Rave Restaurant Group (RAVE) AI Stock Analysis

• Market Cap: $39.37M
• Dividend Yield: N/A
• Average Volume (3M): 22.39K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.62
• Revenue Growth: 2.93%
• EPS Growth: 20.81%
• Country: US
• Employees: 21
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 0.05
• Shares Outstanding: 14,211,566
• 10 Day Avg. Volume: 19,669
• 30 Day Avg. Volume: 22,393
• PEG Ratio: N/A
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.10
• 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's strength lies in its solid financial performance, marked by strong revenue growth, profitability, and cash flow management. The technical analysis indicates positive momentum, albeit with some caution. The valuation appears fair, supporting a stable outlook for the stock.

Rave Restaurant Group Business Overview & Revenue Model

Company Description

Rave 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 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 is performing well financially, with strong revenue growth, profitability, and efficient cash flow management. The company shows a favorable financial position with low leverage and high equity, supporting future growth opportunities. However, careful monitoring of asset and investment activities is advised to ensure continued stability.

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
3.24M	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
8.92M	7.83M	5.33M	7.72M	8.33M	2.97M
	Total Assets
16.11M	15.82M	14.24M	18.52M	13.35M	9.71M
	Total Debt
764.00K	957.00K	1.42M	1.94M	4.20M	6.31M
	Net Debt
-2.11M	-1.93M	-3.91M	-5.78M	-4.13M	3.34M
	Total Liabilities
2.34M	3.12M	3.85M	5.10M	7.61M	9.20M
	Stockholders Equity
13.78M	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: Positive
• Last Price: 2.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAVE, the sentiment is Positive. The current price of 2.77 is above the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.56, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.04 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAVE.

Rave Restaurant Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	76 Outperform	$39.37M	14.85	21.75%	―	2.93%	20.81%
BDL	63 Neutral	$43.20M	13.16	5.48%	2.14%	8.87%	-5.22%
GTIM	63 Neutral	$16.94M	16.43	3.45%	―	4.21%	73.81%
Sector *	61 Neutral	$6.97B	11.38	2.88%	3.90%	2.64%	-22.07%
ARKR	51 Neutral	$44.28M	―	-22.57%	6.29%	-3.61%	-36.65%
FAT	41 Neutral	$45.22M	―	38.50%	21.96%	10.63%	-93.67%
NDLS	41 Neutral	$39.24M	―	-978.37%	―	-0.61%	-200.32%