Rave Restaurant Group Inc. Common Stock (RAVE)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I look for understandable businesses at fair prices with a margin of safety. Rave is a tiny franchisor of Pizza Inn and Pie Five. It operates through Pizza Inn Franchising and Pie Five Franchising segments and reports only 24 employees, so it appears asset-light. Filed results show fiscal 2026 revenue of $12.9M, net income of $2.9M, and diluted EPS of $0.20, versus fiscal 2025 revenue of $12.0M, net income of $2.7M, and diluted EPS of $0.19. In fiscal Q3 2026, the quarter ended 2026-03-29, revenue was $3.2M, net income $800,000, and diluted EPS $0.06. The balance sheet looks conservative. FairStock calculations show debt-to-equity of 0.02, Altman Z-score of 10.68, Piotroski F-score of 9/9, ROE of 19.66%, and ROCE of 13.08%. Trailing free cash flow is $3.2M, a 10.3% FCF yield against the $31.3M market cap. At the 2026-10-13 close of $2.20, FairStock shows P/E 10.48, P/B 1.90, EV/EBITDA 7.49, and PEG 2.12. The Graham Number is $2.34, leaving only a 5.98% margin of safety, so the price is close to fair rather than deeply cheap. FairStock's Lynch category is STALWART, based on 13.6% five-year profit growth and 8.5% revenue growth. The competitive pizza franchise field limits the moat, but low debt and steady cash generation give staying power. I would want more unit growth or a wider discount before calling it compelling.

In plain English: Rave Restaurant Group is a small company that runs and franchises pizza restaurants, mainly Pizza Inn and Pie Five. The business looks financially healthy: it earns steady profits, carries very little debt, and generates free cash. At the recent price of $2.20, the shares look close to fair value based on the company's earnings and assets, not obviously cheap or expensive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-29) · fiscal Q2 2026 10-Q (period ended 2025-12-28) · fiscal Q1 2026 10-Q (period ended 2025-09-28) · fiscal Q3 2025 10-Q (period ended 2025-03-30) · FY2026 10-K (period ended 2026-06-28) · FY2025 10-K (period ended 2025-06-29) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer