Bedrijfsoverzicht
Rave Restaurant Group, Inc. is primarily engaged in the operation and franchising of pizza buffet, delivery, carry-out, express restaurants, and ghost kitchens utilizing the Pizza Inn and Pie Five trademarks across the United States and international markets. The company operates within the Consumer Cyclical sector, specifically the Restaurants industry, positioning it as a business whose performance is directly correlated with discretionary consumer spending patterns. As of the latest data, the enterprise holds a market capitalization of $33.40M, generates annual revenue of $12.38M, and employs 24 individuals to execute its operational strategy. These valuation and revenue figures indicate that Rave maintains a small-cap profile, suggesting a niche market presence rather than a dominant player in the broader restaurant landscape. The relatively modest revenue base combined with a small workforce highlights a lean operational model that relies heavily on franchising relationships to expand its footprint without proportionally increasing headcount.
Financiële gezondheid
The company reports a Trailing Twelve Months (TTM) revenue of $12.38M, accompanied by a net income of $2.85M and an EBITDA of $3.67M, which collectively demonstrate a robust bottom line relative to its sales volume. The significant gap between the $12.38M revenue and the $2.85M net income reveals a highly efficient cost structure, as the company retains a substantial portion of its gross receipts after covering all operational expenses and taxes. Operating from a position of strength, Rave maintains free cash flow of $2.16M, which provides the necessary financial flexibility to fund capital expenditures, service debt obligations, or pursue strategic acquisitions without requiring external financing. The company's profitability is further underscored by a gross margin of 73.0%, an operating margin of 24.4%, and a profit margin of 23.0%, indicating that the business effectively controls its cost of goods sold and overhead while delivering strong earnings power. Regarding its balance sheet, Rave holds $10.90M in cash against $393,000 in total debt, resulting in a debt-to-equity ratio of 2.53, which suggests a capital structure that is heavily weighted toward equity financing despite the nominal debt level. Liquidity is exceptionally strong, evidenced by a current ratio of 8.50, meaning the company possesses more than eight times the current assets necessary to cover its short-term liabilities. Return on Equity stands at 19.5% and Return on Assets is 12.9%, metrics that reveal management is highly effective at generating shareholder value and utilizing the company's asset base to produce earnings.
Waarderingsbeoordeling
Valuation metrics for Rave show a trailing P/E ratio of 11.75 and a forward P/E of -15.67, where the negative forward multiple implies that analysts project future earnings that are currently depressed or absent, creating a discrepancy with historical profitability. The price-to-book ratio is 2.15, indicating that the market values the company's equity at a premium of more than double its net asset book value. Alternative valuation measures include a price-to-sales ratio of 2.70 and an EV/EBITDA of 6.24, which suggest the stock is priced moderately relative to its sales and earnings generation capabilities. In terms of recent price action, the stock has traded between a 52-week high of $3.75 and a 52-week low of $2.11, currently trading within the lower half of this established range. The stock exhibits a beta of 0.37, which indicates that the share price is significantly less volatile than the broader market and tends to move with a dampened amplitude relative to general market fluctuations.
Growth & Income
Rave Restaurant Group, Inc. reports a revenue growth rate of 6.0% year-over-year, while earnings growth is recorded at 0.0%, implying that the company is expanding its sales base but has not yet translated this volume increase into proportional earnings growth. Since the dividend yield is N/A and the payout ratio is 0.0%, the company does not distribute dividends to shareholders, which aligns with a strategy of retaining earnings to fund operations or growth initiatives rather than providing income to investors. The zero payout ratio confirms that all generated earnings are available for reinvestment into the business or debt reduction, supporting the current expansion efforts. Overall, the company presents a profile of steady sales expansion without current earnings acceleration or income distribution, relying on operational efficiency and market share gains to drive long-term value creation.