NasdaqCM:RAVE

Stock Analysis Report

Executive Summary

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.

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($21M)



Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has RAVE Restaurant Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAVE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.1%

RAVE

2.5%

US Hospitality

1.5%

US Market


1 Year Return

23.6%

RAVE

8.1%

US Hospitality

20.1%

US Market

Return vs Industry: RAVE exceeded the US Hospitality industry which returned 8.1% over the past year.

Return vs Market: RAVE exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

RAVEIndustryMarket
7 Day-16.1%2.5%1.5%
30 Day-15.0%-4.9%1.4%
90 Day-31.7%5.7%8.7%
1 Year23.6%23.6%10.9%8.1%22.7%20.1%
3 Year-42.1%-42.1%36.0%27.0%50.1%40.5%
5 Year-89.1%-89.1%46.2%30.6%73.1%54.1%

Price Volatility Vs. Market

How volatile is RAVE Restaurant Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

4.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RAVE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RAVE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RAVE is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: RAVE is unprofitable, so we can't compare its PE Ratio to the US market.


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 is overvalued based on its PB Ratio (4.4x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

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

16.8%

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.


Next Steps

Past Performance

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

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAVE is currently unprofitable.

Growing Profit Margin: RAVE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAVE is unprofitable, but has reduced losses over the past 5 years at a rate of 26.5% per year.

Accelerating Growth: Unable to compare RAVE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RAVE is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-9.8%).


Return on Equity

High ROE: RAVE has a negative Return on Equity (-17.99%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RAVE Restaurant Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAVE's short term assets ($4.1M) exceed its short term liabilities ($2.4M).

Long Term Liabilities: RAVE's short term assets ($4.1M) do not cover its long term liabilities ($5.9M).


Debt to Equity History and Analysis

Debt Level: RAVE's debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RAVE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: RAVE has a high level of physical assets or inventory.

Debt Coverage by Assets: RAVE's debt is covered by short term assets (assets are 2.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if RAVE has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RAVE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

0.3yrs

Average management tenure


CEO

Brandon Solano (48yo)

0.3yrs

Tenure

0

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Brandon Solano
President0.3yrsno data0.086% $17.7k
Clinton Fendley
Vice President of Finance0.08yrsno datano data
Michael Burns
Chief Operating Officer0.3yrsno datano data
Douglas Kwong
Vice President of Marketing0.3yrsno datano data
Christina Coy
Vice President of Marketing of Pie Five Pizza Co.5.3yrsno datano data
Scott Black
Vice President of Operations at Pie Five0yrsno datano data
Deborah Lanning
Assistant Controller0yrsno datano data

0.3yrs

Average Tenure

47yo

Average Age

Experienced Management: RAVE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ramon Phillips
Independent Vice Chairman of the Board0yrsUS$25.75k0.11% $23.0k
William Hammett
Independent Director12.2yrsUS$23.50k0.099% $20.4k
Mark Schwarz
Chairman16yrsUS$30.75k0.67% $136.9k
Clinton Coleman
Independent Director12.5yrsUS$22.00k0.70% $145.1k
Robert Page
Independent Director16yrsUS$24.25kno data
Brian Bares
Independent Director2.3yrsUS$23.50k9.18% $1.9m

12.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: RAVE's board of directors are seasoned and experienced ( 12.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RAVE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

RAVE Restaurant Group, Inc.'s company bio, 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$20.580m
  • Shares outstanding: 15.13m
  • Website: https://www.raverg.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAVENasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 1991
PZ1DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1991

Biography

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. It operates in Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants segments. 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 that 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 that are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. Rave Restaurant Group, Inc. also operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademark. As of September 30, 2019, it owned, operated, and franchised/licensed 261 Pie Five Pizza Co. and Pizza Inn restaurants, and Pizza Inn Express kiosks in the United States and internationally. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:50
End of Day Share Price2020/02/14 00:00
Earnings2019/12/29
Annual Earnings2019/06/30


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.