Zacks Investment Research·5 days ago
2 Food For Thought Microcaps with Outperform RatingsRAVE and BOF offer upside potential.
RAVE Restaurant Group, Inc.(RAVE)Earnings, Financials & Key Ratios
RAVE•NASDAQ
$3.30
17.4× P/E·Price updated Jul 7, 2026
AboutRave 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.Show more
- Revenue$12M-0.9%
- EBITDA$4M+6.5%
- Net Income$3M+9.3%
- EPS (Diluted)0.19+11.8%
- Gross Margin71.78%+2.7%
- EBITDA Margin31.56%+7.5%
- Operating Margin27.13%+12.2%
- Net Margin22.44%+10.3%
- ROE20.12%-6.0%
RAVE Price & Volume
RAVE Restaurant Group, Inc. (RAVE) stock price & volume — 10-year historical chart
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Asset-Light Transition Drives Robust Operating Margin Expansion
Investment Thesis • Updated 2026Q3
VerdictNeutral: While the company has achieved a healthy balance sheet with a 8.63 current ratio and improved operating margins
Growth:Mixed
Profitability:Strong
Financial:Healthy
Cash Flow:Robust
Primary Risk:Stagnant Legacy Brand Growth
Key Thesis Takeaways
- RAVE Restaurant Group is successfully pivoting toward a capital-light franchise model, evidenced by a significant reduction in net PPE from $1.2M in 2024Q2 to $378.0K in 2026Q3.
- While top-line growth remains volatile with recent quarterly fluctuations between a 6.0% increase and a 6.0% contraction, the company's focus on high-margin royalty streams has bolstered operating margins to 29.7% as of 2026Q3.
- Investors should monitor the sustainability of this earnings quality, as stock-based compensation of $111.0K in 2026Q3 may periodically mask the underlying cash-generative capacity of the business.
Verdict Logic
the inconsistent revenue growth and reliance on non-cash equity incentives warrant a cautious approach until top-line stability is proven.
RAVE Growth Metrics
RAVE Restaurant Group, Inc. (RAVE) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-12.95%
5 Years3.72%
3 Years4.03%
TTM3.2%
Profit CAGR
10 Years-
5 Years-
3 Years-30.42%
TTM7.09%
EPS CAGR
10 Years-
5 Years-
3 Years-24.98%
TTM13.07%
Return on Capital
10 Years5.23%
5 Years18.93%
3 Years20.39%
Last Year22.83%
RAVE Recent Earnings
RAVE Restaurant Group, Inc. (RAVE) EPS & revenue vs analyst estimates — last 4 quarters
Q2 2026Latest
May 7, 2026Metric
Actual
Est
EPS
$0.06
—
Rev
$3M
—
Q1 2026
Feb 5, 2026Metric
Actual
Est
EPS
$0.04
—
Rev
$3M
—
Q4 2025
Nov 6, 2025Metric
Actual
Est
EPS
$0.05
—
Rev
$3M
—
Q4 2025
Sep 25, 2025Metric
Actual
Est
EPS
$0.06
—
Rev
$3M
—
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 7, 2026 | $0.06 | $3M |
| Q1 2026 | Feb 5, 2026 | $0.04 | $3M |
| Q4 2025 | Nov 6, 2025 | $0.05 | $3M |
| Q4 2025 | Sep 25, 2025 | $0.06 | $3M |
Based on last 12 quarters of dataView full earnings history →
Latest RAVE News
Recent stock market news and headlines for RAVE Restaurant Group, Inc. (RAVE)
Peers Comparison
Key metrics vs top competitors for RAVE Restaurant Group, Inc. (RAVE)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $3.30 | $46.9M | 17.37 | -0.91% | 22.44% | 20.12% | — | |
| $6.25 | $321.87M | 15.24 | -2.5% | 2.24% | — | — | |
| $187.03 | $12.29B | 30.66 | 9.39% | 6.85% | 27.87% | — | |
| $6.60 | $122.1M | -5.04 | -3.07% | -2.23% | — | — | |
| $101.02 | $413.62M | 20.83 | 9.37% | 12.35% | — | — | |
| $5.60 | $20.19M | -1.76 | -9.69% | -3.97% | -19.23% | — |
Compare RAVE vs Peers
RAVE Restaurant Group, Inc. (RAVE) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
RAVE SEC Filings & Documents
RAVE Restaurant Group, Inc. (RAVE) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 7, 2026·SEC
Material company update
Feb 17, 2026·SEC
Material company update
Feb 5, 2026·SEC
10-K Annual Reports
410-Q Quarterly Reports
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RAVE Frequently Asked Questions
RAVE Restaurant Group, Inc. (RAVE) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is RAVE Restaurant Group, Inc.'s revenue?
RAVE Restaurant Group, Inc. (RAVE) reported $12.6M in revenue for fiscal year 2025. This represents a 82% decrease from $69.2M in 1996.
How fast is RAVE Restaurant Group, Inc. growing?
RAVE Restaurant Group, Inc. (RAVE) saw revenue decline by 0.9% over the past year.
Is RAVE profitable?
Yes, RAVE Restaurant Group, Inc. (RAVE) is profitable, generating $2.9M in net income for fiscal year 2025 (22.4% net margin).
Dividend & Returns
What is RAVE's return on equity?
RAVE Restaurant Group, Inc. (RAVE) has a return on equity (ROE) of 20.1%. This is excellent, indicating efficient use of shareholder capital.
What is RAVE Restaurant Group, Inc.'s free cash flow?
RAVE Restaurant Group, Inc. (RAVE) generated $3.2M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.