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Rave Restaurant Group (RAVE)
NASDAQ:RAVE
US Market

Rave Restaurant Group (RAVE) AI Stock Analysis

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Rave Restaurant Group

(NASDAQ:RAVE)

73Outperform
Rave Restaurant Group scores strongly in financial performance, highlighting robust revenue growth and profitability. Technical analysis suggests positive momentum, although the stock may be overbought. Valuation is moderate, with a reasonable P/E ratio but no dividend appeal.

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

Rave Restaurant Group Business Overview & Revenue Model

Company DescriptionRave Restaurant Group (RAVE) is a publicly traded company that operates in the restaurant industry, primarily focusing on the pizza segment. The company owns, operates, and franchises a portfolio of pizza brands, including Pizza Inn and Pie Five Pizza. RAVE is committed to delivering delicious, high-quality pizza experiences to its customers through its network of brick-and-mortar locations and innovative dining concepts.
How the Company Makes MoneyRave Restaurant Group generates revenue through a combination of company-owned restaurant sales and franchise operations. The company earns money from the sales at its company-owned Pizza Inn and Pie Five Pizza locations, as well as collecting franchise fees and ongoing royalties from franchised restaurants. Additional revenue streams include supply chain services for franchisees, which involve providing ingredients and other necessary products to ensure consistency and quality across all locations. RAVE's earnings are further supported by its strategic partnerships and marketing initiatives aimed at expanding its brand presence and attracting new franchisees.

Rave Restaurant Group Financial Statement Overview

Summary
Rave Restaurant Group shows strong revenue growth and profitability, supported by efficient cost and cash flow management. The balance sheet reflects low financial leverage and high equity, although limited asset expansion should be monitored.
Income Statement
85
Very Positive
Rave Restaurant Group has demonstrated strong revenue growth with a robust increase from $8.59 million in 2021 to $12.24 million in the TTM. Gross profit and net income margins are impressive, with gross profit margin consistently above 70% and the TTM net profit margin at approximately 21.8%. This indicates efficient cost management and profitability. There is notable EBIT and EBITDA margin improvement, reflecting operational efficiency.
Balance Sheet
80
Positive
The balance sheet is solid with a declining debt-to-equity ratio, currently at a low 0.055 in the TTM, indicating low financial leverage. The equity ratio is strong, showing a healthy balance of equity to assets. Return on equity is robust, driven by increasing net income. However, the declining total assets may suggest limited asset expansion.
Cash Flow
75
Positive
Operating cash flow has shown consistent growth, supporting business operations effectively. The free cash flow is positive and growing, indicating strong cash management. The operating cash flow to net income ratio is favorable, suggesting good cash generation from profits. However, large negative investing cash flows could indicate significant capital expenditures or investments.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
12.24M12.15M11.89M10.69M8.59M9.99M
Gross Profit
8.71M8.49M7.93M7.41M5.93M6.50M
EBIT
4.12M3.16M1.08M2.48M1.06M849.00K
EBITDA
3.76M3.72M2.81M3.03M2.32M597.00K
Net Income Common Stockholders
2.67M2.47M1.61M8.02M1.52M-4.23M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.92M7.83M5.33M7.72M8.33M2.97M
Total Assets
16.11M15.82M14.24M18.52M13.35M9.71M
Total Debt
764.00K957.00K1.42M1.94M4.20M6.31M
Net Debt
-2.11M-1.93M-3.91M-5.78M-4.13M3.34M
Total Liabilities
2.34M3.12M3.85M5.10M7.61M9.20M
Stockholders Equity
13.78M12.70M10.39M13.41M5.73M503.00K
Cash FlowFree Cash Flow
3.57M2.66M2.40M1.22M1.20M-416.00K
Operating Cash Flow
3.65M2.74M2.63M1.38M1.49M-360.00K
Investing Cash Flow
-5.90M-4.87M-15.00K338.00K-238.00K67.00K
Financing Cash Flow
-182.00K-311.00K-5.01M-2.33M3.88M999.00K

Rave Restaurant Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.92
Price Trends
50DMA
2.64
Positive
100DMA
2.77
Positive
200DMA
2.34
Positive
Market Momentum
MACD
0.10
Negative
RSI
56.01
Neutral
STOCH
50.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAVE, the sentiment is Positive. The current price of 2.92 is above the 20-day moving average (MA) of 2.79, above the 50-day MA of 2.64, and above the 200-day MA of 2.34, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAVE.

Rave Restaurant Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
YUYUM
75
Outperform
$43.74B30.05-19.43%1.76%6.68%-7.09%
74
Outperform
$2.42B14.6441.18%2.27%4.13%56.76%
73
Outperform
$44.66M16.1121.44%2.83%37.01%
67
Neutral
$1.51B18.24-20.16%4.18%-3.57%2.31%
63
Neutral
$769.01M46.254.54%1.81%-15.53%
DPDPZ
62
Neutral
$15.05B26.28-14.74%1.38%5.07%13.74%
59
Neutral
$12.50B10.402.26%3.63%1.65%-18.81%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAVE
Rave Restaurant Group
2.92
1.15
64.97%
BJRI
BJ's Restaurants
31.53
-3.52
-10.04%
DPZ
Domino's Pizza
428.67
-10.65
-2.42%
PZZA
Papa John's International
43.02
-23.27
-35.10%
CAKE
Cheesecake Factory
44.87
9.82
28.02%
YUM
Yum! Brands
153.42
18.90
14.05%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.