 24, 2024 · Filed May 2, 2024
RAVE$2.12-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-12-24; filed 2024-02-01.
0001140361-24-005023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-03-24; filed 2024-05-02.
0001140361-24-023848
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 84 previous paragraphs and 86 current paragraphs.
52 unchanged; 28 reworded; 6 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 21 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Nine Months Ended March 24, 2024
Current report
Nine Months Ended March 24, 2024 and March 26, 2023
Current report
Provision for Credit Losses
Current report
Total income tax expense consists of the following (in thousands):
Current report
For the three and nine months ended March 24, 2024, the Company recorded an income tax expense of $200 thousand and $319 thousand, respectively. For the three and nine months ended March 26, 2023, the Company recorded an income tax expense of $115 thousand and $347 thousand, respectively. The increase for the three months ended as of March 24, 2024 was primarily due to a increase in federal taxes, driven by higher taxable income. The decrease for the nine months ended as of March 24, 2024 was primarily due to a decrease in state taxes and a discrete item recorded in the second quarter of fiscal 2024 related to the restricted stock issuances.
Current report
For the three and nine months ended March 24, 2024, the Company recorded a tax benefit related to RSUs issued of zero and $149 thousand, respectively. For the three and nine months ended March 26, 2023, the Company recorded a tax benefit related to RSUs issued of zero and zero, respectively.
Removed paragraphs (4)
Previous report
Six Months Ended December 24, 2023
Previous report
Six Months Ended December 24, 2023 and December 25, 2022
Previous report
Bad Debt Expense
Previous report
For the three and six months ended December 24, 2023, the Company recorded an income tax benefit of $13 thousand and a tax expense of $119 thousand, respectively. For the three and six months ended December 25, 2022, the Company recorded an income tax expense of $140 thousand and $232 thousand, respectively. The decrease for the three and six months ended as of December 24, 2023 was primarily due to a decrease in state taxes. For the three months ended December 24, 2023, the federal tax benefit was $23 thousand and the state tax expense was $10 thousand. For the six months ended December 24, 2023, the federal and state tax expense were $85 thousand and $34 thousand, respectively. For the three months ended December 25, 2022, the federal and state tax expense were $100 thousand and $40 thousand, respectively. For the six months ended December 25, 2022, the federal and state tax expense were $182 thousand and $50 thousand, respectively.
Reworded paragraphs (28)
Previous wording
The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended June 25, 2023 and may contain certain forward-looking statements that are based on current management expectations. Generally, verbs in the future tense and the words “believe,” “expect,” “anticipate,” “estimate,” “intends,” “opinion,” “potential” and similar expressions identify forward-looking statements. Forward-looking statements in this report include, without limitation, statements relating to our business objectives, our customers and franchisees, our liquidity and capital resources, and the impact of our historical and potential business strategies on our business, financial condition, and operating results. Our actual results could differ materially from our expectations. Further information concerning our business, including additional factors that could cause actual results to differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q, are set forth in our Annual Report on Form 10-K for the year ended June 25, 2023. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements contained herein speak only as of the date of this Quarterly Report on Form 10-Q and, except as may be required by applicable law, we do not undertake, and specifically disclaim any obligation to, publicly update or revise such statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Current wording
The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes appearing elsewhere in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended June 25, 2023, together with our Quarterly Reports on Form 10-Q for the periods ended September 24, and December 24, 2023, may contain certain forward-looking statements that are based on current management expectations. Generally, verbs in the future tense and the words “believe,” “expect,” “anticipate,” “estimate,” “intends,” “opinion,” “potential” and similar expressions identify forward-looking statements. Forward-looking statements in this report include, without limitation, statements relating to our business objectives, our customers and franchisees, our liquidity and capital resources, and the impact of our historical and potential business strategies on our business, financial condition, and operating results. Our actual results could differ materially from our expectations. Further information concerning our business, including additional factors that could cause actual results to differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q, are set forth in our Annual Report on Form 10-K for the year ended June 25, 2023, as well as our Quarterly Reports on Form 10-Q for the periods ended September 24, and December 24, 2023. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements contained herein speak only as of the date of this Quarterly Report on Form 10-Q and, except as may be required by applicable law, we do not undertake, and specifically disclaim any obligation to, publicly update or revise such statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Previous wording
Rave Restaurant Group, Inc., through its subsidiaries (collectively, the “Company” or “we,” “us” or “our”), franchises pizza buffet (“Buffet Units”), delivery/carry-out (“Delco Units”) and express (“Express Units”) restaurants under the trademark “Pizza Inn” and franchises fast casual pizza restaurants (“Pie Five Units”) and ghost kitchens ("Pie Five Ghost Kitchen Units") under the trademarks “Pie Five Pizza Company” or “Pie Five”. The Company also licenses Pizza Inn Express, or PIE, kiosks (“PIE Units”) under the trademark “Pizza Inn”. We facilitate food, equipment and supply distribution to our domestic and international system of restaurants through agreements with third party distributors. At December 24, 2023, franchised and licensed units consisted of the following:
Current wording
Rave Restaurant Group, Inc., through its subsidiaries (collectively, the “Company” or “we,” “us” or “our”), franchises pizza buffet (“Buffet Units”), delivery/carry-out (“Delco Units”), express (“Express Units”) restaurants and ghost kitchens ("Pizza Inn Ghost Kitchen Units") under the trademark “Pizza Inn” and franchises fast casual pizza restaurants (“Pie Five Units”) and ghost kitchens ("Pie Five Ghost Kitchen Units") under the trademarks “Pie Five Pizza Company” or “Pie Five”. The Company also licenses Pizza Inn Express, or PIE, kiosks (“PIE Units”) under the trademark “Pizza Inn”. We facilitate food, equipment and supply distribution to our domestic and international system of restaurants through agreements with third party distributors. At March 24, 2024, franchised and licensed units consisted of the following:
Previous wording
Basic net income per share increased $0.02 per share to $0.04 per share for the three months ended December 24, 2023, compared to the comparable period in the prior fiscal year. The Company had net income of $0.6 million for the three months ended December 24, 2023 compared to net income of $0.3 million in the comparable period in the prior fiscal year, on revenues of $2.8 million for the three months ended December 24, 2023 compared to $2.9 million in the comparable period in the prior fiscal year. The decrease in revenue was primarily due to decreases in franchise royalties and supplier and distributor incentives impacted by decreased store count offset by increased comparable store retail sales.
Current wording
Basic net income per share increased $0.02 per share to $0.04 per share for the three months ended March 24, 2024, compared to the comparable period in the prior fiscal year. The Company had net income of $0.7 million for the three months ended March 24, 2024 compared to net income of $0.3 million in the comparable period in the prior fiscal year, on revenues of $3.0 million for the three months ended March 24, 2024 compared to $3.0 million in the comparable period in the prior fiscal year. The stability in revenue was primarily due to increases in supplier and distributor incentives, offset by a decrease in domestic royalties.
Previous wording
Basic net income per share increased $0.03 per share to $0.07 per share for the six months ended December 24, 2023, compared to the comparable period in the prior fiscal year. The Company had net income of $0.9 million for the six months ended December 24, 2023 compared to net income of $0.7 million in the comparable period in the prior fiscal year, on revenues of $5.9 million for the six months ended December 24, 2023 compared to $5.9 million in the comparable period in the prior fiscal year. The stability in revenue was primarily due to increases in default and closed store revenues and franchise royalties, offset by a decrease in deferred marketing revenue.
Current wording
Basic net income per share increased $0.05 per share to $0.11 per share for the nine months ended March 24, 2024, compared to the comparable period in the prior fiscal year. The Company had net income of $1.6 million for the nine months ended March 24, 2024 compared to net income of $1.0 million in the comparable period in the prior fiscal year, on revenues of $8.8 million for the nine months ended March 24, 2024 compared to $8.8 million in the comparable period in the prior fiscal year. The revenue was consistent primarily due to increases in international default and closed store revenues, offset by a decrease in international royalties.
Previous wording
Adjusted EBITDA for the fiscal quarter ended December 24, 2023 remained relatively stable at $0.6 million compared to the same period of the prior fiscal year. Year-to-date Adjusted EBITDA remained relatively stable at $1.2 million compared to the same period of the prior fiscal year. The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown (in thousands):
Current wording
Adjusted EBITDA for the fiscal quarter ended March 24, 2024 increased $0.2 million compared to the same period of the prior fiscal year. Year-to-date Adjusted EBITDA increased $0.3 million compared to the same period of the prior fiscal year. The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown (in thousands):
Previous wording
Pizza Inn total domestic retail sales increased by $1.9 million, or 8.1%, for the three months ended December 24, 2023 when compared to the same period of the prior year. Compared to the same fiscal quarter of the prior year, average Buffet Units open in the period increased from 72 to 75. Comparable store retail sales increased by $1.6 million to $24.4 million for the three month period ended December 24, 2023 as compared to the same period of the prior fiscal year. For the three months ended December 24, 2023, the increase in domestic retail sales were primarily the result of the increase in Buffet Units, supplemented by an increase in comparable domestic store retail sales.
Current wording
Pizza Inn total domestic retail sales increased by $0.2 million, or 0.9%, for the three months ended March 24, 2024 when compared to the same period of the prior year. Compared to the same fiscal quarter of the prior year, average Buffet Units open in the period increased from 73 to 77. Comparable store retail sales decreased by $0.5 million to $24.7 million for the three month period ended March 24, 2024 as compared to the same period of the prior fiscal year. For the three months ended March 24, 2024, the increase in domestic retail sales were primarily the result of the increase in Buffet Units, offset by a decrease in comparable domestic store retail sales.
Previous wording
Pizza Inn total domestic retail sales increased by $4.0 million, or 8.3%, for the six months ended December 24, 2023 when compared to the same period of the prior year. Compared to the same fiscal quarter of the prior year, average Buffet Units open in the period increased from 73 to 77. Comparable store retail sales increased by $3.2 million to $49.0 million for the six month period ended December 24, 2023 as compared to the same period of the prior fiscal year. For the six months ended December 24, 2023, the increase in domestic retail sales were primarily the result of the increase in Buffet Units, supplemented by an increase in comparable domestic store retail sales.
Current wording
Pizza Inn total domestic retail sales increased by $4.2 million, or 5.7%, for the nine months ended March 24, 2024 when compared to the same period of the prior year. Compared to the same fiscal period of the prior year, average Buffet Units open in the period increased from 73 to 77. Comparable store retail sales increased by $2.7 million to $73.7 million for the nine month period ended March 24, 2024 as compared to the same period of the prior fiscal year. For the nine months ended March 24, 2024, the increase in domestic retail sales were primarily the result of the increase in Buffet Units, supplemented by an increase in comparable domestic store retail sales.
Previous wording
The following chart summarizes Pizza Inn restaurant activity for the three and six months ended December 24, 2023:
Current wording
The following chart summarizes Pizza Inn restaurant activity for the three and nine months ended March 24, 2024:
Previous wording
There was a net increase of one and a net decrease of 11 units in the total domestic Pizza Inn unit count during the three and six months ended December 24, 2023, respectively. There were two and two transfers in the total domestic Pizza Inn unit count during the three and six months ended December 24, 2023, respectively. For the three and six months ended December 24, 2023, the number of international Pizza Inn units decreased by four and 16 units, respectively. There were zero and zero transfers in the total international Pizza Inn unit count during the three and six months ended December 24, 2023, respectively. The Company believes the number of both domestic and international Pizza Inn units will increase modestly in future periods.
Current wording
There was a net decrease of eight and 19 units in the total domestic Pizza Inn unit count during the three and nine months ended March 24, 2024, respectively. There were one and four transfers in the total domestic Pizza Inn unit count during the three and nine months ended March 24, 2024, respectively. For the three and nine months ended March 24, 2024, the number of international Pizza Inn units increased by three and decreased by 13 units, respectively. There were zero transfers in the total international Pizza Inn unit count during the three and nine months ended March 24, 2024. The Company believes the number of both domestic and international Pizza Inn units will increase modestly in future periods.
Previous wording
Pie Five total domestic retail sales decreased $0.6 million, or 11.4%, for the three months ended December 24, 2023 when compared to the same period of the prior year. Compared to the same fiscal quarter of the prior year, average units open in the period decreased from 31 to 25. Comparable store retail sales remained relatively stable at $4.3 million during the second quarter of fiscal 2024 compared to the same period of the prior year. For the three months ended December 24, 2023, the decrease in domestic retail sales were primarily the result of the decrease in store count, offset by an increase in comparable store retail sales. For the six months ended December 24, 2023, the decrease in domestic retail sales were primarily the result of the decrease in store count, offset by a increase in comparable store retail sales.
Current wording
Pie Five total domestic retail sales decreased $1.2 million, or 24.3%, for the three months ended March 24, 2024 when compared to the same period of the prior year. Compared to the same fiscal quarter of the prior year, average units open in the period decreased from 31 to 24. Comparable store retail sales decreased by $0.3 million to $3.8 million during the third quarter of fiscal 2024 compared to the same period of the prior year. For the three months ended March 24, 2024, the decrease in domestic retail sales were primarily the result of the decrease in store count, supplemented by a decrease in comparable store retail sales. For the nine months ended March 24, 2024, the decrease in domestic retail sales were primarily the result of the decrease in store count, supplemented by a decrease in comparable store retail sales.
Previous wording
The following chart summarizes Pie Five restaurant activity for the three and six months ended December 24, 2023:
Current wording
The following chart summarizes Pie Five restaurant activity for the three and nine months ended March 24, 2024:
Previous wording
There was a net decrease of two and three units in the total domestic Pie Five unit count during the three and six months ended December 24, 2023, respectively. There was a net increase of one and one Pie Five Ghost Kitchen Units during the three and six months ended December 24, 2023, respectively. We believe that Pie Five units will decrease modestly in future periods.
Current wording
There was a net decrease of one and four units in the total domestic Pie Five unit count during the three and nine months ended March 24, 2024, respectively. There was a net increase of zero and one Pie Five Ghost Kitchen Units during the three and nine months ended March 24, 2024, respectively. We believe that Pie Five units will decrease modestly in future periods.
Previous wording
The Company defines its operating segments as Pizza Inn Franchising and Pie Five Franchising. The following is additional business segment information for the three and six months ended December 24, 2023 and December 25, 2022 (in thousands):
Current wording
The Company defines its operating segments as Pizza Inn Franchising and Pie Five Franchising. The following is additional business segment information for the three and nine months ended March 24, 2024 and March 26, 2023 (in thousands):
Previous wording
Revenues are derived from franchise royalties, franchise fees and supplier and distributor incentives, advertising funds, area development exclusivity fees and foreign master license fees, supplier convention funds, sublease rental income, interest and other income, and sales by Company-owned restaurants. The volume of supplier incentive revenues is dependent on the level of chain-wide retail sales, which are impacted by changes in comparable store sales and restaurant count, as well as the products sold to franchisees through third-party food distributors.
Current wording
Revenues are derived from franchise royalties, franchise fees and supplier and distributor incentives, advertising funds, area development exclusivity fees and foreign master license fees, supplier convention funds, sublease rental income, and interest and other income. The volume of supplier incentive revenues is dependent on the level of chain-wide retail sales, which are impacted by changes in comparable store sales and restaurant count, as well as the products sold to franchisees through third-party food distributors.
Previous wording
Total revenues for the three month period ended December 24, 2023 and for the same period of the prior fiscal year were $2.8 million and $2.9 million, respectively.
Current wording
Total revenues for the three month period ended March 24, 2024 and for the same period of the prior fiscal year were $3.0 million and $3.0 million, respectively.
Previous wording
Total revenues for the six month period ended December 24, 2023 and for the same period of the prior fiscal year were $5.9 million and $5.9 million, respectively.
Current wording
Total revenues for the nine month period ended March 24, 2024 and for the same period of the prior fiscal year were $8.8 million and $8.8 million, respectively.
Previous wording
Pizza Inn franchise revenues decreased by $0.1 million to $2.3 million for the three month period ended December 24, 2023 as compared to the same period in the prior fiscal year. The 3.4% decrease was driven by decreases in supplier incentives, offset by increases in domestic royalties. Pizza Inn franchise revenues increased by $0.1 million to $4.9 million for the six month period ended December 24, 2023 as compared to the same period in the prior fiscal year. The 1.1% increase was driven by increases in domestic royalties and default and closed store revenues.
Current wording
Pizza Inn franchise revenues remained relatively stable at $2.5 million for the three month period ended March 24, 2024 as compared to the same period in the prior fiscal year. The 2.0% increase was driven by increases in supplier and distributor incentives, offset by decreases in domestic royalties. Pizza Inn franchise revenues increased by $0.1 million to $7.4 million for the nine month period ended March 24, 2024 as compared to the same period in the prior fiscal year. The 1.4% increase was driven by increases in supplier and distributor incentives.
Previous wording
Pie Five franchise revenues decreased by $0.1 million to $0.4 million for the three month period ended December 24, 2023 as compared to the same period of the prior fiscal year. The 6.9% decrease was driven by decreases in domestic royalties and advertising fund revenues, offset by increases in default and closed store revenues. Pie Five franchise revenues decreased by $0.1 million to $0.9 million for the six month period ended December 24, 2023 as compared to the same period of the prior fiscal year. The 8.9% decrease was driven by decreases in domestic royalties, advertising fund revenues, and supplier and distributor incentives, offset by increases in default and closed store revenues.
Current wording
Pie Five franchise revenues decreased by $0.1 million to $0.4 million for the three month period ended March 24, 2024 as compared to the same period of the prior fiscal year. The 5.6% decrease was driven by decreases in domestic royalties and advertising fund revenues, offset by increases in default and closed store revenues and supplier and distributor incentives. Pie Five franchise revenues decreased by $0.1 million to $1.3 million for the nine month period ended March 24, 2024 as compared to the same period of the prior fiscal year. The 7.9% decrease was driven by decreases in domestic royalties and advertising fund revenues, offset by increases in default and closed store revenues.
Previous wording
Total general and administrative expenses decreased by $0.1 million to $1.3 million for the three month period ended December 24, 2023 as compared to the same period of the prior fiscal year. The 7.7% decrease in total general and administrative expenses during the three month period was primarily the result of decreased corporate expenses. Total general and administrative expenses decreased by $0.1 million to $2.7 million for the six month period ended December 24, 2023 as compared to the same period of the prior fiscal year. The 4.9% decrease in total general and administrative expenses during the six month period was primarily the result of decreased corporate expenses.
Current wording
Total general and administrative expenses decreased by $0.2 million to $1.3 million for the three month period ended March 24, 2024 as compared to the same period of the prior fiscal year. The 14.4% decrease in total general and administrative expenses during the three month period was primarily the result of decreased salaries. Total general and administrative expenses decreased by $0.4 million to $3.9 million for the nine month period ended March 24, 2024 as compared to the same period of the prior fiscal year. The 8.2% decrease in total general and administrative expenses during the nine month period was primarily for the same reason.
Previous wording
Franchise expenses include general and administrative expenses directly related to the sale and continuing service of domestic and international franchises. Total franchise expenses decreased by $0.02 million to $0.8 million for the three month period ended December 24, 2023 as compared to the same period of the prior fiscal year. The 2.7% decrease was primarily due to a decrease in advertising fees. Total franchise expenses decreased by $0.05 million to $2.0 million for the six month period ended December 24, 2023 as compared to the same period of the prior fiscal year. The 2.6% decrease was primarily due to a decrease in advertising fees.
Current wording
Franchise expenses include general and administrative expenses directly related to the sale and continuing service of domestic and international franchises. Total franchise expenses decreased by $0.2 million to $0.8 million for the three month period ended March 24, 2024 as compared to the same period of the prior fiscal year. The 15.8% decrease was primarily due to a decrease in advertising fees. Total franchise expenses decreased by $0.2 million to $2.8 million for the nine month period ended March 24, 2024 as compared to the same period of the prior fiscal year. The 6.8% decrease was primarily due to a decrease in advertising fees.
Previous wording
Impairment of long-lived assets and other lease charges was zero for the three month period ended December 24, 2023 compared to zero for the same period of the prior fiscal year. Impairment of long-lived assets and other lease charges was zero for the six month period ended December 24, 2023 compared to $5 thousand for the same period of the prior fiscal year. The decrease was primarily due to impaired beverage equipment in the prior period.
Current wording
Impairment of long-lived assets and other lease charges was zero for the three month period ended March 24, 2024 compared to zero for the same period of the prior fiscal year. Impairment of long-lived assets and other lease charges was zero for the nine month period ended March 24, 2024 compared to $5 thousand for the same period of the prior fiscal year. The decrease was primarily due to impaired beverage equipment in the prior period.
Previous wording
The Company monitors franchisee receivable balances and adjusts credit terms when necessary to minimize the Company’s exposure to high risk accounts receivable. For the three month period ended December 24, 2023, bad debt expense was $10 thousand compared to bad debt expense of $5 thousand for the same period of the prior fiscal year. Bad debt expense for the six month period ended December 24, 2023, increased by $26 thousand to $35 thousand compared to the same period of the prior fiscal year.
Current wording
The Company monitors franchisee receivable balances and adjusts credit terms when necessary to minimize the Company’s exposure to high risk accounts receivable. For the three month period ended March 24, 2024, provision for credit losses was $11 thousand compared to provision for credit losses of $28 thousand for the same period of the prior fiscal year. Provision for credit losses for the nine month period ended March 24, 2024, increased by $9 thousand to $46 thousand compared to the same period of the prior fiscal year.
Previous wording
Interest expense was zero for the three month period ended December 24, 2023 compared to the same period of the prior fiscal year. Interest expense decreased by $1 thousand to zero for the six month period ended December 24, 2023 compared to the same period of the prior fiscal year.
Current wording
Interest expense was zero for the three and nine months ended March 24, 2024, compared to the same periods of the prior fiscal year.
Previous wording
Amortization and depreciation expense increased slightly for the three and six months ended December 24, 2023, compared to the same periods of the prior year. In both cases, the increase was primarily the result of higher amortization of intangible assets.
Current wording
Amortization and depreciation expense increased slightly for the three and nine months ended March 24, 2024, compared to the same periods of the prior year. In both cases, the increase was primarily the result of higher amortization of intangible assets from an increase in expenditures for developing a new prototype.
Previous wording
During the six month period ended December 24, 2023, the Company's primary source of liquidity was proceeds from operating activities.
Current wording
During the nine month period ended March 24, 2024, the Company's primary source of liquidity was proceeds from operating activities.
Previous wording
Cash flows from operating activities generally reflect net income adjusted for certain non-cash items including depreciation and amortization, changes in deferred taxes, share based compensation, and changes in working capital. Cash provided by operating activities was $0.3 million for the six month period ended December 24, 2023 compared to cash provided by operating activities of $0.8 million for the six month period ended December 25, 2022. The primary driver of decreased operating cash flow during the six month period ended December 24, 2023 was increased collections of accounts receivable related to the employee retention credit in the prior year.
Current wording
Cash flows from operating activities generally reflect net income adjusted for certain non-cash items including depreciation and amortization, changes in deferred taxes, stock-based compensation, and changes in working capital. Cash provided by operating activities was $1.3 million for the nine month period ended March 24, 2024 compared to cash provided by operating activities of $1.2 million for the nine month period ended March 26, 2023. The primary driver of increased operating cash flow during the nine month period ended March 24, 2024 was increased net income due to lower employee related expenses.
Previous wording
Cash flows from investing activities reflect net proceeds from the sale of assets and capital expenditures for the purchase of Company assets. Cash used in investing activities during the six month period ended December 24, 2023 was nil compared to cash used in investing activities of $0.1 million for the six months ended December 25, 2022.
Current wording
Cash flows from investing activities reflect net proceeds from the sale of assets and capital expenditures for the purchase of Company assets. Cash used in investing activities during the nine month period ended March 24, 2024 was $0.05 million compared to cash used in investing activities of $0.1 million for the nine months ended March 26, 2023.
Previous wording
Cash flows used in financing activities generally reflect changes in the Company's stock and debt activity during the period. Net cash used in financing activities was $0.3 million for the six month period ended December 24, 2023 compared to net cash used in financing activities of $5.0 million for the six month period ended December 25, 2022. Net cash used by financing activities for the six months ended December 24, 2023 was primarily attributable to taxes paid on vested RSUs. Net cash used by financing activities for the six months ended December 25, 2022 was primarily attributable to repurchases of the Company's stock.
Current wording
Cash flows used in financing activities generally reflect changes in the Company's stock and debt activity during the period. Net cash used in financing activities was $0.3 million for the nine month period ended March 24, 2024 compared to net cash used in financing activities of $5.0 million for the nine month period ended March 26, 2023. Net cash used by financing activities for the nine months ended March 24, 2024 was primarily attributable to taxes paid on vested RSUs. Net cash used by financing activities for the nine months ended March 26, 2023 was primarily attributable to repurchases of the Company's stock.