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Rave Restaurant GroupRAVE -0.45%80 ROC (Joel Greenblatt) % is 283.77% as of Mar. 2026, which is 1126% above its 10-year median of 23.14. GuruFocus rates RAVE with a GF Score™ of 80/100 and a GF Value™ of $2.74 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 362 Restaurants companies, Rave Restaurant Group ranks better than 98.07% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Rave Restaurant Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 283.77%.
The historical rank and industry rank for Rave Restaurant Group's ROC (Joel Greenblatt) % or its related term are showing as below:
RAVE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -132.05 Med: 23.14 Max: 355
Current: 330.54
During the past 13 years, Rave Restaurant Group's highest ROC (Joel Greenblatt) % was 355.00%. The lowest was -132.05%. And the median was 23.14%.
RAVE's ROC (Joel Greenblatt) % is ranked better than 98.07% of 362
companies
in the Restaurants industry
Industry Median: 8.545
vs RAVE: 330.54
Rave Restaurant Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Rave Restaurant Group (NAS:RAVE) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Rave Restaurant Group ROC (Joel Greenblatt) % Related Terms
Rave Restaurant Group ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Rave Restaurant Group's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
RAVE vs THCH, STKS, ARKR: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, Rave Restaurant Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Rave Restaurant Group's ROC (Joel Greenblatt) % falls into.
Rave Restaurant Group ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 283.77% mean?
Rave Restaurant Group (RAVE) has a ROC (Joel Greenblatt) % of 283.77% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Rave Restaurant Group and its competitors. This is 1126% above median its historical median of 23.14. According to the industry distribution chart, Rave Restaurant Group ranks #7 out of 362 companies in the Restaurants industry, placing it in the top 1.9%.
Is Rave Restaurant Group's ROC (Joel Greenblatt) % too high?
Rave Restaurant Group's current ROC (Joel Greenblatt) % of 283.77% is 1126% above median its 10-year median of 23.14. The Restaurants industry median ROC (Joel Greenblatt) % is 8.55. Rave Restaurant Group's value of 283.77% is 3220.9% above this industry median. Based on the distribution chart, Rave Restaurant Group ranks #7 out of 362 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 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rave Restaurant Group's ROC (Joel Greenblatt) % compare to THCH and STKS?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #7 out of 362 companies for ROC (Joel Greenblatt) %. This places Rave Restaurant Group in the top 2% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.55. Rave Restaurant Group's value of 283.77% is 3220.9% above this benchmark. While the company's 10-year median is 23.14 vs. the industry median of 8.55, 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 ROC (Joel Greenblatt) % for a Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.55, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current ROC (Joel Greenblatt) % of 283.77% is 3220.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current ROC (Joel Greenblatt) % is 283.77%, which is 1126% above median its own 10-year median of 23.14. 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 $2.74, compared to a current price of $3.30 — trading 20.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 283.77%, which is 1126% above median its 10-year median of 23.14 and 3220.9% above the Restaurants industry median of 8.55. Rave Restaurant Group's overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current ROC (Joel Greenblatt) % is 283.77% 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 $3.30 is trading 20.4% above its estimated GF Value™ of $2.74.
GuruFocus considers Rave Restaurant Group to be Modestly Overvalued.
Key valuation signals for RAVE:
ROC (Joel Greenblatt) %: 283.77% (1126% above median its 10-year median of 23.14)
GF Value™: $2.74 vs. price of $3.30 (20.4% above fair value)
Industry Position: 3220.9% above the Restaurants median (#7 of 362)
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.
80GF Score
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