Rave Restaurant Group (RAVE) AI Stock Analysis

• Market Cap: $32.81M
• Dividend Yield: N/A
• Average Volume (3M): 22.95K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.62
• Revenue Growth: 2.83%
• EPS Growth: 37.01%
• Country: US
• Employees: 21
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Restaurants
• EPS (TTM): 0.18
• Shares Outstanding: 14,711,566
• 10 Day Avg. Volume: 34,466
• 30 Day Avg. Volume: 22,951
• PEG Ratio: 0.33
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.31
• Price to Cash Flow (P/CF): 14.60
• P/FCF Ratio: 13.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Rave Restaurant Group demonstrates strong financial performance with robust revenue growth and profitability, contributing significantly to its overall score. However, technical analysis indicates bearish momentum, and while the valuation appears reasonable, the lack of dividend yield is a minor concern. Overall, Rave's financial health is a strong foundation, but market sentiment and technical signals warrant caution in the short term.

Rave Restaurant Group Business Overview & Revenue Model

Company Description

Rave Restaurant Group (RAVE) is a publicly traded company that operates in the restaurant industry, primarily focusing on the pizza segment. The company owns, operates, and franchises a portfolio of pizza brands, including Pizza Inn and Pie Five Pizza. RAVE is committed to delivering delicious, high-quality pizza experiences to its customers through its network of brick-and-mortar locations and innovative dining concepts.

How the Company Makes Money

Rave Restaurant Group generates revenue through a combination of company-owned restaurant sales and franchise operations. The company earns money from the sales at its company-owned Pizza Inn and Pie Five Pizza locations, as well as collecting franchise fees and ongoing royalties from franchised restaurants. Additional revenue streams include supply chain services for franchisees, which involve providing ingredients and other necessary products to ensure consistency and quality across all locations. RAVE's earnings are further supported by its strategic partnerships and marketing initiatives aimed at expanding its brand presence and attracting new franchisees.

Rave Restaurant Group Financial Statement Overview

Summary

Rave Restaurant Group shows strong revenue growth and profitability, supported by efficient cost and cash flow management. The balance sheet reflects low financial leverage and high equity, although limited asset expansion should be monitored.

Income Statement

Rave Restaurant Group has demonstrated strong revenue growth with a robust increase from $8.59 million in 2021 to $12.24 million in the TTM. Gross profit and net income margins are impressive, with gross profit margin consistently above 70% and the TTM net profit margin at approximately 21.8%. This indicates efficient cost management and profitability. There is notable EBIT and EBITDA margin improvement, reflecting operational efficiency.

Balance Sheet

The balance sheet is solid with a declining debt-to-equity ratio, currently at a low 0.055 in the TTM, indicating low financial leverage. The equity ratio is strong, showing a healthy balance of equity to assets. Return on equity is robust, driven by increasing net income. However, the declining total assets may suggest limited asset expansion.

Cash Flow

Operating cash flow has shown consistent growth, supporting business operations effectively. The free cash flow is positive and growing, indicating strong cash management. The operating cash flow to net income ratio is favorable, suggesting good cash generation from profits. However, large negative investing cash flows could indicate significant capital expenditures or investments.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
12.24M	12.15M	11.89M	10.69M	8.59M	9.99M
	Gross Profit
8.71M	8.49M	7.93M	7.41M	5.93M	6.50M
	EBIT
4.12M	3.16M	1.08M	2.48M	1.06M	849.00K
	EBITDA
3.76M	3.72M	2.81M	3.03M	2.32M	597.00K
	Net Income Common Stockholders
2.67M	2.47M	1.61M	8.02M	1.52M	-4.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
595.00K	7.83M	5.33M	7.72M	8.33M	2.97M
	Total Assets
8.72M	15.82M	14.24M	18.52M	13.35M	9.71M
	Total Debt
330.00K	957.00K	1.42M	1.94M	4.20M	6.31M
	Net Debt
-249.00K	-1.93M	-3.91M	-5.78M	-4.13M	3.34M
	Total Liabilities
4.43M	3.12M	3.85M	5.10M	7.61M	9.20M
	Stockholders Equity
4.29M	12.70M	10.39M	13.41M	5.73M	503.00K
Cash Flow		Free Cash Flow
3.57M	2.66M	2.40M	1.22M	1.20M	-416.00K
	Operating Cash Flow
3.65M	2.74M	2.63M	1.38M	1.49M	-360.00K
	Investing Cash Flow
-5.90M	-4.87M	-15.00K	338.00K	-238.00K	67.00K
	Financing Cash Flow
-182.00K	-311.00K	-5.01M	-2.33M	3.88M	999.00K

Rave Restaurant Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAVE, the sentiment is Negative. The current price of 2.23 is below the 20-day moving average (MA) of 2.43, below the 50-day MA of 2.62, and below the 200-day MA of 2.42, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 45.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAVE.

Rave Restaurant Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	72 Outperform	$32.81M	12.31	21.44%	―	2.83%	37.01%
BDL	64 Neutral	$43.16M	13.07	5.48%	2.09%	8.87%	-5.22%
GTIM	61 Neutral	$20.22M	9.00	7.29%	―	5.55%	-76.32%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%
ARKR	46 Neutral	$30.64M	―	-4.24%	8.90%	-2.05%	66.57%
NDLS	41 Neutral	$40.40M	―	-335.60%	―	-2.01%	-267.04%
FAT	34 Underperform	$41.91M	―	38.50%	22.31%	23.35%	-101.64%