Rave Restaurant Group (RAVE) AI Stock Analysis

Rave Restaurant Group

(NASDAQ:RAVE)

Select Model

Rating:69Neutral

Price Target:$2.50▲(17.37% Upside)

Action:downgraded

Date:09/25/26

Strong financial performance with a nearly debt-free balance sheet and excellent cash conversion is the primary driver, tempered by weak technical momentum from price action below moving averages and negative indicators; reasonable valuation offers additional support.

Positive Factors

Strong profitabilitySustained net margins above 20% indicate that RAVE’s restaurant and franchise model has recently converted revenue into meaningful earnings. Maintaining this profitability can support reinvestment, strengthen resilience during operating volatility, and provide a durable base for future expansion.

Negative Factors

Uneven revenue growthAlthough revenue has increased over the full period, the decline in 2025 shows that growth has not been consistently steady. This uneven trajectory can make planning and reinvestment less predictable, while requiring continued execution to translate the 2026 rebound into durable expansion.

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.

Chart Insights

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.

Data provided by:

The Fly

Rave Restaurant Group (RAVE) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $29.70M
Dividend Yield: ―
Average Volume (3M): 53.28K
Price to Earnings (P/E): 10.3
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

Strong balance sheet with minimal debt, robust cash flows, and solid profitability offset by modest recent revenue growth.

Income Statement

74Positive

Balance Sheet

93Very Positive

Cash Flow

89Very Positive

Financial statement breakdown
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

Technical Analysis SentimentNegative

Last Price2.13

Price Trends

50DMA2.58Negative

100DMA2.90Negative

200DMA2.87Negative

Market Momentum

MACD-0.11Negative

RSI31.04Neutral

STOCH34.19Neutral

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 2.22, below the 50-day MA of 2.58, and below the 200-day MA of 2.87, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 31.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.19 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

UnderperformOutperform

Sector (61)

Financial Indicators

RAVE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	71Outperform	$111.46M	16.80	9.84%	1.00%	6.14%	53.60%
RAVE	69Neutral	$29.79M	10.32	17.95%	―	7.23%	8.40%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NDLS	49Neutral	$91.59M	-3.83	50.91%	―	0.19%	46.85%
GTIM	48Neutral	$13.62M	6.11	6.62%	―	-5.81%	78.41%
ARKR	38Underperform	$18.07M	-5.69	-9.79%	―	-9.48%	77.31%

* Consumer Cyclical Sector Average

Performance Comparison

RAVE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
RAVE	Rave Restaurant Group	2.09	-0.43	-17.06%
ARKR	Ark Restaurants Corp.	5.01	-2.09	-29.44%
BDL	Flanigan's Enterprises	59.97	28.98	93.55%
GTIM	Good Times Restaurants	1.29	-0.10	-7.19%
NDLS	Noodles & Company	15.35	9.84	178.43%

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 25, 2026

Rave Restaurant Group AI Stock Analysis