-4.36%
27.92%
0.99%
74.43%
75.43%
195.19%
137.98%

Company Description

Rave Restaurant Group, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn trademark in the United States and internationally.It operates through three segments: Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants.The company's buffet restaurants are located in free standing buildings or strip centers in retail developments that offer dine-in, carryout, and catering services, as well as delivery services.


Its delco restaurants provide delivery and carryout services and are located in shopping centers or other in-line retail developments.The company's Express restaurants serve customers through various non-traditional points of sale and are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities.In addition, it operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks.


As of June 27, 2021, the company had 33 franchised Pie Five Units, 156 franchised Pizza Inn restaurants, and 11 licensed Pizza Inn Express, or PIE, kiosks.The company was formerly known as Pizza Inn Holdings, Inc.and changed its name to Rave Restaurant Group, Inc.


in January 2015.Rave Restaurant Group, Inc.was founded in 1958 and is based in The Colony, Texas.

Market Data

Last Price 3.07
Change Percentage -4.36%
Open 3.12
Previous Close 3.21
Market Cap ( Millions) 45
Volume 3945
Year High 3.36
Year Low 1.64
M A 50 2.62
M A 200 2.3

Financial Ratios

FCF Yield 7.90%
Dividend Yield 0.00%
ROE 20.68%
Debt / Equity 5.54%
Net Debt / EBIDTA -56.04%
Price To Book 3.27
Price Earnings Ratio 16.91
Price To FCF 12.66
Price To sales 3.69
EV / EBITDA 11.45

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Pizza Inn Franchising

Expected Growth : 4.5 %

What the company do ?

Pizza Inn Franchising from RAVE Restaurant Group, Inc. offers a franchise model for entrepreneurs to operate a Pizza Inn restaurant, providing training, support, and resources for success.

Why we expect these perspectives ?

Growing demand for convenient, affordable dining options and increasing popularity of franchise business models drive growth in the pizza industry, with Pizza Inn's franchise model offering entrepreneurs a proven system for success.

Segment nΒ°2 -> Pie Five Franchising

Expected Growth : 10.2 %

What the company do ?

Pie Five Franchising, a subsidiary of RAVE Restaurant Group, Inc., offers a fast-casual pizza franchise opportunity with customizable pizzas cooked in 5 minutes.

Why we expect these perspectives ?

Growing demand for fast-casual dining, increasing popularity of customizable pizzas, and Pie Five's innovative 5-minute cooking concept drive growth in the fast-casual pizza market.

Segment nΒ°3 -> Corporate Administration and Other

Expected Growth : 4.5 %

What the company do ?

Corporate Administration and Other from RAVE Restaurant Group, Inc. refers to the company's headquarters and other non-restaurant activities, including administrative support functions.

Why we expect these perspectives ?

The Corporate Administration and Other segment is expected to grow driven by increasing demand for administrative support functions, expansion of restaurant chains, and investments in digital transformation.

Rave Restaurant Group, Inc. Products

Product Range What is it ?
Pie Five Pizza A fast-casual pizza chain offering customizable pizzas cooked in a brick oven
Pieology A fast-casual pizza chain offering customizable pizzas with a focus on fresh and high-quality ingredients
Mojo Pizza A fast-casual pizza chain offering customizable pizzas with a focus on bold flavors and toppings

RAVE Restaurant Group, Inc.'s Porter Forces

The threat of substitutes for RAVE Restaurant Group, Inc. is medium because while there are some substitutes available, they are not very attractive to customers. The company's restaurants offer a unique dining experience that is not easily replicable by substitutes.

The bargaining power of customers for RAVE Restaurant Group, Inc. is low because customers have limited options and the company's restaurants are well-established brands. Customers are not very price-sensitive and are willing to pay a premium for the unique dining experience offered by the company's restaurants.

The bargaining power of suppliers for RAVE Restaurant Group, Inc. is medium because while the company has some bargaining power due to its size, suppliers also have some bargaining power due to the specialized nature of their products.

The threat of new entrants for RAVE Restaurant Group, Inc. is high because the restaurant industry is highly competitive and there are low barriers to entry. New entrants can easily enter the market and compete with the company's restaurants.

The intensity of rivalry for RAVE Restaurant Group, Inc. is high because the restaurant industry is highly competitive and there are many established players. The company's restaurants face intense competition from other restaurants and fast-food chains.

Capital Structure

Value
Debt Weight 12.03%
Debt Cost 3.95%
Equity Weight 87.97%
Equity Cost 5.81%
WACC 5.59%
Leverage 13.68%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
FWRG First Watch Restaurant Group, Inc. operates and franchises restaurants under the First Watch trade name. As of March 23, 2022, it operated 341 company-owned restaurants and 94 franchised restaurants in …
CNNE Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae …
DENN Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. As of December 29, 2021, it had 1,640 franchised, licensed, and company restaurants …
CBRL Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. The company's Cracker Barrel stores consist of a restaurant with …
BDL Flanigan's Enterprises, Inc., together with its subsidiaries, operates a chain of full-service restaurants and package liquor stores in South Florida. It operates in two segments, Package Stores and Restaurants. The …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
3.07$
Current Price
3.07$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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