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1. Company Snapshot

1.a. Company Description

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.


Its delco restaurants provide delivery and carryout services and 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 and are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities.In addition, it operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks.


As of June 27, 2021, the company had 33 franchised Pie Five Units, 156 franchised Pizza Inn restaurants, and 11 licensed Pizza Inn Express, or PIE, kiosks.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.

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1.b. Last Insights on RAVE

RAVE Restaurant Group's recent performance was hindered by underwhelming results from its Pie Five segment, which struggled to regain momentum despite Pizza Inn's steady sales growth. The company's second-quarter fiscal 2025 revenue growth was driven by Pizza Inn's resilience, but this was not enough to offset the challenges faced by Pie Five. Furthermore, the company's inability to effectively address the decline in Pie Five's sales has raised concerns about its ability to execute on its growth strategy.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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RAVE Restaurant Stock Gains Post Strong Q1 Earnings and Sales

Nov -13

Source: zacks.com

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RAVE Restaurant Group, Inc. Reports First Quarter 2026 Results

Nov -06

Source: globenewswire.com

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Rave Restaurant Stock Declines on Flat Q4 Earnings and Weak Sales

Oct -03

Source: zacks.com

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RAVE Restaurant Group, Inc. Reports Fourth Quarter and Fiscal Year End 2025 Financial Results

Sep -25

Source: globenewswire.com

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RAVE Upgraded to Outperform Amid Profitability Streak & Capital Strength

Jun -02

Source: zacks.com

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RAVE Restaurant Stock Rises on Strong Q3 Earnings and Store Reimages

May -12

Source: zacks.com

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RAVE Restaurant Group, Inc. Reports Third Quarter 2025 Results

May -08

Source: globenewswire.com

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RAVE Restaurant Stock Rises Post-Earnings Amid Mixed Segment Results

Feb -10

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.45%)

6. Segments

Pizza Inn Franchising

Expected Growth: 4.5%

Growing demand for convenient, affordable dining options and increasing popularity of franchise business models drive growth in the pizza industry, with Pizza Inn's franchise model offering entrepreneurs a proven system for success.

Pie Five Franchising

Expected Growth: 10.2%

Growing demand for fast-casual dining, increasing popularity of customizable pizzas, and Pie Five's innovative 5-minute cooking concept drive growth in the fast-casual pizza market.

Corporate Administration and Other

Expected Growth: 4.5%

The Corporate Administration and Other segment is expected to grow driven by increasing demand for administrative support functions, expansion of restaurant chains, and investments in digital transformation.

7. Detailed Products

Pie Five Pizza

A fast-casual pizza chain offering customizable pizzas cooked in a brick oven

Pieology

A fast-casual pizza chain offering customizable pizzas with a focus on fresh and high-quality ingredients

Mojo Pizza

A fast-casual pizza chain offering customizable pizzas with a focus on bold flavors and toppings

8. RAVE Restaurant Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for RAVE Restaurant Group, Inc. is medium because while there are some substitutes available, they are not very attractive to customers. The company's restaurants offer a unique dining experience that is not easily replicable by substitutes.

Bargaining Power Of Customers

The bargaining power of customers for RAVE Restaurant Group, Inc. is low because customers have limited options and the company's restaurants are well-established brands. Customers are not very price-sensitive and are willing to pay a premium for the unique dining experience offered by the company's restaurants.

Bargaining Power Of Suppliers

The bargaining power of suppliers for RAVE Restaurant Group, Inc. is medium because while the company has some bargaining power due to its size, suppliers also have some bargaining power due to the specialized nature of their products.

Threat Of New Entrants

The threat of new entrants for RAVE Restaurant Group, Inc. is high because the restaurant industry is highly competitive and there are low barriers to entry. New entrants can easily enter the market and compete with the company's restaurants.

Intensity Of Rivalry

The intensity of rivalry for RAVE Restaurant Group, Inc. is high because the restaurant industry is highly competitive and there are many established players. The company's restaurants face intense competition from other restaurants and fast-food chains.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.03%
Debt Cost 3.95%
Equity Weight 87.97%
Equity Cost 5.81%
WACC 5.59%
Leverage 13.68%

11. Quality Control: RAVE Restaurant Group, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Flanigan's

A-Score: 5.3/10

Value: 8.1

Growth: 3.7

Quality: 5.1

Yield: 4.0

Momentum: 7.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
RAVE

A-Score: 5.3/10

Value: 5.0

Growth: 6.0

Quality: 8.8

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Cannae Holdings

A-Score: 4.7/10

Value: 8.4

Growth: 1.6

Quality: 3.8

Yield: 3.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Cracker Barrel

A-Score: 4.6/10

Value: 6.3

Growth: 3.3

Quality: 2.8

Yield: 7.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
First Watch

A-Score: 4.2/10

Value: 4.7

Growth: 8.2

Quality: 2.2

Yield: 0.0

Momentum: 6.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Denny's

A-Score: 3.5/10

Value: 8.5

Growth: 2.9

Quality: 4.3

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.93$

Current Price

2.93$

Potential

-0.00%

Expected Cash-Flows