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RAVE

RAVE Restaurant GroupNasdaqCM:RAVE Stock Report

Market Cap

US$19.8m

7D

-25.7%

1Y

15.0%

Updated

03 Dec, 2021

Data

Company Financials
RAVE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

RAVE Stock Overview

Rave 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.

RAVE Restaurant Group Competitors

Wingstop

NasdaqGS:WING

US$4.6b

Denny's

NasdaqCM:DENN

US$903.9m

Ruth's Hospitality Group

NasdaqGS:RUTH

US$616.4m

Chuy's Holdings

NasdaqGS:CHUY

US$558.6m

Price History & Performance

Summary of all time highs, changes and price drops for RAVE Restaurant Group
Historical stock prices
Current Share PriceUS$1.10
52 Week HighUS$2.09
52 Week LowUS$0.83
Beta0.76
1 Month Change-10.57%
3 Month Change-12.70%
1 Year Change15.00%
3 Year Change-14.06%
5 Year Change-50.67%
Change since IPO816.67%

Recent News & Updates

Nov 23
Here's Why RAVE Restaurant Group (NASDAQ:RAVE) Can Manage Its Debt Responsibly

Here's Why RAVE Restaurant Group (NASDAQ:RAVE) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

RAVEUS HospitalityUS Market
7D-25.7%-5.0%-2.7%
1Y15.0%-5.3%16.6%

Return vs Industry: RAVE exceeded the US Hospitality industry which returned -0.8% over the past year.

Return vs Market: RAVE underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is RAVE's price volatile compared to industry and market?
RAVE volatility
RAVE Average Weekly Movement8.3%
Hospitality Industry Average Movement6.9%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: RAVE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RAVE's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195823Brandon Solanohttps://www.raverg.com

Rave 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.

RAVE Restaurant Group Fundamentals Summary

How do RAVE Restaurant Group's earnings and revenue compare to its market cap?
RAVE fundamental statistics
Market CapUS$19.81m
Earnings (TTM)US$1.73m
Revenue (TTM)US$9.24m

11.5x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAVE income statement (TTM)
RevenueUS$9.24m
Cost of RevenueUS$3.02m
Gross ProfitUS$6.22m
ExpensesUS$4.50m
EarningsUS$1.73m

Last Reported Earnings

Sep 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.096
Gross Margin67.34%
Net Profit Margin18.71%
Debt/Equity Ratio28.1%

How did RAVE perform over the long term?

See historical performance and comparison

Valuation

Is RAVE Restaurant Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAVE ($1.1) is trading below our estimate of fair value ($5.11)

Significantly Below Fair Value: RAVE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAVE is good value based on its PE Ratio (11.5x) compared to the US Hospitality industry average (23.2x).

PE vs Market: RAVE is good value based on its PE Ratio (11.5x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAVE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RAVE's PB Ratio (3.3x) is in line with the US Hospitality industry average.


Future Growth

How is RAVE Restaurant Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

43.0%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RAVE Restaurant Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has RAVE Restaurant Group performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAVE has a large one-off gain of $549.0K impacting its September 26 2021 financial results.

Growing Profit Margin: RAVE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RAVE has become profitable over the past 5 years, growing earnings by 43.2% per year.

Accelerating Growth: RAVE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RAVE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (79.7%).


Return on Equity

High ROE: RAVE's Return on Equity (28.5%) is considered high.


Financial Health

How is RAVE Restaurant Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAVE's short term assets ($9.5M) exceed its short term liabilities ($3.9M).

Long Term Liabilities: RAVE's short term assets ($9.5M) exceed its long term liabilities ($2.6M).


Debt to Equity History and Analysis

Debt Level: RAVE has more cash than its total debt.

Reducing Debt: RAVE's debt to equity ratio has increased from 0.3% to 28.1% over the past 5 years.

Debt Coverage: RAVE's debt is well covered by operating cash flow (67.5%).

Interest Coverage: RAVE's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Dividend

What is RAVE Restaurant Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RAVE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RAVE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RAVE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RAVE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAVE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Brandon Solano (50 yo)

2.17yrs

Tenure

US$682,431

Compensation

Mr. Brandon L. Solano has been President and Secretary of RAVE Restaurant Group, Inc. since December 10, 2019 and has been its Chief Executive Officer since October 21, 2019. Mr. Solano served as Chief Mar...


CEO Compensation Analysis

Compensation vs Market: Brandon's total compensation ($USD682.43K) is about average for companies of similar size in the US market ($USD567.29K).

Compensation vs Earnings: Insufficient data to compare Brandon's compensation with company performance.


Leadership Team

Experienced Management: RAVE's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: RAVE's board of directors are seasoned and experienced ( 16.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RAVE Restaurant Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: RAVE Restaurant Group, Inc.
  • Ticker: RAVE
  • Exchange: NasdaqCM
  • Founded: 1958
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$19.805m
  • Shares outstanding: 18.00m
  • Website: https://www.raverg.com

Number of Employees


Location

  • RAVE Restaurant Group, Inc.
  • 3551 Plano Parkway
  • The Colony
  • Texas
  • 75056
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:56
End of Day Share Price2021/12/03 00:00
Earnings2021/09/26
Annual Earnings2021/06/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.