RAVE (Rave Restaurant Group) Beneish M-Score: -2.34 (As of Jun. 25, 2026)


RAVE Rave Restaurant Group Inc RAVE
79 GF Score
Price $3.22
GF Value $2.72
Valuation Modestly Overvalued
! 1 Warning Sign
View Full Analysis

What is Rave Restaurant Group Beneish M-Score?

Rave Restaurant Group RAVE -2.13% 79 Beneish M-Score is -2.34 as of Jun. 25, 2026. GuruFocus rates RAVE with a GF Score™ of 79/100 and a GF Value™ of $2.72 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 357 Restaurants companies, Rave Restaurant Group ranks worse than 79.83% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Rave Restaurant Group's Beneish M-Score or its related term are showing as below:

RAVE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.05   Med: -2.51   Max: 3.91
Current: -2.34

During the past 13 years, the highest Beneish M-Score of Rave Restaurant Group was 3.91. The lowest was -5.05. And the median was -2.51.

Rave Restaurant Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Rave Restaurant Group's Beneish M-Score 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 Restaurant Group Beneish M-Score Chart

Rave Restaurant Group Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.60 3.40 -3.12 -2.45 -2.87

Rave Restaurant Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial 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 -2.88 -2.87 -2.85 -2.47 -2.34

RAVE vs STKS, BDL, ARKR: Beneish M-Score Comparison

For the Restaurants subindustry, Rave Restaurant Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Rave Restaurant Group's Beneish M-Score falls into.


RAVE
79GF Score
Rave Restaurant Group Inc RAVE
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rave Restaurant Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Rave Restaurant Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3034+0.528 * 0.9776+0.404 * 0.6839+0.892 * 1.032+0.115 * 0.7764
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9962+4.679 * -0.017814-0.327 * 0.7562
=-2.34

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $1.70 Mil.
Revenue was 3.223 + 3.042 + 3.213 + 3.154 = $12.63 Mil.
Gross Profit was 2.476 + 2.31 + 2.176 + 2.349 = $9.31 Mil.
Total Current Assets was $14.36 Mil.
Total Assets was $18.58 Mil.
Property, Plant and Equipment(Net PPE) was $0.38 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.49 Mil.
Selling, General, & Admin. Expense(SGA) was $5.53 Mil.
Total Current Liabilities was $1.66 Mil.
Long-Term Debt & Capital Lease Obligation was $0.01 Mil.
Net Income was 0.8 + 0.637 + 0.645 + 0.847 = $2.93 Mil.
Non Operating Income was 0 + 0.009 + 0.008 + 0 = $0.02 Mil.
Cash Flow from Operations was 1.136 + 0.306 + 0.608 + 1.193 = $3.24 Mil.
 Total Receivables was $1.27 Mil.
Revenue was 2.966 + 2.869 + 3.05 + 3.355 = $12.24 Mil.
Gross Profit was 2.198 + 2.04 + 2.055 + 2.527 = $8.82 Mil.
Total Current Assets was $10.25 Mil.
Total Assets was $15.71 Mil.
Property, Plant and Equipment(Net PPE) was $0.71 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.55 Mil.
Selling, General, & Admin. Expense(SGA) was $5.38 Mil.
Total Current Liabilities was $1.58 Mil.
Long-Term Debt & Capital Lease Obligation was $0.30 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1.703 / 12.632) / (1.266 / 12.24)
=0.134816 / 0.103431
=1.3034

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(8.82 / 12.24) / (9.311 / 12.632)
=0.720588 / 0.737096
=0.9776

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (14.36 + 0.378) / 18.581) / (1 - (10.248 + 0.712) / 15.711)
=0.206824 / 0.3024
=0.6839

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=12.632 / 12.24
=1.032

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.552 / (0.552 + 0.712)) / (0.486 / (0.486 + 0.378))
=0.436709 / 0.5625
=0.7764

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(5.533 / 12.632) / (5.382 / 12.24)
=0.438015 / 0.439706
=0.9962

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.013 + 1.664) / 18.581) / ((0.3 + 1.575) / 15.711)
=0.090253 / 0.119343
=0.7562

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2.929 - 0.017 - 3.243) / 18.581
=-0.017814

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Rave Restaurant Group has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.34 mean?
Rave Restaurant Group (RAVE) has a Beneish M-Score of -2.34 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Rave Restaurant Group and its competitors. According to the industry distribution chart, Rave Restaurant Group ranks #285 out of 357 companies in the Restaurants industry, placing it in the top 79.8%.
Is Rave Restaurant Group's Beneish M-Score too high?
Rave Restaurant Group's current Beneish M-Score is -2.34. Based on the distribution chart, Rave Restaurant Group ranks #285 out of 357 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Rave Restaurant Group has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rave Restaurant Group's Beneish M-Score compare to STKS and BDL?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #285 out of 357 companies for Beneish M-Score. This places Rave Restaurant Group in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Restaurants company?
A good Beneish M-Score depends on the Restaurants industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Rave Restaurant Group and its competitors. Rave Restaurant Group's current Beneish M-Score is -2.34. 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 $3.22 — trading 18.4% above its estimated fair value. The current Beneish M-Score is -2.34. Rave Restaurant Group's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current Beneish M-Score is -2.34 as of Jun. 25, 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 $3.22 is trading 18.4% above its estimated GF Value™ of $2.72. GuruFocus considers Rave Restaurant Group to be Modestly Overvalued.

Key valuation signals for RAVE:

  • Beneish M-Score: -2.34
  • GF Value™: $2.72 vs. price of $3.22 (18.4% above fair value)
  • GF Score™: 79/100 with 1 warning sign

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 Business Description

Address 3551 Plano Parkway, The Colony, TX, USA, 75056
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.
79GF Score

Get the complete analysis for RAVE

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$3.22
Price
$2.72
GF Value