Rave Restaurant Group (RAVE) AI Stock Analysis

• Market Cap: $39.79M
• Dividend Yield: N/A
• Average Volume (3M): 24.63K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.66
• Revenue Growth: 2.93%
• EPS Growth: 20.81%
• Country: US
• Employees: 21
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Restaurants
• EPS (TTM): 0.05
• Shares Outstanding: 14,211,566
• 10 Day Avg. Volume: 25,163
• 30 Day Avg. Volume: 24,627
• PEG Ratio: 2.68
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.33
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: 2.70
• 1Y Price Target: $3.00
• Price Target Upside: 7.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $3.00 ▲(7.14%Upside)

Rave Restaurant Group's overall score is driven by its strong financial performance, characterized by impressive revenue growth and profitability, supported by a stable balance sheet. Technical analysis presents a neutral outlook, while valuation is reasonable. The absence of earnings call insights or corporate events does not impact the score.

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 multiple streams, primarily via the franchising and operation of its restaurant brands, Pizza Inn and Pie Five Pizza Co. The company earns money from franchise fees, royalties, and supply chain revenues, as franchisees pay RAVE for the rights to operate under its brand names. Additionally, the company operates some corporate-owned restaurants, contributing directly to its revenue. RAVE also benefits from supply chain services by providing ingredients and other necessary products to its franchise network. Significant partnerships with suppliers and real estate entities further enhance its ability to maximize revenue and expand its market presence.

Rave Restaurant Group Financial Statement Overview

Summary

Rave Restaurant Group demonstrates strong financial health with robust revenue growth, high profitability margins, and efficient cash flow management. The balance sheet is solid with low leverage and a strong equity position, although 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	8.82M	8.49M	7.93M	7.41M	5.93M	6.50M
EBITDA	3.81M	3.57M	2.81M	3.03M	2.32M	597.00K
Net Income	2.73M	2.47M	1.61M	8.02M	1.52M	-4.23M
Balance Sheet
Total Assets	15.71M	15.82M	14.24M	18.52M	13.35M	9.71M
Cash, Cash Equivalents and Short-Term Investments	8.72M	7.83M	5.33M	7.72M	8.33M	2.97M
Total Debt	667.00K	957.00K	1.42M	1.94M	4.20M	6.31M
Total Liabilities	2.36M	3.12M	3.85M	5.10M	7.61M	9.20M
Stockholders Equity	13.35M	12.70M	10.39M	13.41M	5.73M	503.00K
Cash Flow
Free Cash Flow	3.52M	2.66M	2.40M	1.22M	1.20M	-416.00K
Operating Cash Flow	3.58M	2.74M	2.63M	1.38M	1.49M	-360.00K
Investing Cash Flow	-7.77M	-4.87M	-15.00K	338.00K	-238.00K	67.00K
Financing Cash Flow	-1.21M	-311.00K	-5.01M	-2.33M	3.88M	999.00K

Rave Restaurant Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2.8 is above the 20-day moving average (MA) of 2.75, above the 50-day MA of 2.69, and above the 200-day MA of 2.68, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.47 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
BDL	75 Outperform	$58.08M	14.34	6.48%	3.08%	9.38%	14.76%
RAVE	73 Outperform	$39.79M	15.01	21.75%	―	2.93%	20.81%
GTIM	68 Neutral	$16.52M	16.02	3.45%	―	4.21%	73.81%
Sector *	63 Neutral	$17.32B	10.90	-7.25%	3.10%	1.66%	-25.40%
ARKR	50 Neutral	$31.57M	―	-22.57%	2.14%	-3.61%	-36.65%
FAT	44 Neutral	$43.38M	―	38.50%	127.94%	10.63%	-93.67%
NDLS	40 Underperform	$43.46M	―	-978.37%	―	-0.61%	-200.32%