Start here if you're new
what it is
Rave franchises Pizza Inn and Pie Five restaurants, then collects fees while other people fund most of the stores.
how it gets paid
Last year Rave Restaurant made $12M in revenue. Pizza Inn Buffet units was the main engine at $7.0M, or 58% of sales.
why growth slowed
Revenue fell 0.9% last year. The quarter looked huge against a tiny base.
what just happened
Latest quarter revenue hit $6M, up 106% vs. prior year, while EPS rose to $0.09.
At a glance
C++ balance sheet — some cracks in the foundation
30/100 earnings predictability — expect surprises
16.9x trailing p/e — the market's not buying it — or you found a deal
18.8% return on capital — nothing to write home about
$0.19 fy2025 eps est
xvary composite: 41/100 — below average
What they do
Rave franchises Pizza Inn and Pie Five restaurants, then collects fees while other people fund most of the stores.
Franchising (other people fund the stores) → Rave collects fees and support income → so what: you get a restaurant company with just 21 employees and $0 million of debt. That setup helped produce a 31.7% operating margin in fiscal 2025 on roughly $12 million of revenue. Your money is riding on an asset-light model, not on Rave building restaurants itself.
How they make money
$12M
annual revenue · their business grew -0.9% last year
Pizza Inn Buffet units
$7.0M
Pizza Inn Delco units
$0.4M
Pizza Inn Express and Ghost Kitchen units
$1.0M
International Pizza Inn units
$2.0M
Pie Five units
$1.5M
PIE kiosk licensing
$0.1M
The products that matter
recurring franchisor revenue
Franchise Fees & Royalties
$9.9M · ~80% of revenue
This is the real business. It produced $9.9M of the company's $12.4M revenue and grew 4.9% last year.
core engine
buffet and delivery franchise brand
Pizza Inn
3 new buffet units in Q2 2026
Pizza Inn is the brand management is leaning on. Three new buffet restaurants opened in Q2 2026, which matters when the whole company does just $12.4M in annual revenue.
unit growth watch
company-run restaurant sales
Company-Owned Restaurants
$2.5M · ~20% of revenue
This piece generated $2.5M and was flat last year. In human-speak: it isn't driving growth, and it shouldn't be the part of the story you pay up for.
smaller segment
Key numbers
31.7%
operating margin
Operating margin → what is left after running the business → so what: Rave keeps nearly $0.32 from every revenue dollar before taxes and interest.
$0M
long-term debt
Long-term debt → borrowed money due later → so what: this microcap is not dragging a debt backpack into a slowdown.
18.8%
return on capital
Return on capital → profit from the money tied up in the business → so what: Rave earns almost $0.19 for every $1 invested.
16.9x
trailing p/e
P/E → price divided by past earnings → so what: you are paying about 17 years of trailing profit for a no-debt franchisor.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $0M (0% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for RAVE right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $6M, up 106% vs. prior year, while EPS rose to $0.09.
The quarter looked huge against a tiny base. Revenue doubled from the prior-year period, and EPS climbed 125%, showing how hard this model can swing when franchise activity improves.
$6M
revenue
$0.09
eps
31.7%
operating margin
the number that mattered
The 106% revenue jump matters most because on a $12 million annual base, one strong quarter can reset how you value the whole company.
source: company earnings report, 2026
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What could go wrong
The top risk is franchisee health inside the Pizza Inn and Pie Five system.
high
Tiny scale
RAVE produced $12.4M in annual revenue and carries a market cap of about $37M. That leaves very little room for operational mistakes.
A few weak stores or delayed openings can hit results quickly.
high
Franchise concentration
About $9.9M of $12.4M revenue comes from franchise fees and royalties. If franchisees struggle, most of the model feels it.
This is asset-light when it works and exposed when it doesn't.
med
Low predictability, high volatility
Earnings predictability is 30 / 100 and price stability is 20 / 100. In human-speak: the numbers can move around, and the stock usually notices.
Expect sharper reactions to small updates than you would in a larger restaurant stock.
With $9.9M of $12.4M revenue tied to franchise fees and royalties, the combined risk picture is simple: the system has to keep stores open, profitable, and expanding.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Next earnings report
Estimated for May 7, 2026. You want to see whether the latest $0.6M profit holds or fades.
revenue mix
Franchise fees & royalties
This segment produced $9.9M, or about 80% of revenue. If that number stalls, the whole thesis gets weaker fast.
unit growth
Pizza Inn openings
Management opened three new buffet units in Q2 2026. The question is whether that was a start or a one-quarter burst.
stock behavior
Volatility vs. execution
A 20 / 100 price stability score means the stock can move before the business really changes. Separate noise from store-level progress.
Analyst rankings
earnings predictability
30 / 100
Earnings are hard to forecast here. In human-speak, analysts do not view this as a steady numbers story.
risk rank
3
Safer than about 50% of stocks on this system, but that middle-of-the-pack score does not erase the reality of microcap volatility.
price stability
20 / 100
The stock history is choppy. You're buying a small-cap situation, not a low-drama compounder.
source: institutional data
Institutional activity
institutional ownership data for RAVE is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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