Rave Restaurant Group (Rave Restaurant Group) Gross Margin % : 69.77% (As of Dec. 2023)

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What is Rave Restaurant Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rave Restaurant Group's Gross Profit for the three months ended in Dec. 2023 was $1.95 Mil. Rave Restaurant Group's Revenue for the three months ended in Dec. 2023 was $2.79 Mil. Therefore, Rave Restaurant Group's Gross Margin % for the quarter that ended in Dec. 2023 was 69.77%.

The historical rank and industry rank for Rave Restaurant Group's Gross Margin % or its related term are showing as below:

RAVE' s Gross Margin % Range Over the Past 10 Years
Min: 6.61 Med: 59.22 Max: 69.28
Current: 67.2

During the past 13 years, the highest Gross Margin % of Rave Restaurant Group was 69.28%. The lowest was 6.61%. And the median was 59.22%.

RAVE's Gross Margin % is ranked better than
81.63% of 343 companies
in the Restaurants industry
Industry Median: 46.87 vs RAVE: 67.20

Rave Restaurant Group had a gross margin of 69.77% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rave Restaurant Group was 3.40% per year.

Rave Restaurant Group Gross Margin % Historical Data

The historical data trend for Rave Restaurant Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Rave Restaurant Group Gross Margin % Chart

Rave Restaurant Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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60.09

65.06

69.03

69.28

66.73

Rave Restaurant Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															69.75	67.54	69.72	62.06	69.77

Competitive Comparison of Rave Restaurant Group's Gross Margin %

For the Restaurants subindustry, Rave Restaurant Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Rave Restaurant Group's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rave Restaurant Group's Gross Margin % falls into.

Rave Restaurant Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Rave Restaurant Group's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	7.9	/	11.889
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11.889 - 3.956)	/	11.889
	=	66.73 %

Rave Restaurant Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1.9	/	2.792
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.792 - 0.844)	/	2.792
	=	69.77 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Rave Restaurant Group (NAS:RAVE) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Rave Restaurant Group had a gross margin of 69.77% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Rave Restaurant Group Gross Margin % Related Terms

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Rave Restaurant Group (Rave Restaurant Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Rave Restaurant Group Inc (NAS:RAVE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3551 Plano Parkway, The Colony, TX, USA, 75056

Website

https://www.raverg.com

Rave Restaurant Group Inc operates and franchises pizza buffet, delivery/carry-out, and express restaurants. It operates restaurants under the brand name, Pizza Inn, and Pie Five Pizza Company. It has three operating segments. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The company-owned restaurant segment includes sales and operating results for all company-owned restaurants. The Pizza Inn Franchising segment accounts for the company's revenue. Geographically, it generates the majority of the revenue from the United States.

Executives

Hallmark Insurance Co	other: See Note 1	777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Hallmark Specialty Insurance Co	other: See Note 1	777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
American Hallmark Insurance Co Of Texas	other: See Explanation	777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Brandon Solano	officer: Chief Executive Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Mark E Schwarz	director, 10 percent owner	5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Clinton Dayne Fendley	officer: Vice President - Finance	3551 PLANO PARKWAY, THE COLONY TX 75056
Burns Michael F Jr	officer: Chief Operating Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Andrea K. Allen	officer: Chief Acctg. & Admin. Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Robert W. Bafundo	officer: President	3551 PLANO PARKWAY, THE COLONY TX 75056
Scott Crane	officer: President & CEO	3551 PLANO PARKWAY, THE COLONY TX 75056
Brian Timothy Bares	director	12600 HILL COUNTRY BLVD, SUITE R-230, AUSTIN TX 78738
Timothy E Mullany	officer: Chief Financial Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Hammett William C Jr	director	CAMPBELL CENTRE, 8350 N CENTRAL EXPRESSWAY STE 1900, DALLAS TX 75206
Randall E. Gier	officer: President & CEO	3551 PLANO PARKWAY, THE COLONY TX 75056
Clinton J Coleman	director	C/O NEWCASTLE CAPITAL MANAGEMENT, L.P., 200 CRESCENT COURT, SUITE 1400, DALLAS TX 75201