Rave Restaurant GroupRAVE -2.13%79 ROA % is 17.71% as of Mar. 2026, which is 54% above its 10-year median of 11.52. GuruFocus rates RAVE with a GF Score™ of 79/100 and a GF Value™ of $2.72 (Modestly Overvalued). Among 367 Restaurants companies, Rave Restaurant Group ranks better than 95.1% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Rave Restaurant Group's annualizedNet Income for the quarter that ended in Mar. 2026 was $3.20 Mil.
Rave Restaurant Group's average Total Assets over the quarter that ended in Mar. 2026 was $18.06 Mil. Therefore, Rave Restaurant Group's annualized ROA % for the quarter that ended in Mar. 2026 was 17.71%.
The historical rank and industry rank for Rave Restaurant Group's ROA % or its related term are showing as below:
RAVE'
s ROA % Range Over the Past 10 Years
Min: -89.06 Med: 11.52 Max: 50.36
Current: 17.15
During the past 13 years, Rave Restaurant Group's highest ROA % was 50.36%. The lowest was -89.06%. And the median was 11.52%.
RAVE's ROA % is ranked better than 95.1% of 367
companies
in the Restaurants industry
Industry Median: 2.15
vs RAVE: 17.15
Rave Restaurant Group (NAS:RAVE) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's ROA % distribution charts can be found below:
* The bar in red indicates where Rave Restaurant Group's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Rave Restaurant Group (RAVE) has a ROA % of 17.71% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Rave Restaurant Group and its competitors. This is 54% above median its historical median of 11.52. According to the industry distribution chart, Rave Restaurant Group ranks #18 out of 367 companies in the Restaurants industry, placing it in the top 4.9%.
Is Rave Restaurant Group's ROA % too high?
Rave Restaurant Group's current ROA % of 17.71% is 54% above median its 10-year median of 11.52. The Restaurants industry median ROA % is 2.15. Rave Restaurant Group's value of 17.71% is 723.7% above this industry median. Based on the distribution chart, Rave Restaurant Group ranks #18 out of 367 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 ROA % compare to STKS and BDL?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #18 out of 367 companies for ROA %. This places Rave Restaurant Group in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.15. Rave Restaurant Group's value of 17.71% is 723.7% above this benchmark. While the company's 10-year median is 11.52 vs. the industry median of 2.15, 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 ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.15, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current ROA % of 17.71% is 723.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median ROA % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current ROA % is 17.71%, which is 54% above median its own 10-year median of 11.52. 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 ROA % is 17.71%, which is 54% above median its 10-year median of 11.52 and 723.7% above the Restaurants industry median of 2.15. Rave Restaurant Group's overall GF Score™ is 79/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current ROA % is 17.71% 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:
ROA %: 17.71% (54% above median its 10-year median of 11.52)
GF Value™: $2.72 vs. price of $3.22 (18.4% above fair value)
Industry Position: 723.7% above the Restaurants median (#18 of 367)
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
Get the complete analysis for RAVE
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RAVE has been successfully added to your 
