📊 RAVE Key Takeaways
Is Rave Restaurant Group, Inc.. (RAVE) a Good Investment?
While RAVE demonstrates exceptional balance sheet strength with zero debt and 8.6x liquidity ratios, the dramatic 3300% revenue growth coupled with flat net income growth raises serious concerns about earnings quality and sustainability. The massive disconnect between revenue expansion and profitability suggests margin compression, one-time revenue items, or potential accounting irregularities requiring clarification.
Rave Restaurant Group, Inc.. Key Strengths (RAVE)
- Exceptional liquidity position with 8.63x current ratio and zero long-term debt
- High profit margins (22% net margin, 25.9% operating margin) on base business
- Strong free cash flow generation with 21.1% FCF margin relative to revenue
RAVE Stock Risks: Rave Restaurant Group, Inc.. Investment Risks
- Highly anomalous 3300% revenue growth with 0% net income growth indicates severe earnings quality concerns
- Dramatic revenue increase without corresponding profit growth suggests margin compression or unsustainable revenue sources
- Very small company scale with only $18.6M assets and minimal cash ($1.1M) limits financial resilience
Key Metrics to Watch
- Net income growth rate relative to revenue in subsequent quarters to assess profitability sustainability
- Gross margin and operating expense ratio changes to identify sources of profit compression
- Operating cash flow quality and recurrence of reported revenues to validate earnings sustainability
Rave Restaurant Group, Inc.. (RAVE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 8.63x current ratio provides a solid financial cushion.
RAVE Profit Margin, ROE & Profitability Analysis
RAVE vs Market Sector: How Rave Restaurant Group, Inc.. Compares
How Rave Restaurant Group, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rave Restaurant Group, Inc.. Stock Overvalued? RAVE Valuation Analysis 2026
Based on fundamental analysis, Rave Restaurant Group, Inc.. appears fundamentally strong relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rave Restaurant Group, Inc.. Balance Sheet: RAVE Debt, Cash & Liquidity
RAVE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rave Restaurant Group, Inc..'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.10 reflects profitable operations.
RAVE Revenue Growth, EPS Growth & YoY Performance
RAVE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $3.0M | $526.0K | $0.05 |
| Q2 2026 | $2.9M | $526.0K | $0.04 |
| Q1 2026 | $3.1M | $526.0K | $0.04 |
| Q3 2025 | $3.0M | $386.0K | $0.04 |
| Q2 2025 | $2.7M | $386.0K | $0.04 |
| Q1 2025 | $3.1M | $386.0K | $0.03 |
| Q3 2024 | $3.0M | $307.0K | $0.02 |
| Q2 2024 | $2.8M | $307.0K | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rave Restaurant Group, Inc.. Dividends, Buybacks & Capital Allocation
RAVE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rave Restaurant Group, Inc.. (CIK: 0000718332)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RAVE
What is the AI rating for RAVE?
Rave Restaurant Group, Inc.. (RAVE) has an AI grade of B with 38% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RAVE's key strengths?
Claude: Exceptional liquidity position with 8.63x current ratio and zero long-term debt. High profit margins (22% net margin, 25.9% operating margin) on base business.
What are the risks of investing in RAVE?
Claude: Highly anomalous 3300% revenue growth with 0% net income growth indicates severe earnings quality concerns. Dramatic revenue increase without corresponding profit growth suggests margin compression or unsustainable revenue sources.
What is RAVE's revenue and growth?
Rave Restaurant Group, Inc.. reported revenue of $9.5M.
Does RAVE pay dividends?
Rave Restaurant Group, Inc.. does not currently pay dividends.
Where can I find RAVE SEC filings?
Official SEC filings for Rave Restaurant Group, Inc.. (CIK: 0000718332) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RAVE's EPS?
Rave Restaurant Group, Inc.. has a diluted EPS of $0.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RAVE's fundamental grade?
Based on our AI fundamental analysis in May 2026, Rave Restaurant Group, Inc.. has a B grade with 38% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is RAVE stock overvalued or undervalued?
Valuation metrics for RAVE: ROE of 12.7% (sector avg: 15%), net margin of 22.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is RAVE's AI grade for 2026?
Our dual AI analysis gives Rave Restaurant Group, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is RAVE's free cash flow?
Rave Restaurant Group, Inc..'s operating cash flow is $2.1M, with capital expenditures of $49.0K. FCF margin is 21.1%.
How does RAVE compare to other Market stocks?
Vs Default sector averages: Net margin 22.0% (avg: 12%), ROE 12.7% (avg: 15%), current ratio 8.63 (avg: 1.8).