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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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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
$4.00
▲(15.94% Upside)
Rave Restaurant Group's strong financial performance, characterized by robust profitability and improved financial stability, is the most significant factor in its overall score. Positive technical indicators further support the stock's attractiveness. However, inconsistent revenue growth and the lack of a dividend yield slightly temper the overall score.

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 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.04M12.04M12.15M11.89M10.69M8.59M
Gross Profit8.60M8.46M8.49M7.93M7.41M5.93M
EBITDA3.89M4.15M3.57M2.81M3.03M2.32M
Net Income2.70M2.70M2.47M1.61M8.02M1.52M
Balance Sheet
Total Assets16.56M16.56M15.82M14.24M18.52M13.35M
Cash, Cash Equivalents and Short-Term Investments9.88M9.88M7.83M5.33M7.72M8.33M
Total Debt576.00K576.00K957.00K1.42M1.94M4.20M
Total Liabilities2.40M2.40M3.12M3.85M5.10M7.61M
Stockholders Equity14.15M14.15M12.70M10.39M13.41M5.73M
Cash Flow
Free Cash Flow3.32M3.34M2.66M2.40M1.22M1.20M
Operating Cash Flow3.40M3.40M2.74M2.63M1.38M1.49M
Investing Cash Flow-2.04M-2.04M-4.87M-15.00K338.00K-238.00K
Financing Cash Flow-1.20M-1.39M-311.00K-5.01M-2.33M3.88M

Rave Restaurant Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.45
Price Trends
50DMA
3.14
Positive
100DMA
2.91
Positive
200DMA
2.76
Positive
Market Momentum
MACD
0.12
Positive
RSI
54.09
Neutral
STOCH
44.15
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 3.45 is above the 20-day moving average (MA) of 3.45, above the 50-day MA of 3.14, and above the 200-day MA of 2.76, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$49.03M18.5420.12%-1.30%9.43%
71
Outperform
$55.47M12.845.48%1.84%8.83%41.90%
52
Neutral
$16.98M13.753.80%1.84%12.10%
45
Neutral
$26.32M-1.88-40.40%-6.89%-42.75%
45
Neutral
$35.79M-0.1539.58%154.08%0.96%-57.29%
41
Neutral
$28.75M-0.66649.09%-1.23%-68.38%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAVE
Rave Restaurant Group
3.45
1.42
69.95%
ARKR
Ark Restaurants
7.30
-4.69
-39.12%
BDL
Flanigan's Enterprises
29.85
3.60
13.71%
GTIM
Good Times Restaurants
1.61
-1.11
-40.81%
NDLS
Noodles & Co
0.62
-0.58
-48.33%
FAT
Fat Brands
1.96
-0.71
-26.59%
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: Sep 28, 2025