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Rave Restaurant Group (RAVE) AI Stock Analysis
Rave Restaurant Group
(NASDAQ:RAVE)
The stock’s score is driven primarily by a materially strengthened balance sheet and increasingly robust cash flows supporting a small but improving franchise business, offset by weak price momentum, contracting restaurant footprint, and earnings that rely heavily on the Pizza Inn segment. Valuation appears reasonable for the current risk-reward profile, offering some upside if operational execution and margins continue to improve.
Rave Restaurant Group Key Performance Indicators (KPIs)
Income Before Taxes by SegmentShows 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.
Rave’s profitability has become heavily concentrated in Pizza Inn, which shows clear, accelerating contribution and now shoulders most earnings upside; at the same time Company‑Owned Restaurants have been de‑risked to zero, implying an intentional shift to an asset‑light/franchise model. That shift’s benefit is muted by persistent corporate overhead, which hasn’t meaningfully shrunk, while Pie Five’s contribution has flattened and slid — increasing concentration risk and making margin gains contingent on Pizza Inn’s continued momentum.
The FlyRave Restaurant Group (RAVE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $30.70M
- Dividend Yield
- ―
- Average Volume (3M)
- 52.89K
- Price to Earnings (P/E)
- 10.7
- Beta (1Y)
- 0.79
- Revenue Growth
- 7.23%
- EPS Growth
- 8.40%
- Country
- US
- Employees
- 24
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
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), and...
How the Company Makes Money
Rave Restaurant Group makes money primarily through two channels: (1) sales generated by company-owned restaurants and (2) fees and royalties generated from franchised restaurants. 1) Company-owned restaurant sales: For restaurants it owns and operat...
Rave Restaurant Group Financial Statement Overview
Summary
Revenue, profitability, leverage, and cash generation have all improved, with low debt and cash flow now comfortably covering earnings, though segment concentration, shrinking unit counts, and past one-offs temper the upside.
Income Statement
78PositiveBalance Sheet
88Very PositiveCash Flow
86Very Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.91M | 12.91M | 12.04M | 12.15M | 11.89M | 10.69M |
| Gross Profit | 9.38M | 9.38M | 8.64M | 8.49M | 7.93M | 7.41M |
| EBITDA | 4.15M | 3.97M | 3.80M | 3.72M | 2.80M | 3.03M |
| Net Income | 2.88M | 2.88M | 2.70M | 2.47M | 1.61M | 8.02M |
Balance Sheet | ||||||
| Total Assets | 19.54M | 19.54M | 16.56M | 15.82M | 14.24M | 18.52M |
| Cash, Cash Equivalents and Short-Term Investments | 13.61M | 13.61M | 9.88M | 7.83M | 5.33M | 7.72M |
| Total Debt | 205.00K | 205.00K | 576.00K | 957.00K | 1.42M | 1.94M |
| Total Liabilities | 2.21M | 2.21M | 2.40M | 3.12M | 3.85M | 5.10M |
| Stockholders Equity | 17.33M | 17.33M | 14.15M | 12.70M | 10.39M | 13.41M |
Cash Flow | ||||||
| Free Cash Flow | 3.50M | 3.34M | 3.34M | 2.66M | 2.40M | 1.22M |
| Operating Cash Flow | 3.55M | 3.40M | 3.40M | 2.74M | 2.63M | 1.38M |
| Investing Cash Flow | -2.04M | -2.04M | -2.04M | -4.87M | -15.00K | 338.00K |
| Financing Cash Flow | -1.39M | -1.39M | -1.39M | -311.00K | -5.01M | -2.33M |
Rave Restaurant Group Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAVE, the sentiment is Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.21, below the 50-day MA of 2.56, and below the 200-day MA of 2.86, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 30.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAVE.
Rave Restaurant Group Peers Comparison
Overall Rating
BDL71Outperform- RAVE71Outperform
NDLS49Neutral
GTIM48Neutral
ARKR38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BDL | 71Outperform | $111.46M | 18.62 | 9.84% | 0.90% | 6.14% | 53.60% |
| RAVE | 71Outperform | $29.79M | 10.67 | 17.95% | ― | 7.23% | 8.40% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| NDLS | 49Neutral | $91.59M | -3.71 | 50.91% | ― | 0.19% | 46.85% |
| GTIM | 48Neutral | $13.62M | 6.30 | 6.62% | ― | -5.81% | 78.41% |
| ARKR | 38Underperform | $18.07M | -5.51 | -9.79% | ― | -9.48% | 77.31% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RAVE | Rave Restaurant Group | 2.16 | -0.17 | -7.30% | |
| ARKR | Ark Restaurants Corp. | 4.85 | -2.25 | -31.69% | |
| BDL | Flanigan's Enterprises | 66.46 | 35.38 | 113.81% | |
| GTIM | Good Times Restaurants | 1.33 | -0.01 | -0.75% | |
| NDLS | Noodles & Company | 14.90 | 9.43 | 172.49% |
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 25, 2026