RAVE (Rave Restaurant Group) ROCE %: 23.25% (As of Mar. 2026)

What is Rave Restaurant Group ROCE %?

Rave Restaurant Group RAVE -2.13% 79 ROCE % is 23.25% as of Mar. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Rave Restaurant Group's annualized ROCE % for the quarter that ended in Mar. 2026 was 23.25%.

Rave Restaurant Group (NAS:RAVE) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Rave Restaurant Group ROCE % Related Terms

Rave Restaurant Group ROCE % Historical Data

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The historical data trend for Rave Restaurant Group's ROCE % 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 ROCE % Chart

Rave Restaurant Group Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

ROCE %

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19.78

19.85

15.59

22.75

22.83

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
ROCE %	Get a 7-Day Free Trial															23.74	31.44	19.92	18.90	23.25

79GF Score

Rave Restaurant Group Inc RAVE

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Rave Restaurant Group ROCE % Calculation

Rave Restaurant Group's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2025 )		(A: Jun. 2024 )		(A: Jun. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2025 )		(A: Jun. 2024 )		(A: Jun. 2025 )
	=	3.266	/	( ( (15.819 - 2.019)	+	(16.557 - 1.74) )	/ 2 )
	=	3.266	/	( (13.8	+	14.817)	/ 2 )
	=	3.266	/	14.3085
	=	22.83 %

Rave Restaurant Group's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	3.828	/	( ( (17.547 - 1.53)	+	(18.581 - 1.664) )	/ 2 )
	=	3.828	/	( ( 16.017	+	16.917 )	/ 2 )
	=	3.828	/	16.467
	=	23.25 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 23.25% mean?

Rave Restaurant Group (RAVE) has a ROCE % of 23.25% as of Mar. 2026.

Is Rave Restaurant Group's ROCE % too high?

Rave Restaurant Group's current ROCE % is 23.25%. The Restaurants industry median ROCE % is 6.01. Rave Restaurant Group's value of 23.25% is 286.9% above this industry median. 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 ROCE % compare to STKS and BDL?

Rave Restaurant Group's ROCE % of 23.25% can be compared against companies in the Restaurants industry. The industry median ROCE % is 6.01. Rave Restaurant Group's value of 23.25% is 286.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Restaurants company?

The median ROCE % among Restaurants companies is 6.01, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current ROCE % of 23.25% is 286.9% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median ROCE % is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current ROCE % is 23.25%. 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 ROCE % is 23.25% and 286.9% above the Restaurants industry median of 6.01. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current ROCE % is 23.25% 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:

ROCE %: 23.25%
GF Value™: $2.72 vs. price of $3.22 (18.4% above fair value)
GF Score™: 79/100 with 1 warning sign
Industry Position: 286.9% above the Restaurants median

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

Industry Consumer Cyclical Restaurants

Comparable Companies STKS BDL ARKR THCH REBN CCHH GTIM MHGU PETZ NDLS MCD SBUX LSE:CPG CMG YUM TSX:QSR TSX:QSP.UN DRI YUMC TXRH

Address 3551 Plano Parkway, The Colony, TX, USA, 75056

Website https://www.raverg.com

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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$3.22

Price

$2.72

GF Value

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