The company maintains robust profitability with operating margins reaching 29.7% in 2026Q3, though revenue growth remains inconsistent, fluctuating between a 6.0% gain and a 6.0% decline in recent periods.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 12.63M | 12.04M | 12.15M | 11.89M | 10.69M | 8.59M | 10.03M | 12.32M | 15.12M | 57.11M | 60.81M | 48.2M | 42.22M | 41.86M | 43M | 43.04M | 40.87M | 43.85M | 49.52M | 47.14M | 50.61M | 55.27M | 60.21M | 58.78M | 66.64M | 63.45M | 66.08M | 66M | 67.6M | 69M | 69.2M |
| Revenue Growth % | 3.2% | -0.91% | 2.2% | 11.18% | 24.44% | -14.31% | -18.6% | -18.5% | -73.53% | -6.08% | 26.17% | 14.15% | 0.87% | -2.65% | -0.08% | 5.3% | -6.79% | -11.45% | 5.05% | -6.86% | -8.43% | -8.21% | 2.43% | -11.79% | 5.03% | -3.98% | 0.12% | -2.37% | -2.03% | -0.29% | 11.61% |
| Cost of Goods Sold | 2.66M | 3.4M | 3.66M | 3.96M | 3.29M | 2.66M | 3.49M | 4.9M | 6.3M | 54.15M | 56.94M | 44.46M | 39.26M | 37.81M | 37.9M | 37.11M | 34.97M | 38.28M | 43.36M | 40.1M | 43.76M | 46.78M | 49.36M | 47.58M | 54.15M | 52.8M | 54.05M | 54.4M | 52.2M | 53M | 53.7M |
| COGS % of Revenue | - | 28.22% | 30.09% | 33.27% | 30.72% | 30.93% | 34.8% | 39.76% | 41.67% | 94.81% | 93.63% | 92.24% | 92.97% | 90.33% | 88.14% | 86.22% | 85.57% | 87.31% | 87.56% | 85.08% | 86.47% | 84.65% | 81.98% | 80.95% | 81.25% | 83.22% | 81.79% | 82.42% | 77.22% | 76.81% | 77.6% |
| Gross Profit | 6.75M | 8.64M | 8.49M | 7.93M | 7.41M | 5.93M | 6.54M | 7.42M | 8.82M | 2.96M | 3.87M | 3.74M | 2.97M | 4.05M | 5.1M | 5.93M | 5.9M | 5.56M | 6.16M | 7.04M | 6.85M | 8.48M | 10.85M | 11.2M | 12.5M | 10.65M | 12.04M | 11.6M | 15.4M | 16M | 15.5M |
| Gross Margin % | 53.44% | 71.78% | 69.91% | 66.73% | 69.28% | 69.07% | 65.2% | 60.24% | 58.33% | 5.19% | 6.37% | 7.76% | 7.03% | 9.67% | 11.86% | 13.78% | 14.43% | 12.69% | 12.44% | 14.92% | 13.53% | 15.35% | 18.02% | 19.05% | 18.75% | 16.78% | 18.21% | 17.58% | 22.78% | 23.19% | 22.4% |
| Gross Profit Growth % | - | 1.74% | 7.07% | 7.09% | 24.82% | -9.22% | -11.9% | -15.83% | 197.37% | -23.42% | 3.58% | 25.94% | -26.66% | -20.66% | -13.97% | 0.54% | 6.02% | -9.72% | -12.42% | 2.76% | -19.31% | -21.8% | -3.13% | -10.38% | 17.34% | -11.52% | 3.76% | -24.68% | -3.75% | 3.23% | 13.97% |
| Operating Expenses | 5.59M | 5.38M | 5.55M | 5.78M | 4.93M | 4.88M | 5.56M | 5.74M | 8.47M | 7.71M | 7.25M | 4.79M | 4.37M | 4.19M | 4.19M | 3.82M | 3.6M | 3.62M | 3.22M | 6.35M | 8.96M | 7.54M | 6.82M | 7.56M | 9.94M | 6.27M | 7.12M | 7.3M | 8.9M | 8.6M | 9M |
| OpEx % of Revenue | - | 44.65% | 45.72% | 48.59% | 46.1% | 56.76% | 55.4% | 46.59% | 56.04% | 13.5% | 11.92% | 9.94% | 10.36% | 10.02% | 9.74% | 8.89% | 8.82% | 8.26% | 6.5% | 13.48% | 17.7% | 13.63% | 11.32% | 12.86% | 14.92% | 9.88% | 10.77% | 11.06% | 13.17% | 12.46% | 13.01% |
| Selling, General & Admin | 5.55M | 5.21M | 5.27M | 5.49M | 5.45M | 4.71M | 5.56M | 5.27M | 7.6M | 7.71M | 7.25M | 4.79M | 4.37M | 4.19M | 4.09M | 3.74M | 3.45M | 3.29M | 3.49M | 6.73M | 8.96M | 7.54M | 6.82M | 7.56M | 9.94M | 6.27M | 5.91M | 6.4M | 8M | 7.9M | 8.4M |
| SG&A % of Revenue | - | 43.32% | 43.35% | 46.18% | 50.93% | 54.81% | 55.4% | 42.81% | 50.26% | 13.5% | 11.92% | 9.94% | 10.36% | 10.02% | 9.52% | 8.69% | 8.44% | 7.49% | 7.06% | 14.28% | 17.7% | 13.63% | 11.32% | 12.86% | 14.92% | 9.88% | 8.94% | 9.7% | 11.83% | 11.45% | 12.14% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 46K | 161K | 288K | 287K | -517K | 167K | 0 | 466K | 4.92M | 0 | 0 | 0 | 0 | 0 | 95K | 85K | 155K | 338K | -275K | -379K | 0 | 0 | 0 | 0 | 0 | 0 | 1.21M | 900K | 900K | 700K | 600K |
| Operating Income | 3.58M | 3.27M | 2.94M | 2.16M | 2.48M | 1.06M | 982K | 1.68M | 350K | -4.75M | -3.38M | -1.05M | -1.41M | -146K | 912K | 2.1M | 2.29M | 1.94M | 2.94M | 683K | -2.11M | 949K | 4.03M | 3.64M | 2.56M | 4.38M | 4.92M | 4.3M | 6.5M | 7.4M | 6.5M |
| Operating Margin % | 28.34% | 27.13% | 24.19% | 18.13% | 23.18% | 12.31% | 9.79% | 13.65% | 2.32% | -8.31% | -5.55% | -2.19% | -3.33% | -0.35% | 2.12% | 4.89% | 5.61% | 4.42% | 5.94% | 1.45% | -4.17% | 1.72% | 6.7% | 6.19% | 3.83% | 6.9% | 7.44% | 6.52% | 9.62% | 10.72% | 9.39% |
| Operating Income Growth % | - | 11.13% | 36.32% | -13.03% | 134.31% | 7.74% | -41.58% | 380.29% | 107.38% | -40.59% | -220.21% | 24.98% | -862.33% | -116.01% | -56.67% | -8.2% | 18.26% | -34.09% | 330.75% | 132.34% | -322.55% | -76.46% | 10.86% | 42.35% | -41.68% | -10.88% | 14.33% | -33.85% | -12.16% | 13.85% | 18.18% |
| EBITDA | 3.98M | 3.8M | 3.57M | 2.81M | 3.09M | 1.79M | 1.17M | 2.15M | 1.22M | -2.29M | -653K | 563K | 49K | 1.16M | 1.86M | 2.96M | 2.65M | 2.23M | 3.28M | 1.38M | -898K | 2.09M | 5.17M | 5.04M | 3.89M | 5.72M | 6.13M | 5.2M | 7.4M | 8.1M | 7.1M |
| EBITDA Margin % | 31.49% | 31.56% | 29.37% | 23.61% | 28.87% | 20.88% | 11.65% | 17.43% | 8.1% | -4.01% | -1.07% | 1.17% | 0.12% | 2.77% | 4.32% | 6.87% | 6.48% | 5.08% | 6.63% | 2.92% | -1.77% | 3.79% | 8.58% | 8.57% | 5.84% | 9.02% | 9.27% | 7.88% | 10.95% | 11.74% | 10.26% |
| EBITDA Growth % | 4.27% | 6.5% | 27.11% | -9.07% | 72.07% | 53.6% | -45.6% | 75.41% | 153.47% | -250.54% | -215.99% | 1048.98% | -95.77% | -37.67% | -37.14% | 11.55% | 18.89% | -32.13% | 138.84% | 253.12% | -142.93% | -59.5% | 2.48% | 29.5% | -32.01% | -6.56% | 17.81% | -29.73% | -8.64% | 14.08% | 18.33% |
| D&A (Non-Cash Add-back) | 398K | 534K | 629K | 651K | 608K | 736K | 186K | 466K | 874K | 2.46M | 2.72M | 1.62M | 1.45M | 1.3M | 946K | 851K | 357K | 290K | 342K | 692K | 1.21M | 1.14M | 1.13M | 1.4M | 1.34M | 1.34M | 1.21M | 900K | 900K | 700K | 600K |
| EBIT | 2.92M | 3.27M | 2.94M | 2.16M | 2.43M | 1.58M | 796K | -697K | -115K | -11.08M | -5.83M | -2.23M | -2.07M | -1.34M | 912K | 2.1M | 2.29M | 1.94M | 2.99M | 683K | -2.26M | 949K | 4.26M | 5.43M | 2.56M | 4.38M | 4.92M | 4.3M | 6.5M | 7.5M | 6.7M |
| Net Interest Income | 283K | 354K | 153K | -1K | -40K | -81K | -55K | -57K | -183K | -90K | -4K | -113K | -142K | -244K | -110K | -65K | -62K | -57K | -46K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 381K | 0 | 153K | 0 | 21K | 11K | 40K | 47K | 0 | 16K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | -354K | 0 | 1K | 61K | 92K | 95K | 104K | 183K | 106K | 4K | 113K | 142K | 244K | 110K | 65K | 62K | 57K | 46K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 392K | 354K | 153K | -6K | -114K | 433K | -1.14M | -2.48M | -1.4M | -7.35M | -1.7M | -1.29M | -395K | -1.5M | -110K | -65K | -62K | -57K | 0 | -477K | -4.76M | -590K | -613K | -789K | -832K | -460K | -527K | -200K | 500K | -700K | -600K |
| Pretax Income | 3.97M | 3.62M | 3.09M | 2.15M | 2.37M | 1.49M | -155K | -801K | -1.05M | -12.11M | -6.06M | -2.34M | -2.21M | -1.65M | 802K | 2.04M | 2.23M | 1.88M | 2.94M | 206K | -7.02M | 359K | 3.65M | 4.64M | 1.72M | 3.92M | 4.39M | 4.1M | 7M | 6.8M | 5.9M |
| Pretax Margin % | 31.44% | 30.07% | 25.45% | 18.08% | 22.12% | 17.35% | -1.55% | -6.5% | -6.93% | -21.21% | -9.97% | -4.86% | -5.24% | -3.93% | 1.87% | 4.74% | 5.46% | 4.29% | 5.94% | 0.44% | -13.87% | 0.65% | 6.06% | 7.9% | 2.59% | 6.18% | 6.64% | 6.21% | 10.36% | 9.86% | 8.53% |
| Income Tax | 1.04M | 918K | 619K | 537K | -5.66M | -29K | 4.08M | -51K | -3.32M | 53K | 2.71M | -670K | -760K | -526K | 419K | 621K | 786K | 531K | -99K | 0 | -1.03M | 155K | 1.41M | 1.55M | 586K | 1.44M | 1.5M | 1.3M | 2.1M | 2.3M | 2M |
| Effective Tax Rate % | 26.26% | 25.36% | 20.02% | 24.98% | -239.2% | -1.95% | -2630.97% | 6.37% | 316.98% | -0.44% | -44.76% | 28.62% | 34.33% | 31.94% | 52.24% | 30.44% | 35.23% | 28.21% | -3.37% | 0% | 14.66% | 43.18% | 38.51% | 33.38% | 34.01% | 36.75% | 34.29% | 31.71% | 30% | 33.82% | 33.9% |
| Net Income | 2.93M | 2.7M | 2.47M | 1.61M | 8.02M | 1.52M | -4.23M | -750K | 1.91M | -12.49M | -8.89M | -1.84M | -1.57M | -1.26M | 322K | 1.36M | 1.16M | 1.17M | 2.83M | 206K | -5.99M | 204K | 2.24M | 3.09M | 1.14M | 2.48M | 2.88M | 2.8M | 4.9M | 4.5M | 3.9M |
| Net Margin % | 23.19% | 22.44% | 20.35% | 13.57% | 75.02% | 17.69% | -42.21% | -6.09% | 12.65% | -21.87% | -14.61% | -3.82% | -3.71% | -3.01% | 0.75% | 3.15% | 2.85% | 2.67% | 5.71% | 0.44% | -11.83% | 0.37% | 3.73% | 5.26% | 1.71% | 3.91% | 4.36% | 4.24% | 7.25% | 6.52% | 5.64% |
| Net Income Growth % | 7.09% | 9.26% | 53.32% | -79.89% | 427.76% | 135.91% | -464.4% | -139.23% | 115.31% | -40.57% | -383.2% | -17.36% | -24.27% | -491.61% | -76.27% | 16.58% | -0.68% | -58.51% | 1271.36% | 103.44% | -3035.78% | -90.91% | -27.48% | 172.03% | -54.15% | -14.01% | 3% | -42.86% | 8.89% | 15.38% | 21.88% |
| Net Income (Continuing) | 2.93M | 2.7M | 2.47M | 1.61M | 8.02M | 1.52M | -4.23M | -750K | 2.27M | -11.24M | -8.49M | -1.67M | -1.45M | -1.12M | 383K | 1.42M | 1.45M | 1.35M | 3.04M | 206K | -5.99M | 204K | 2.24M | 3.09M | 1.14M | 2.48M | 2.88M | 2.8M | 4.9M | 4.5M | 3.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.20 | 0.19 | 0.17 | 0.10 | 0.45 | 0.09 | -0.28 | -0.05 | 0.13 | -1.09 | -0.77 | -0.17 | -0.16 | -0.14 | 0.04 | 0.16 | 0.14 | 0.13 | 0.27 | 0.02 | -0.55 | 0.02 | 0.20 | 0.29 | 0.10 | 0.21 | 0.23 | 0.21 | 0.33 | 0.31 | 0.26 |
| EPS Growth % | 13.07% | 11.76% | 70% | -77.78% | 414.29% | 131.25% | -462.25% | -138.31% | 111.93% | -41.56% | -352.94% | -6.25% | -14.29% | -477.36% | -76.81% | 14.29% | 7.69% | -51.85% | 1359.46% | 103.36% | -3072.97% | -90.75% | -31.03% | 190% | -52.38% | -8.7% | 9.52% | -36.36% | 6.45% | 19.23% | 30% |
| EPS (Basic) | - | 0.19 | 0.17 | 0.11 | 0.45 | 0.09 | -0.28 | -0.05 | 0.13 | -1.09 | -0.80 | -0.17 | -0.17 | -0.15 | 0.04 | 0.16 | 0.14 | 0.13 | 0.27 | 0.02 | -0.55 | 0.02 | 0.20 | 0.29 | 0.10 | 0.21 | 0.23 | 0.22 | 0.35 | 0.32 | 0.28 |
| Diluted Shares Outstanding | 14.3M | 14.56M | 14.63M | 15.91M | 17.99M | 18.11M | 15.14M | 15.07M | 14.98M | 11.45M | 11.6M | 11.12M | 9.9M | 8.96M | 8.84M | 8.65M | 8.64M | 9.26M | 10.56M | 10.95M | 10.92M | 10.94M | 11M | 10.76M | 10.89M | 11.48M | 12.34M | 13.13M | 14.68M | 14.71M | 15.03M |
| Basic Shares Outstanding | 14.21M | 14.5M | 14.45M | 15.32M | 17.99M | 17.31M | 15.14M | 15.07M | 14.41M | 11.45M | 11.13M | 10.51M | 9.32M | 8.66M | 8.65M | 8.64M | 8.64M | 9.26M | 10.53M | 10.94M | 10.92M | 10.9M | 11M | 10.76M | 10.89M | 11.47M | 12.21M | 12.59M | 13.91M | 13.87M | 14.02M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 50.12% | 97.05% | 75% | 46.94% | - | - |
Stagnant Legacy Brand Growth
As indicated by recent quarterly filings, RAVE's top-line performance remains inconsistent, with revenue growth fluctuating between a 6.0% increase in 2026Q2 and a 6.0% contraction in 2025Q4, suggesting that the company struggles to maintain a stable organic growth trajectory across its diverse franchise and company-owned segments.
The lack of sustained revenue momentum implies that the company's core Pizza Inn brand may be facing significant headwinds in its legacy markets. Investors should monitor whether the shift toward the 'Express' kiosk model can eventually offset the stagnation observed in traditional dine-in unit performance.
According to historical income statements, RAVE maintains robust gross margins that frequently exceed 70%, a figure that appears to be driven by the company's capital-light franchise royalty model rather than the more labor-intensive and lower-margin operations of its company-owned restaurant locations.
This high margin profile suggests a strong degree of pricing power within its niche, rural-focused footprint. However, any strategic pivot toward increasing the number of company-owned units would likely result in a permanent contraction of these margins due to the inherent costs of direct food service operations.
Based on reported financial figures, RAVE has demonstrated significant operating leverage, with operating margins reaching as high as 35.6% in 2025Q4, which suggests that the corporate overhead is well-contained relative to the revenue generated by the underlying franchise network and its associated royalty streams.
The ability to scale operating income without a proportional increase in SG&A expenses indicates a lean management structure. Analysts should investigate whether this efficiency is sustainable or if it reflects a temporary deferral of necessary investments in brand revitalization and marketing.
As noted in recent quarterly data, RAVE's net income is periodically impacted by stock-based compensation expenses, which reached $111.0K in 2026Q3, suggesting that reported earnings may slightly overstate the cash-generative capacity of the business when these non-cash equity incentives are fully accounted for in the bottom line.
While the net margins remain healthy, the presence of recurring stock-based compensation warrants careful scrutiny to ensure that management incentives are aligned with long-term shareholder value. Investors should distinguish between these accounting-driven fluctuations and the underlying operational performance of the franchise business.
Quick answers to the most common questions about buying RAVE stock.
For fiscal year 2025, RAVE Restaurant Group, Inc. (RAVE) reported total revenue of $12.0M. This represents a 82.6% decline compared to $69.2M in 1996.
RAVE Restaurant Group, Inc. (RAVE) is profitable, generating $2.7M in net income for the fiscal year ending 2025 with a net profit margin of 22.4%.
RAVE Restaurant Group, Inc. (RAVE) reported an operating income of $3.3M, resulting in an operating profit margin of 27.1%. This margin reflects the operational efficiency of the business before interest and taxes.
RAVE Restaurant Group, Inc. (RAVE) generated $8.6M in gross profit for the year, representing a gross profit margin of 71.8%. This demonstrates the company's core pricing power and production efficiency.