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Rave Restaurant Group (RAVE)
NASDAQ:RAVE
US Market
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Rave Restaurant Group (RAVE) AI Stock Analysis

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RAVE

Rave Restaurant Group

(NASDAQ:RAVE)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
$3.00
▲(7.53% Upside)
Rave Restaurant Group's strong financial performance is a key strength, driven by robust profit margins and improved financial stability. However, inconsistent revenue growth and negative free cash flow growth are concerns. Technical indicators suggest weak momentum, and the stock's valuation is reasonable but lacks a dividend yield.

Rave Restaurant Group (RAVE) vs. SPDR S&P 500 ETF (SPY)

Rave Restaurant Group Business Overview & Revenue Model

Company DescriptionRave Restaurant Group, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn trademark in the United States and internationally. It operates through three segments: Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants. The company's buffet restaurants are located in free standing buildings or strip centers in retail developments that offer dine-in, carryout, and catering services, as well as delivery services. Its delco restaurants provide delivery and carryout services and are located in shopping centers or other in-line retail developments. The company's Express restaurants serve customers through various non-traditional points of sale and are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. In addition, it operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks. As of June 27, 2021, the company had 33 franchised Pie Five Units, 156 franchised Pizza Inn restaurants, and 11 licensed Pizza Inn Express, or PIE, kiosks. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.
How the Company Makes MoneyRave Restaurant Group generates revenue through multiple streams, primarily from the sale of food and beverages in its restaurants. The company operates both company-owned and franchised locations, with franchise fees and royalties contributing significantly to its earnings. Additionally, RAVE engages in promotional partnerships and collaborations that enhance brand visibility and attract customers. The company also benefits from economies of scale in procurement and supply chain management, allowing it to maintain competitive pricing and improve margins. Overall, the combination of direct sales from its restaurants and fees from franchisees constitutes the core of RAVE's revenue model.

Rave Restaurant Group Financial Statement Overview

Summary
Rave Restaurant Group exhibits strong profitability with high profit margins and improved financial stability. The company has effectively managed its debt levels and maintained solid profit margins. However, revenue growth has been inconsistent, and free cash flow growth has been negative recently.
Income Statement
75
Positive
Rave Restaurant Group demonstrates strong profitability with a consistent gross profit margin above 65% and a net profit margin that has improved significantly over the years, reaching 22.44% in the latest period. However, revenue growth has been inconsistent, with a slight decline in the most recent year. The EBIT and EBITDA margins are robust, indicating efficient operations.
Balance Sheet
80
Positive
The company has significantly improved its financial stability, reducing its debt-to-equity ratio from a high of 12.54 to a more manageable 0.04. The return on equity remains strong at 19.09%, reflecting effective use of equity to generate profits. The equity ratio indicates a solid capital structure with a high proportion of equity financing.
Cash Flow
70
Positive
Rave Restaurant Group shows a healthy operating cash flow to net income ratio of 1.95, indicating strong cash generation relative to net income. However, free cash flow growth has been negative recently, which could be a concern if it persists. The free cash flow to net income ratio is nearly 1, suggesting efficient conversion of profits into cash.
BreakdownTTMDec 2025Dec 2024Dec 2019Dec 2018Dec 2017
Income Statement
Total Revenue12.04M12.04M12.15M12.32M15.12M57.11M
Gross Profit8.60M8.46M8.49M7.42M8.82M2.96M
EBITDA3.89M4.15M3.57M-231.00K-8.63M
Net Income2.70M2.70M2.47M-750.00K1.91M-12.49M
Balance Sheet
Total Assets16.56M16.56M15.82M10.43M10.99M9.55M
Cash, Cash Equivalents and Short-Term Investments9.88M9.88M7.83M2.26M1.39M451.00K
Total Debt576.00K576.00K957.00K1.58M1.56M3.75M
Total Liabilities2.40M2.40M3.12M5.99M4.69M11.63M
Stockholders Equity14.15M14.15M12.70M4.43M6.30M-2.08M
Cash Flow
Free Cash Flow3.32M3.34M2.66M578.00K-4.98M-6.12M
Operating Cash Flow3.40M3.40M2.74M659.00K-3.90M-5.55M
Investing Cash Flow-2.04M-2.04M-4.87M131.00K708.00K426.00K
Financing Cash Flow-1.20M-1.39M-311.00K88.00K4.13M4.70M

Rave Restaurant Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.79
Price Trends
50DMA
3.18
Negative
100DMA
2.95
Negative
200DMA
2.77
Positive
Market Momentum
MACD
-0.15
Positive
RSI
36.58
Neutral
STOCH
5.11
Positive
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 2.79 is below the 20-day moving average (MA) of 3.09, below the 50-day MA of 3.18, and above the 200-day MA of 2.77, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 5.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAVE.

Rave Restaurant Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$59.20M13.706.88%1.69%8.83%41.90%
62
Neutral
$39.65M14.9920.12%-1.30%9.43%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
$15.09M12.213.85%1.84%12.10%
48
Neutral
$36.14M152.45%0.96%-57.29%
43
Neutral
$25.96M-33.50%2.67%-6.89%-42.75%
41
Neutral
$31.01M-1.23%-68.38%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAVE
Rave Restaurant Group
2.79
-0.20
-6.69%
ARKR
Ark Restaurants
7.10
-4.65
-39.57%
BDL
Flanigan's Enterprises
32.49
6.96
27.26%
GTIM
Good Times Restaurants
1.52
-1.31
-46.29%
NDLS
Noodles & Co
0.67
-0.50
-42.74%
FAT
Fat Brands
1.98
-0.78
-28.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 07, 2025