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Upturn AI Summary - About
Rave Restaurant Group Inc(RAVE)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for RAVE
11/09/2026: RAVE (1-star) is currently NOT-A-BUY. Pass it for now.
Rave Restaurant Group is a small-cap operator and franchisor of the Pizza Inn and Pie Five Pizza brands. The company's strength lies in its established brand legacy and a simplified, asset-light franchise model. The primary growth opportunity involves revitalizing its franchise network and optimizing unit-level economics through digital upgrades. However, the company faces significant risks from intense competition with well-capitalized national chains, consistent unit attrition, and potential margin pressure from rising operating costs. This stock is best suited for speculative investors who are comfortable with high volatility and should focus on monitoring franchise growth and same-store sales performance.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | The company lacks the consistent, high-growth profile typically sought by growth investors. |
| Momentum investor | Mixed fit | This is a conditional fit based strictly on an upturn in market sentiment or technical momentum signals. |
| Value investor | Mixed fit | Value investors may be interested if the market capitalization trades significantly below the intrinsic value of the brand portfolio. |
| Dividend investor | Weak fit | The company does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Weak fit | High volatility and operational challenges make this stock unsuitable for conservative or low-risk investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is prone to sharp price swings given its small-cap nature and thin trading liquidity. |
| Valuation risk | Medium / high | Valuation is sensitive to changes in franchise growth expectations. |
| Competition risk (Pizza chain dominance) | High | Intense competition from well-capitalized national pizza chains limits pricing power. |
| Business quality | Medium | The franchise model is established but requires consistent execution to maintain royalty growth. |
| Dividend income | Low / none | Shareholders receive no income payments from this equity. |
| Execution risk | Medium / high | Success relies heavily on the ability to recruit franchisees and maintain store health. |
Price Behavior

Downtrend
The stock has experienced a sustained decline in price over recent periods.

Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit -3.88% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 30.13M USD | Price to earnings Ratio 10.6 | 1Y Target Price 2.5 |
Price to earnings Ratio 10.6 | 1Y Target Price 2.5 | ||
Volume (30-day avg) 39.9K shares | Beta 0.56 | 52 Weeks Range 2.06 - 3.60 | Updated Date 11/08/2026 |
52 Weeks Range 2.06 - 3.60 | Updated Date 11/08/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.2 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Franchising | Royalties and initial franchise fees from Pizza Inn and Pie Five operators. | Most revenue comes from the stable collection of royalties based on franchisee sales. |
| Supply Chain | Markup on food and paper products sold to the franchise system. | The company serves as a supplier to its franchisees, providing an additional revenue stream. |
| Company-Owned Stores | Direct revenue from operating a limited number of corporate-owned locations. | Direct store sales contribute to total revenue but involve higher operational overhead. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-11-05 | When - | Estimate - | Actual 0.05 |
Profitability
Profit Margin 22.29% | Operating Margin (TTM) 29.81% |
Management Effectiveness
Return on Assets (TTM) 12.03% | Return on Equity (TTM) 18.28% |
Valuation
Trailing PE 10.6 | Forward PE 100 | Enterprise Value 16.72M | Price to Sales(TTM) 2.33 |
Enterprise Value 16.72M | Price to Sales(TTM) 2.33 | ||
Enterprise Value to Revenue 1.3 | Enterprise Value to EBITDA 4.23 | Shares Outstanding 14.21M | Shares Floating 10.04M |
Shares Outstanding 14.21M | Shares Floating 10.04M | ||
Percent Insiders 6.31 | Percent Institutions 37.56 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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