Rave Restaurant GroupRAVE +5.88%76 Gross Margin % is 76.82% as of Mar. 2026, which is 17% above its 10-year median of 65.90. GuruFocus rates RAVE with a GF Score™ of 76/100 and a GF Value™ of $2.72 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 358 Restaurants companies, Rave Restaurant Group ranks better than 94.41% on this metric.
RAVE's Gross Margin % is ranked better than 94.41% of 358
companies
in the Restaurants industry
Industry Median: 45.685
vs RAVE: 73.71
Rave Restaurant Group had a gross margin of 76.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rave Restaurant Group was 1.40% per year.
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 76.82% for the quarter that ended in Mar. 2026 => 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
Rave Restaurant Group Gross Margin % Historical Data
* Premium members only.
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.
RAVE vs STKS, BDL, ARKR: Gross Margin % Comparison
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 Gross Margin % vs 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.
* 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.
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 (RAVE) has a Gross Margin % of 76.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rave Restaurant Group and its competitors. This is 17% above median its historical median of 65.90. Over the past decade, Rave Restaurant Group's Gross Margin % has ranged from 6.61 to 73.71. According to the industry distribution chart, Rave Restaurant Group ranks #20 out of 358 companies in the Restaurants industry, placing it in the top 5.6%.
Is Rave Restaurant Group's Gross Margin % too high?
Rave Restaurant Group's current Gross Margin % of 76.82% is 17% above median its 10-year median of 65.90. Over the past 10 years, this metric has ranged from a low of 6.61 to a high of 73.71. The Restaurants industry median Gross Margin % is 45.69. Rave Restaurant Group's value of 76.82% is 68.2% above this industry median. Based on the distribution chart, Rave Restaurant Group ranks #20 out of 358 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Rave Restaurant Group has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rave Restaurant Group's Gross Margin % compare to STKS and BDL?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #20 out of 358 companies for Gross Margin %. This places Rave Restaurant Group in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 45.69. Rave Restaurant Group's value of 76.82% is 68.2% above this benchmark. Historically, Rave Restaurant Group's own Gross Margin % has ranged from 6.61 to 73.71 over the past decade. While the company's 10-year median is 65.90 vs. the industry median of 45.69, Rave Restaurant Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current Gross Margin % of 76.82% is 68.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current Gross Margin % is 76.82%, which is 17% above median its own 10-year median of 65.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rave Restaurant Group stock overvalued right now?
Based on GuruFocus' analysis, Rave Restaurant Group (RAVE) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.72, compared to a current price of $3.40 — trading 25% above its estimated fair value. The current Gross Margin % is 76.82%, which is 17% above median its 10-year median of 65.90 and 68.2% above the Restaurants industry median of 45.69. Rave Restaurant Group's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current Gross Margin % is 76.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rave Restaurant Group (RAVE) Overvalued in 2026?
Based on GuruFocus' analysis, Rave Restaurant Group stock appears to be overvalued.
The current stock price of $3.40 is trading 25% above its estimated GF Value™ of $2.72.
GuruFocus considers Rave Restaurant Group to be Modestly Overvalued.
Key valuation signals for RAVE:
Gross Margin %: 76.82% (17% above median its 10-year median of 65.90)
GF Value™: $2.72 vs. price of $3.40 (25% above fair value)
Industry Position: 68.2% above the Restaurants median (#20 of 358)
No single metric tells the full story. See the RAVE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rave Restaurant Group Inc operates and franchises pizza buffet, delivery/carry-out, express restaurants, and ghost kitchens. It operates restaurants under the brand name, Pizza Inn, and Pie Five Pizza Company. It has three operating segments. The Pizza Inn Franchising and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The corporate administration and other segments. The Pizza Inn Franchising segment accounts for the majority of the company's revenue. Geographically, it generates the majority of the revenue from the United States.
76GF Score
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