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olivLaw · US equity research

RAVE Restaurant Group, Inc. RAVE

Wholesale-Groceries & Related Products · SIC 5140 · Vertical: Wholesale — nondurable goods (SIC 514x)

2.19USD+1.39% · 1 dayClose 04 Nov 2026

RAVE Restaurant Group franchises and licenses the Pizza Inn and Pie Five pizza restaurant brands, so it earns royalties, franchise fees and distributor income rather than operating restaurants directly. Total revenue in fiscal 2026 was 12.9 million USD and net income rose, while Pie Five sales continued to decline.

At the close of 04 Nov 2026, RAVE Restaurant Group, Inc. (RAVE) stock was 2.19 USD (+1.39% on the day), with market capitalisation 31.1 m USD, P/E 11.0 on diluted EPS of 0.20 USD over the last 12 months, beta 0.62, 52-week range 2.09–3.48 USD. Latest reported quarter (Q4 2026): revenue of 3.4 m USD (+8.8% YoY), net income of 796.0 k USD (−6.0% YoY), diluted EPS 0.06 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
31.1 m USD
shares as of 17 Sept 2026
P/E (TTM)
11.0
Diluted EPS TTM 0.20 · TTM to 28 Jun 2026
E/P (TTM)
9.13%
TTM to 28 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.62
Volatility (1y) 49%
52-week range
2.093.48

Price history

Loading chart…

Technical reading

RSI (14)
41.3
weak (30–45)
Bollinger (20, 2)
2.11 – 2.29
in the lower half of the band · %B 0.45 · band width 7.9%
SMA 50 / 200
2.53 / 2.86
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.09 / -0.11
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−4.4%−1.1%−3.3 pp—
3 months−31.6%−0.5%−31.1 pp—
6 months−18.0%+4.4%−22.4 pp—
Year to date−33.6%+12.3%−46.0 pp—
1 year−6.0%+13.5%−19.6 pp+12.9%
3 years−5.6%+76.4%−82.0 pp+37.5%
5 years+71.1%+63.7%+7.4 pp—
Max drawdown (1y)
−39.9%
11 Feb 2026 → 30 Oct 2026
Max drawdown (5y)
−45.1%
24 Nov 2021 → 11 May 2022
Compound annual growth (5y)
+11.3%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q4 2026 · 28 Jun 2026

Revenue
3.4 m USD
+8.8% YoY
Net income
796.0 k USD
−6.0% YoY
Diluted EPS
0.06
−5.6% YoY
net / operating
23.2% / 29.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26
Revenue3.1 m2.9 m3.0 m3.2 m3.2 m3.0 m3.2 m3.4 m
Operating income609.0 k664.0 k855.0 k1.1 m752.0 k742.0 k957.0 k1.0 m
Depreciation & amortisation43.0 k53.0 k44.0 k42.0 k42.0 k42.0 k42.0 k41.0 k
Pre-tax income695.0 k751.0 k950.0 k1.2 m851.0 k842.0 k1.1 m1.1 m
Income tax169.0 k144.0 k228.0 k377.0 k206.0 k205.0 k255.0 k340.0 k
Net income526.0 k607.0 k722.0 k847.0 k645.0 k637.0 k800.0 k796.0 k
Diluted EPS0.040.040.050.06 ≈0.050.040.060.06 ≈
Operating cash flow530.0 k711.0 k ≈961.0 k ≈1.2 m608.0 k306.0 k ≈1.1 m ≈1.5 m
Capex044.0 k ≈0 ≈12.0 k8.0 k9.0 k ≈32.0 k ≈0
Share repurchases———-1.0 k———0

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 27 percentile of its own 22-quarter history (min 2.1, median 13.6, max 44.9; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue12.3 m10.0 m8.6 m10.7 m11.9 m12.2 m12.0 m12.9 m
Revenue YoY−18.5%−18.6%−14.3%+24.4%+11.2%+2.2%−0.9%+7.2%
Net income-750.0 k-4.2 m1.5 m8.0 m1.6 m2.5 m2.7 m2.9 m
Net income YoY−139.2%unavailableunavailable+427.8%−79.9%+53.3%+9.3%+6.5%
Diluted EPS-0.05-0.280.090.450.100.170.190.20
Diluted EPS YoY−138.5%unavailableunavailable+400.0%−77.8%+70.0%+11.8%+5.3%
net %-6.1%-42.2%17.7%75.0%13.6%20.4%22.4%22.3%
Free cash flow578.0 k-416.0 k1.3 m1.3 m2.8 m2.8 m3.3 m3.5 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 28 Jun 2026

Cash
1.1 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
17.3 m USD
Total assets
19.5 m USD
Debt / equity
unavailable
Current ratio
9.31x
ROE
18.3%
ROA
15.9%
FCF margin
27.1%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
12.2 m
2025
12.0 m
2026
12.9 m

SEC (XBRL)· 24 Sept 2026verified

Cost of revenue
2024
—
2025
—
2026
—

SEC (XBRL)· 21 Sept 2023verified

Gross profit
2024
—
2025
—
2026
—

SEC (XBRL)· 21 Sept 2023derived

Operating income
2024
2.9 m
2025
3.2 m
2026
3.5 m

SEC (XBRL)· 24 Sept 2026verified

Depreciation & amortisation
2024
219.0 k
2025
182.0 k
2026
167.0 k

SEC (XBRL)· 24 Sept 2026verified

EBITDA
2024
3.1 m ≈
2025
3.4 m ≈
2026
3.6 m ≈

SEC (XBRL)· 24 Sept 2026derived

Interest expense
2024
—
2025
—
2026
—

SEC (XBRL)· 21 Sept 2023verified

Pre-tax income
2024
3.1 m
2025
3.6 m
2026
3.9 m

SEC (XBRL)· 24 Sept 2026verified

Income tax
2024
619.0 k
2025
918.0 k
2026
1.0 m

SEC (XBRL)· 24 Sept 2026verified

Net income
2024
2.5 m
2025
2.7 m
2026
2.9 m

SEC (XBRL)· 24 Sept 2026verified

Diluted EPS
2024
0.17
2025
0.19
2026
0.20

SEC (XBRL)· 24 Sept 2026verified

Weighted average diluted shares
2024
14.6 m
2025
14.6 m
2026
14.3 m

SEC (XBRL)· 24 Sept 2026verified

Balance sheet · USD

Cash
2024
2.9 m
2025
2.9 m
2026
1.1 m

SEC (XBRL)· 24 Sept 2026verified

Receivables
2024
1.4 m
2025
1.2 m
2026
1.4 m

SEC (XBRL)· 24 Sept 2026verified

Current assets
2024
9.5 m
2025
11.5 m
2026
15.8 m

SEC (XBRL)· 24 Sept 2026verified

Property, plant & equipment, net
2024
182.0 k
2025
137.0 k
2026
101.0 k

SEC (XBRL)· 24 Sept 2026verified

Intangibles (excl. goodwill)
2024
252.0 k
2025
182.0 k
2026
100.0 k

SEC (XBRL)· 24 Sept 2026verified

Total assets
2024
15.8 m
2025
16.6 m
2026
19.5 m

SEC (XBRL)· 24 Sept 2026verified

Short-term debt
2024
—
2025
—
2026
—

SEC (XBRL)· 21 Sept 2023verified

Current liabilities
2024
2.0 m
2025
1.7 m
2026
1.7 m

SEC (XBRL)· 24 Sept 2026verified

Total liabilities
2024
3.1 m
2025
2.4 m
2026
2.2 m

SEC (XBRL)· 24 Sept 2026verified

Equity
2024
12.7 m †
2025
14.2 m †
2026
17.3 m †

SEC (XBRL)· 24 Sept 2026verified

Cash flow · USD

Operating cash flow
2024
2.8 m
2025
3.4 m
2026
3.6 m

SEC (XBRL)· 24 Sept 2026verified

Capex
2024
76.0 k
2025
56.0 k
2026
49.0 k

SEC (XBRL)· 24 Sept 2026verified

Free cash flow
2024
2.8 m ≈
2025
3.3 m ≈
2026
3.5 m ≈

SEC (XBRL)· 24 Sept 2026derived

Investing cash flow
2024
-5.0 m
2025
-2.0 m
2026
-5.3 m

SEC (XBRL)· 24 Sept 2026verified

Financing cash flow
2024
-311.0 k
2025
-1.4 m
2026
0

SEC (XBRL)· 24 Sept 2026verified

Share repurchases
2024
0
2025
1.2 m
2026
0

SEC (XBRL)· 24 Sept 2026verified

Computed indicators

Growth

Revenue growth (YoY)
7.2%
computed by olivLawFY 2026
Revenue CAGR 3Y
2.8%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
8.5%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
7.0%
computed by olivLawFY 2026
Net income growth (YoY)
6.5%
computed by olivLawFY 2026
Net income CAGR 3Y
21.3%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
13.6%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
5.3%
computed by olivLawFY 2026
EPS CAGR 3Y
26.0%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
17.3%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
4.9%
computed by olivLawFY 2026

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
28.2%
computed by olivLawFY 2026
EBIT margin
26.9%
computed by olivLawFY 2026
Net margin
22.3%
computed by olivLawFY 2026
FCF margin
27.1%
computed by olivLawFY 2026

Returns

ROE
18.3%
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
ROA
15.9%
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
ROIC
unavailable
input data missing
ROCE
19.5%
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
9.3x
computed by olivLawbalance sheet at 28 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.7x
computed by olivLawbalance sheet at 28 Jun 2026

Cash

Operating cash flow
3.6 m USD
computed by olivLawFY 2026
Capital expenditure
49.0 k USD
computed by olivLawFY 2026
Free cash flow
3.5 m USD
computed by olivLawFY 2026
FCF conversion
121.7%
computed by olivLawFY 2026
Cash conversion
97.6%
computed by olivLawFY 2026

Efficiency

Days sales outstanding
37 days
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
31.1 m USD
computed by olivLawbalance sheet at 28 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
10.8x
computed by olivLawFY 2026
P/E (TTM)
11.0x
computed by olivLawFY 2026
Earnings yield
9.1%
computed by olivLawFY 2026
P/B
1.8x
computed by olivLawbalance sheet at 28 Jun 2026
P/S
2.4x
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
8.9x
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
FCF yield
11.3%
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
0.0%
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 58.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

2.19 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 31.1 m USD

Key indicators

Market capitalisation
31.1 m USD
computed by olivLawbalance sheet at 28 Jun 2026
P/E (TTM)
11.0x
computed by olivLawFY 2026
P/B
1.8x
computed by olivLawbalance sheet at 28 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
18.3%
computed by olivLawFY 2026 · balance sheet at 28 Jun 2026
Net margin
22.3%
computed by olivLawFY 2026
Revenue growth (YoY)
7.2%
computed by olivLawFY 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

28/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 28 Jun 2026
Latest balance sheet date: 28 Jun 2026
Share count (cover of the latest filing), as of: 17 Sept 2026
Source: SEC (XBRL)published 24 Sept 2026
verified 1977derived 161

Score by group

58% · Insufficient data

Estimated value range

Low
5.36
USD per share
Mid
6.77
USD per share
High
7.97
USD per share
Price: 2.19 USD
The price is below the range
Potential to the central value: 209.0% (value / price − 1)
Margin of safety: 67.6% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.36 – 7.97 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E5.36 – 7.97 (Mid 6.77)
    7 companies used · median multiple 33.8x · quartiles 26.8x – 39.8x
    CHEF, DIT, DPZ, PFGC, SYY, UNFI, USFD
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Wholesale — nondurable goods (SIC 514x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 58.3% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality22.3%100 (vs peers)11%
FCF conversion · Quality121.7%100 (on a fixed band)11%
Revenue CAGR 3Y · Growth2.8%23 (on a fixed band)14%
EPS CAGR 3Y · Growth26.0%100 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet9.3x100 (on a fixed band)7%
P/E (TTM) · Valuation11.0x100 (vs peers)18%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation11.3%100 (on a fixed band)14%
Shareholder yield (distributions) · Returns0.0%0 (on a fixed band)11%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth62/100 · 2/2 factors with a value
  • Quality100/100 · 2/3 factors with a value
  • Returns· partial0/100 · 1/2 factors with a value
  • Valuation100/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

RAVE RESTAURANT GROUP, INC. (RAVE). Latest full fiscal year: 2026; data up to 2026-06-28.

Figures computed from the financial statements: revenue 12.9 m USD in 2026; YoY growth 7.2%; net margin 22.3%; ROE 18.3%.

The estimated value range is 5.36–7.97 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 6.77 USD, the price of 2.19 USD leaves a potential of 209.0% (value / price − 1) and a margin of safety of 67.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 22.3%
  • FCF conversion: 121.7%
  • EPS CAGR 3Y: 26.0%
  • Current ratio: 9.3x
  • P/E (TTM): 10.9x
  • FCF yield: 11.3%
  • The price is below the estimated value range

What contradicts it

  • Revenue CAGR 3Y: 2.8%
  • Shareholder yield (distributions): 0.0%

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Wholesale — nondurable goods (SIC 514x) · same industry group (3-digit SIC) · compared with 9 companies

Multiples and returns vs the median

P/E
11.0x
vertical median 33.8x
below median (−67.6%)
EV/EBITDA
—
vertical median 10.2x
P/S
2.4x
vertical median 0.4x
above median (+442.0%)
P/B
1.8x
vertical median 4.5x
below median (−60.0%)
ROE
18.3%
vertical median 6.8%
above median (+170.7%)
Net margin
22.3%
vertical median 0.6%
above median (+3,779.9%)
EBIT margin
26.9%
vertical median 1.4%
above median (+1,879.6%)
Revenue YoY
7.2%
vertical median 4.1%
above median (+77.1%)
Net debt/EBITDA
—
vertical median 0.6x
Dividend yield
—
vertical median 2.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SYYSysco Corporation37.9 bn20.559.1%2.1%+3.9%+1% / +7%
USFDUs Foods Holding Corp.23.8 bn33.816.4%1.8%+4.1%+40% / +151%
PFGCPerformance Food Group Company17.3 bn43.78.2%0.6%+7.2%+13% / +68%
DPZDomino’s Pizza, Inc.11.2 bn19.3—11.9%+5.0%−19% / −13%
CHEFChefs’ Warehouse, Inc.4.6 bn46.516.2%2.3%+9.4%+74% / +297%
UNFIUnited Natural Foods, Inc.2.9 bn36.05.3%0.3%−2.0%+29% / +232%
HFFGHf Foods Group Inc.80.3 m—-15.5%-2.8%+2.2%−41% / −69%
DITAmcon Distributing Co59.4 m33.11.6%0.1%+3.9%−19% / −48%
RAVERave Restaurant Group, Inc.31.1 m11.018.3%22.3%+7.2%−6% / −6%
MWYNMarwynn Holdings, Inc.27.7 m—-54.7%-24.7%+427.5%+59% / unavailable

1- and 3-year price returns: for RAVE from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
1.29
Total return -41% · Per year -41%
2.28
Total return 4% · Per year 4%
3.44
Total return 57% · Per year 57%
3 years
1.21
Total return -45% · Per year -18%
2.41
Total return 10% · Per year 3%
3.99
Total return 82% · Per year 22%
5 years
1.13
Total return -48% · Per year -12%
2.54
Total return 16% · Per year 3%
4.64
Total return 112% · Per year 16%
What moves the 3-year price the most
  • Exit P/E± 0.60
  • Net margin± 0.42
  • Annual revenue growth± 0.35
  • Annual dilution± 0.04

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

RAVE Restaurant Group franchises and licenses the Pizza Inn and Pie Five pizza restaurant brands, so it earns royalties, franchise fees and distributor income rather than operating restaurants directly. Total revenue in fiscal 2026 was 12.9 million USD and net income rose, while Pie Five sales continued to decline.

SWOT

Strengths

  • A franchise-based model earning royalties and fees, less exposed to direct operating costs. The company was profitable and reported its highest pre-tax profit in roughly twenty-three years, according to the press release 2.
  • The Pizza Inn brand has a long history and a buffet unit base that has grown for a fifth consecutive year 2.

Weaknesses

  • A small size, with few full-time employees and limited resources compared with large competitors 1.
  • Reliance on third-party franchisees to open and run restaurants, which limits direct control over the customer experience 1.
  • Pie Five sales are falling, and the segment has declining revenue and a planned reduction in unit count 12.

Opportunities

  • A development agreement for ten buffet units with a new operator could accelerate restaurant growth 2.
  • Promotional partnerships and new products with increased media support could drive restaurant traffic 2.
  • International expansion, especially in the Middle East, could add revenue if well-capitalized developers emerge 1.

Threats

  • Intense competition in pizza and fast-casual dining could pressure franchisee prices and margins 1.
  • Supplier price fluctuations and supply chain disruptions could raise franchisee costs 1.
  • The internal dispute over executive pay and the harassment complaint could affect governance and the company's reputation 2.

Risks

  • Internal executive disputehigh

    In August 2026 the chief executive delivered a formal complaint about harassment by the board, linked to the refusal to raise his base salary. The company engaged a law firm to investigate, and the outcome could influence governance 2.

  • Continued decline in Pie Five unitsmedium

    The number of Pie Five units has fallen and could keep falling, which would reduce revenue from this segment 1.

  • Dependence on franchisee developmentmedium

    Growth depends on selecting qualified franchisees and finding suitable sites, and delays could postpone planned openings 1.

  • Supply cost volatilitymedium

    Supplier prices are volatile and the company does not hedge commodities, which could affect franchisees and demand 1.

  • Competition and market shiftslow

    Changes in competitor pricing or strategy could affect sales and earnings, according to the company 1.

Investment thesis

What would need to be true (bull case)

  • Buffet unit growth for a fifth consecutive year, combined with a new development agreement, could support faster royalty revenue growth.
  • Rising profitability and an asset-light franchise model could let the company keep steady profits even in a competitive market.
  • Cash and short-term investments give financial flexibility for development or returning capital to shareholders.

What would break the thesis

  • Pie Five sales are falling, and the unit count could keep shrinking, which would weaken one of the two segments.
  • Pizza Inn comparable store sales fell in the last quarter, which could signal that the positive trend is slowing.
  • The internal executive dispute could distract management and harm the company's reputation if the investigation has unfavorable results.

What to watch

  • Opening of the first units under the ten-restaurant buffet development agreement2027
  • Outcome of the investigation into the executive harassment complaintnext 10-K
  • Pie Five comparable sales and unit count trendQ1 2027
  • Whether Pizza Inn comparable sales recover after the last quarter's declineQ1 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The company franchises restaurants under the Pizza Inn brand, including buffet, delivery, express and ghost kitchen units, and under the Pie Five brand, a fast-casual concept with personalized pizzas. Pizza Inn has operated since 1958 and Pie Five launched in 2011. The model relies on royalties, franchise fees and income from food distributors rather than direct restaurant operations, which keeps revenue relatively steady. As of fiscal 2026 the company had 24 full-time employees, according to 1.

Segments

Pie Five Franchising

The Pie Five segment generated about 0.9 million USD of revenue in fiscal 2026, down because of unit closures and lower royalties. The company noted that the number of Pie Five units could decrease in future periods 1.

Market context

Domestic Pizza Inn restaurants are concentrated in the southern United States, especially North Carolina, Texas, Arkansas and South Carolina. The pizza market is highly competitive, with national and regional chains and frozen pizza sold in grocery stores. The fast-casual segment has grown, and competitors have developed concepts similar to Pie Five in metropolitan areas 1.

The international market is small and concentrated in the Middle East, mainly Saudi Arabia and neighboring countries, with a few restaurants in Honduras and New Zealand. Expansion depends on finding experienced, well-capitalized developers, which limits the pace of growth 1.

Trends

  • Return to growth in buffet unitstailwind

    The number of Pizza Inn buffet units has grown for a fifth consecutive year, and the company has signed a development agreement for ten new units with a new operator. If these openings materialize, they could support royalty revenue 2.

  • Decline in Pie Five salesheadwind

    Pie Five domestic comparable store sales fell 9.9% in fiscal 2026 and the unit count dropped. The company expects Pie Five units could decrease further, which could reduce segment revenue 21.

  • Cost and competition pressureheadwind

    Supplier prices fluctuate and franchisees bear cost increases. Intense competition in pizza and fast-casual dining could limit pricing and margins 1.

Competitive position

The company competes with national and regional pizza chains, local restaurants and frozen pizza sold in grocery and superstore retailers. Many competitors have better-known brands and greater financial resources than RAVE, according to the company's description 1.

In the fast-casual segment, several competitors have developed pizza concepts that compete with Pie Five in certain metropolitan areas. A change in pricing or market strategy by competitors could adversely affect the company's sales and earnings 1.

  • National pizza chains

    Main competitors in the pizza segment, with better-known brands and larger resources, according to the company's description 1.

  • Regional pizza chains

    Operators with presence in regional markets, competing directly with Pizza Inn restaurants in the South 1.

  • Fast-casual pizza concepts

    Recently developed chains competing with Pie Five in metropolitan areas 1.

  • Frozen pizza in grocery stores

    Frozen products sold in grocery and superstore retailers that compete with restaurant pizza 1.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-06-28 · SEC / RAVE Restaurant Group, Inc. · 24 Sept 2026
  2. [2] Form 8-K, results release (exhibit 99.1) · SEC / RAVE Restaurant Group, Inc. · 24 Sept 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.