RAVE Restaurant Group, Inc. (RAVE) Valuation — DCF, Graham & Comparables

RAVE Restaurant Group, Inc. (RAVE) — Price $2.85 Consumer CyclicalRestaurants — NASDAQ

Latest reported results:

Valuation dashboard for RAVE Restaurant Group, Inc. (RAVE) with P/E 12.93, P/B 2.30, EV/EBITDA 9.25 and dividend yield 0.00%. DCF, Graham Number and Earnings Power Value models plus sector comparison against other Consumer Cyclical companies.

RAVE Restaurant Group, Inc., through its various subsidiaries, manages a diverse portfolio of pizza restaurant concepts. It primarily operates and licenses locations under the Pizza Inn brand, which encompasses buffet, delivery/carry-out (delco), and express formats, catering to customers both domestically and in international markets. The company's operations are divided into three core segments: Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants.

Analysis Summary

RAVE Restaurant Group, Inc. reported revenue of $12.0M in the most recent fiscal year, growing at a 5-year CAGR of 3.7%.

Trailing-twelve-month margins: gross margin 73.0%, operating margin 28.4%, net margin 23.2%.

At the current price of $2.85, RAVE trades at a P/E of 12.93 and an ROE of 19.21%. Market capitalisation stands at $41M.

Balance sheet quality for RAVE: current ratio of 6.6. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio12.93
Price / Book2.30
EV / EBITDA9.25
Dividend Yield0.00%

Valuation Models

DCF Fair Value$4.53
vs Current Price+59.1%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
RAVERAVE Restaurant Group, Inc.$41M12.932.3019.2%
MCDMcDonald's Corporation$179.6B20.14-478.1%
SBUXStarbucks Corporation$111.0B54.57-24.3%
CPG.LCompass Group PLC$52.6B25.766.6126.1%
0HXW.LChipotle Mexican Grill, Inc.$47.5B
0QYD.LYum! Brands, Inc.$43.7B
CMGChipotle Mexican Grill, Inc.$43.2B31.6020.1653.3%
YUMYum! Brands, Inc.$38.8B17.57-30.3%

Price

Price$2.85
Market Cap$41M
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity19.21%
Return on Invested Capital15.35%
Return on Assets15.76%
Gross Margin73.04%
Operating Margin28.36%
Net Margin23.19%

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Explore sector: Consumer Cyclical · Restaurants

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