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Rave Restaurant Group (Rave Restaurant Group) Owner Earnings per Share (TTM)

: 0.11 (As of Dec. 2023)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Rave Restaurant Group's Owner Earnings per Share (TTM) ended in Dec. 2023 was $0.11. It's Price-to-Owner-Earnings ratio for today is 18.82.


The historical rank and industry rank for Rave Restaurant Group's Owner Earnings per Share (TTM) or its related term are showing as below:

RAVE' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 2.61   Med: 15.56   Max: 1084.62
Current: 18


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Rave Restaurant Group was 1084.62. The lowest was 2.61. And the median was 15.56.


RAVE's Price-to-Owner-Earnings is ranked worse than
64.63% of 164 companies
in the Restaurants industry
Industry Median: 12.225 vs RAVE: 18.00

Rave Restaurant Group's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $0.04. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $0.13. It's PE Ratio ratio for today is 15.92.

Rave Restaurant Group's EPS without NRI for the three months ended in Dec. 2023 was $0.04. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $0.14. It's PE Ratio without NRI ratio for today is 15.33.


Rave Restaurant Group Owner Earnings per Share (TTM) Historical Data

The historical data trend for Rave Restaurant Group's Owner Earnings per Share (TTM) 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.

* Premium members only.

Rave Restaurant Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.32 -0.20 0.08 0.37 0.13

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
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.45 0.52 0.13 0.11 0.11

Competitive Comparison

For the Restaurants subindustry, Rave Restaurant Group's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings Distribution

For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Rave Restaurant Group's Price-to-Owner-Earnings falls into.



Rave Restaurant Group Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Rave Restaurant Group's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 1.90
Depreciation, Depletion and Amortization 0.66
Change In Deferred Tax 0.32
5Y Average of Maintenance Capital Expenditure 0.13
Change In Working Capital -1.09
Shares Outstanding (Diluted Average) 14.47

1. Start with "Net Income" from income statement. Rave Restaurant Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1.90 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Rave Restaurant Group's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2023 was $0.66 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Rave Restaurant Group's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2023 was $0.32 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $0.13 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Rave Restaurant Group's 5-Year Average Maintenance Capital Expenditure = $0.13 Mil

5. "Change In Working Capital" is from cashflow statement. Rave Restaurant Group's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2023 was $-1.09 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Rave Restaurant Group's Shares Outstanding (Diluted Average) for the months ended in Dec. 2023 was 14.465 Mil.

Rave Restaurant Group's Onwer Earnings Per Share for Dec. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 1.897 +0.661+0.319
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-0.13323633105856+-1.088)/14.465
=0.11

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=2.07/0.11
=18.82

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Rave Restaurant Group Owner Earnings per Share (TTM) Related Terms

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Rave Restaurant Group (Rave Restaurant Group) Business Description

Traded in Other Exchanges
N/A
Address
3551 Plano Parkway, The Colony, TX, USA, 75056
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

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