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Rave Restaurant Group
(NASDAQ:RAVE)
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Rating:77Outperform
Price Target:
$3.50
▲(6.71% Upside)
Action:Reiterated
Date:05/09/26
The score is driven mainly by strong financial performance—especially the very low leverage and healthy cash generation—supported by a reasonable P/E. Technicals are only moderately positive, with short-term strength but the stock still below longer-term moving averages, and KPI trends (unit shrinkage and Pie Five weakness) add execution risk.
Positive Factors
Conservative Capital Structure
Extremely low debt (D/E ~0.02) creates durable financial flexibility: the company can fund franchisor support, remodels, or weather restaurant cyclicality without distress. This conservative balance sheet lowers refinancing risk and preserves strategic optionality over 2–6 months and beyond.
Negative Factors
Unit Attrition / Brand Weakness
Shrinking unit count and a weakening key brand reduce the royalty and franchise-fee growth runway. Over the medium term this erodes recurring revenue, increases marketing and redevelopment costs, and makes system-level recovery dependent on successful franchise recruitment and unit stabilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Capital Structure
Extremely low debt (D/E ~0.02) creates durable financial flexibility: the company can fund franchisor support, remodels, or weather restaurant cyclicality without distress. This conservative balance sheet lowers refinancing risk and preserves strategic optionality over 2–6 months and beyond.
Read all positive factors
Rave Restaurant Group Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Shows pre-tax profit for each part of the business (for example, company-owned restaurants vs. franchising). Highlights which segments are truly profitable, where margins are strongest, and whether growth in sales is translating into bottom-line gains or being eroded by higher costs.
Shows pre-tax profit for each part of the business (for example, company-owned restaurants vs. franchising). Highlights which segments are truly profitable, where margins are strongest, and whether growth in sales is translating into bottom-line gains or being eroded by higher costs.
Data provided by:
The Fly
The FlyRave Restaurant Group (RAVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.90M
Dividend YieldN/A
Average Volume (3M)48.85K
Price to Earnings (P/E)16.0
Beta (1Y)0.86
Revenue Growth3.20%
EPS Growth9.92%
CountryUS
Employees21
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.21
Shares Outstanding14,211,566
10 Day Avg. Volume51,548
30 Day Avg. Volume48,853
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)2.82
Price to Sales (P/S)3.31
P/FCF Ratio11.94
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue3.59
Enterprise Value/Gross Profit4.91
Enterprise Value/Ebitda10.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rave Restaurant Group Business Overview & Revenue Model
Company Description
RAVE Restaurant Group, Inc., through its various subsidiaries, manages a diverse portfolio of pizza restaurant concepts. It primarily operates and licenses locations under the Pizza Inn brand, which encompasses buffet, delivery/carry-out (delco), ...
How the Company Makes Money
Rave Restaurant Group makes money primarily through two business models: (1) operating company-owned restaurants and (2) franchising its restaurant brands. For company-owned locations, revenue is generated from direct restaurant sales to customers...
Rave Restaurant Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.63M | 12.04M | 12.15M | 11.89M | 10.69M | 8.59M |
| Gross Profit | 9.23M | 8.64M | 8.49M | 7.93M | 7.41M | 5.93M |
| EBITDA | 4.35M | 3.80M | 3.72M | 2.80M | 3.03M | 2.32M |
| Net Income | 2.93M | 2.70M | 2.47M | 1.61M | 8.02M | 1.52M |
Balance Sheet | ||||||
| Total Assets | 18.58M | 16.56M | 15.82M | 14.24M | 18.52M | 13.35M |
| Cash, Cash Equivalents and Short-Term Investments | 12.00M | 9.88M | 7.83M | 5.33M | 7.72M | 8.33M |
| Total Debt | 299.00K | 576.00K | 957.00K | 1.42M | 1.94M | 4.20M |
| Total Liabilities | 2.13M | 2.40M | 3.12M | 3.85M | 5.10M | 7.61M |
| Stockholders Equity | 16.45M | 14.15M | 12.70M | 10.39M | 13.41M | 5.73M |
Cash Flow | ||||||
| Free Cash Flow | 3.21M | 3.34M | 2.66M | 2.40M | 1.22M | 1.20M |
| Operating Cash Flow | 3.28M | 3.40M | 2.74M | 2.63M | 1.38M | 1.49M |
| Investing Cash Flow | -2.87M | -2.04M | -4.87M | -15.00K | 338.00K | -238.00K |
| Financing Cash Flow | 1.00K | -1.39M | -311.00K | -5.01M | -2.33M | 3.88M |
Rave Restaurant Group Technical Analysis
Positive
3.28
Price Trends
3.02
Positive
2.85
Positive
2.94
Positive
Market Momentum
0.09
Positive
55.07
Neutral
35.99
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 3.28 is below the 20-day moving average (MA) of 3.30, above the 50-day MA of 3.02, and above the 200-day MA of 2.94, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 35.99 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $46.90M | 15.96 | 19.21% | ― | 3.20% | 9.92% | |
63 Neutral | $86.67M | 12.96 | 9.04% | 1.89% | 5.74% | 47.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $70.82M | -1.89 | 90.61% | ― | -0.12% | 7.25% | |
52 Neutral | $14.99M | 8.30 | 3.18% | ― | -5.12% | 73.41% | |
42 Neutral | $21.56M | -3.36 | -29.84% | ― | -11.28% | 36.59% |
* Consumer Cyclical Sector Average
RAVE
Rave Restaurant Group
3.29
0.49
17.50%
ARKR
Ark Restaurants
5.85
-2.90
-33.14%
BDL
Flanigan's Enterprises
41.60
9.02
27.69%
GTIM
Good Times Restaurants
1.42
-0.24
-14.46%
NDLS
Noodles & Co
12.05
4.88
68.01%
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.