RAVE Restaurant Group, Inc. (RAVE) AI Stock Analysis
RAVE AI stock analysis summary
AI ResearchRAVE Restaurant Group, Inc. operates and franchises pizza concepts, including Pizza Inn and Pie Five Pizza Company. In FY2026, revenue increased 7.2% to $12.9M while net income reached $2.9M with a 22.3% net margin. The company holds a net cash position of $13.4M against total debt of just $205,000.
- Market cap
- $31.0M
- Revenue (TTM)
- $12.9M
- P/E
- 10.9x fwd 100.0x
- 1Y return
- -20.7% S&P 500 16.8%
- Avg. target
- $2.50 14.7% vs last close
Bull case
- RAVE maintains a robust liquidity profile with $13.4M in net cash and a current ratio of 9.31 as of June 30, 2026.
- The company expanded its gross margin to 72.6% in FY2026, generating $3.3M in annual free cash flow.
- Its trailing P/E of 10.9x and EV/EBITDA of 7.1x trade at discounts to the median of its US-listed Consumer Cyclical peers at 18.0x and 11.1x.
Bear case
- Quarterly earnings fell 16.1% year-over-year in the quarter ended June 30, 2026.
- RAVE shares have dropped 33.9% year-to-date and sit 25.3% below their 200-day moving average.
- The stock's forward P/E of 100.0x is significantly higher than its trailing multiple of 10.9x and the peer median of 14.1x.
What RAVE Restaurant does
Rave Restaurant Group, Inc., and its subsidiaries, operate and franchise pizza dining concepts under the Pizza Inn and Pie Five Pizza Company brands. Its business operates across three segments: Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants. Pizza Inn locations operate as buffet-style restaurants offering dine-in, carryout, catering, and delivery services, alongside delivery and carryout focused delco units and Express locations in high-traffic hubs like airports and campuses. Through Pie Five, the company expands into fast-casual dining focused on personal pizza customization.
Growth and profitability
Between FY2021 and FY2026, RAVE grew revenue at a 5-year CAGR of 8.5%. Annual revenue expanded from $10.7M in FY2022 to $12.9M in FY2026, following a 0.9% dip in FY2025 and a 7.2% rebound in FY2026. Gross margin rose to 72.6% in FY2026 from 69.3% in FY2022, while operating margin expanded from 23.2% to 26.9%. Net income was $2.9M in FY2026 with diluted EPS of $0.21, compared to $2.7M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 8.8% year-over-year, while quarterly earnings declined 16.1%.
Balance sheet and cash flow
As of June 30, 2026, RAVE held $13.6M in cash and short-term investments and total debt of $205,000, yielding net cash of $13.4M. Shareholders' equity stood at $17.3M, supported by a debt-to-equity ratio of 0.01 and a current ratio of 9.31. In FY2026, the company generated $3.4M in operating cash flow and $3.3M in free cash flow, with capital expenditures of $56,000. Over five years, RAVE reduced its share count by 23.9%.
Valuation and performance
RAVE trades at a trailing P/E of 10.9x and an EV/EBITDA of 7.1x, below the median of its US-listed Consumer Cyclical peers of 18.0x and 11.1x, respectively. Its price-to-sales ratio of 2.4x sits above the peer median of 0.7x, while its forward P/E is 100.0x compared to the peer median of 14.1x. Over the past year, the stock fell 20.7%, trailing the S&P 500 (SPY) return of 16.8%, and trades 25.3% below its 200-day moving average.
What analysts expect
Wall Street coverage for RAVE shows a mean price target of $2.50, representing an upside of 14.7% from the last close of $2.18 on October 16, 2026. The company is scheduled to report its next earnings results on November 5, 2026. Institutional investors hold 37.4% of shares, insiders hold 6.0%, and short interest accounts for 0.4% of the float.
Key risks and what to watch
- Quarterly earnings declined 16.1% in the latest quarter despite revenue rising 8.8%.
- The stock remains volatile, declining 20.7% over the past year while the S&P 500 gained 16.8%.
- A forward P/E multiple of 100.0x indicates an anticipated drop in earnings relative to its current $0.20 TTM EPS.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RAVE AI stock analysis
This page is an AI-written research summary of RAVE Restaurant Group, Inc. (RAVE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RAVE income statement, RAVE balance sheet, RAVE key metrics, RAVE chart. See the RAVE stock overview for the latest quote and news.
RAVE AI stock analysis FAQ
What was RAVE's revenue in FY2026?
In FY2026, RAVE reported revenue of $12.9M, representing a 7.2% increase compared to $12.0M in FY2025.
How much debt does RAVE carry?
As of June 30, 2026, RAVE held $205,000 in total debt alongside $13.6M in cash and short-term investments, resulting in net cash of $13.4M.
Does RAVE pay a dividend?
There is no dividend information reported for RAVE, but the company generated $3.3M in free cash flow in FY2026 and reduced its share count by 23.9% over five years.
What is the analyst price target for RAVE?
Analysts have a mean price target of $2.50 for RAVE, which implies a 14.7% premium over its last close of $2.18 on October 16, 2026.