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Rave Restaurant Group
(NASDAQ:RAVE)
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Rating:70Outperform
Price Target:
$2.50
▼(-19.61% Downside)
Action:Reiterated
Date:09/25/26
The score is driven primarily by strong financial performance (high profitability, strong cash generation, and a very low-debt balance sheet). Offsetting that, technicals are notably weak with the stock trading below all key moving averages and negative momentum signals. Valuation is supportive at a mid-teens P/E, but KPI insights highlight rising segment concentration and a shrinking unit base, which temper the otherwise solid fundamentals.
Positive Factors
Strong profitability
Sustained 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 growth
Although 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Sustained 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.
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
$32.54M
Dividend YieldN/A
Average Volume (3M)78.74K
Price to Earnings (P/E)11.5
Beta (1Y)0.78
Revenue Growth7.23%
EPS Growth8.40%
CountryUS
Employees24
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.20
Shares Outstanding14,211,566
10 Day Avg. Volume172,804
30 Day Avg. Volume78,739
Financial Highlights & Ratios
PEG Ratio3.22
Price to Book (P/B)2.78
Price to Sales (P/S)3.73
P/FCF Ratio14.43
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit3.75
Enterprise Value/Ebitda8.48
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 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 op...
Rave Restaurant Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.91M | 12.04M | 12.15M | 11.89M | 10.69M |
| Gross Profit | 9.38M | 8.64M | 8.49M | 7.93M | 7.41M |
| EBITDA | 3.97M | 3.80M | 3.72M | 2.80M | 3.03M |
| Net Income | 2.88M | 2.70M | 2.47M | 1.61M | 8.02M |
Balance Sheet | |||||
| Total Assets | 19.54M | 16.56M | 15.82M | 14.24M | 18.52M |
| Cash, Cash Equivalents and Short-Term Investments | 13.61M | 9.88M | 7.83M | 5.33M | 7.72M |
| Total Debt | 205.00K | 576.00K | 957.00K | 1.42M | 1.94M |
| Total Liabilities | 2.21M | 2.40M | 3.12M | 3.85M | 5.10M |
| Stockholders Equity | 17.33M | 14.15M | 12.70M | 10.39M | 13.41M |
Cash Flow | |||||
| Free Cash Flow | 3.34M | 3.34M | 2.66M | 2.40M | 1.22M |
| Operating Cash Flow | 3.40M | 3.40M | 2.74M | 2.63M | 1.38M |
| Investing Cash Flow | -2.04M | -2.04M | -4.87M | -15.00K | 338.00K |
| Financing Cash Flow | -1.39M | -1.39M | -311.00K | -5.01M | -2.33M |
Rave Restaurant Group Technical Analysis
Negative
3.11
Price Trends
2.89
Negative
3.01
Negative
2.95
Negative
Market Momentum
-0.19
Positive
28.53
Positive
49.38
Neutral
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 3.11 is above the 20-day moving average (MA) of 2.58, above the 50-day MA of 2.89, and above the 200-day MA of 2.95, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 28.53 is Positive, neither overbought nor oversold. The STOCH value of 49.38 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $32.54M | 11.46 | 17.95% | ― | 7.23% | 8.40% | |
67 Neutral | $87.36M | 12.64 | 9.84% | 1.32% | 6.14% | 53.60% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $15.73M | 7.01 | 6.62% | ― | -5.81% | 78.41% | |
46 Neutral | $82.76M | -3.41 | 50.91% | ― | 0.19% | 46.85% | |
41 Neutral | $16.59M | -5.08 | -9.79% | 5.09% | -9.48% | 77.31% |
* Consumer Cyclical Sector Average
RAVE
Rave Restaurant Group
2.24
-0.71
-24.07%
ARKR
Ark Restaurants
4.55
-2.71
-37.33%
BDL
Flanigan's Enterprises
46.39
15.45
49.95%
GTIM
Good Times Restaurants
1.49
-0.15
-9.15%
NDLS
Noodles & Co
13.81
8.66
168.26%
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.