Rave Restaurant GroupRAVE -2.13%79 Net Margin % is 24.82% as of Mar. 2026, which is 89% above its 10-year median of 13.11. 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 366 Restaurants companies, Rave Restaurant Group ranks better than 97.27% on this metric.
The historical rank and industry rank for Rave Restaurant Group's Net Margin % or its related term are showing as below:
RAVE'
s Net Margin % Range Over the Past 10 Years
Min: -47.93 Med: 13.11 Max: 75.02
Current: 23.19
RAVE's Net Margin % is ranked better than 97.27% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs RAVE: 23.19
Rave Restaurant Group (NAS:RAVE) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Rave Restaurant Group Net Margin % Related Terms
Rave Restaurant Group Net Margin % Historical Data
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The historical data trend for Rave Restaurant Group's Net 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.
For the Restaurants subindustry, Rave Restaurant Group's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Rave Restaurant Group's Net 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.
Rave Restaurant Group (RAVE) has a Net Margin % of 24.82% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Rave Restaurant Group and its competitors. This is 89% above median its historical median of 13.11. According to the industry distribution chart, Rave Restaurant Group ranks #10 out of 366 companies in the Restaurants industry, placing it in the top 2.7%.
Is Rave Restaurant Group's Net Margin % too high?
Rave Restaurant Group's current Net Margin % of 24.82% is 89% above median its 10-year median of 13.11. The Restaurants industry median Net Margin % is 2.06. Rave Restaurant Group's value of 24.82% is 1104.9% above this industry median. Based on the distribution chart, Rave Restaurant Group ranks #10 out of 366 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 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rave Restaurant Group's Net Margin % compare to STKS and BDL?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #10 out of 366 companies for Net Margin %. This places Rave Restaurant Group in the top 3% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.06. Rave Restaurant Group's value of 24.82% is 1104.9% above this benchmark. While the company's 10-year median is 13.11 vs. the industry median of 2.06, 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current Net Margin % of 24.82% is 1104.9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current Net Margin % is 24.82%, which is 89% above median its own 10-year median of 13.11. 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 Net Margin % is 24.82%, which is 89% above median its 10-year median of 13.11 and 1104.9% above the Restaurants industry median of 2.06. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current Net Margin % is 24.82% 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 $3.22 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:
Net Margin %: 24.82% (89% above median its 10-year median of 13.11)
GF Value™: $2.72 vs. price of $3.22 (18.4% above fair value)
Industry Position: 1104.9% above the Restaurants median (#10 of 366)
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.
79GF Score
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