Rave Restaurant Group (RAVE) AI Stock Analysis

• Market Cap: $49.03M
• Dividend Yield: N/A
• Average Volume (3M): 44.06K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.75
• Revenue Growth: -1.30%
• EPS Growth: 9.43%
• Country: US
• Employees: 21
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.06
• Shares Outstanding: 14,211,566
• 10 Day Avg. Volume: 46,461
• 30 Day Avg. Volume: 44,057
• PEG Ratio: 1.25
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 3.31
• P/FCF Ratio: 11.94
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 7.21
• 1Y Price Target: $4.00
• Price Target Upside: 15.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• 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 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 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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.04M	12.04M	12.15M	11.89M	10.69M	8.59M
Gross Profit	8.60M	8.46M	8.49M	7.93M	7.41M	5.93M
EBITDA	3.89M	4.15M	3.57M	2.81M	3.03M	2.32M
Net Income	2.70M	2.70M	2.47M	1.61M	8.02M	1.52M
Balance Sheet
Total Assets	16.56M	16.56M	15.82M	14.24M	18.52M	13.35M
Cash, Cash Equivalents and Short-Term Investments	9.88M	9.88M	7.83M	5.33M	7.72M	8.33M
Total Debt	576.00K	576.00K	957.00K	1.42M	1.94M	4.20M
Total Liabilities	2.40M	2.40M	3.12M	3.85M	5.10M	7.61M
Stockholders Equity	14.15M	14.15M	12.70M	10.39M	13.41M	5.73M
Cash Flow
Free Cash Flow	3.32M	3.34M	2.66M	2.40M	1.22M	1.20M
Operating Cash Flow	3.40M	3.40M	2.74M	2.63M	1.38M	1.49M
Investing Cash Flow	-2.04M	-2.04M	-4.87M	-15.00K	338.00K	-238.00K
Financing Cash Flow	-1.20M	-1.39M	-311.00K	-5.01M	-2.33M	3.88M

Rave Restaurant Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.45
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	76 Outperform	$49.03M	18.54	20.12%	―	-1.30%	9.43%
BDL	71 Outperform	$55.47M	12.84	5.48%	1.84%	8.83%	41.90%
GTIM	52 Neutral	$16.98M	13.75	3.80%	―	1.84%	12.10%
ARKR	45 Neutral	$26.32M	-1.88	-40.40%	―	-6.89%	-42.75%
FAT	45 Neutral	$35.79M	-0.15	39.58%	154.08%	0.96%	-57.29%
NDLS	41 Neutral	$28.75M	-0.66	649.09%	―	-1.23%	-68.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%