Rave Restaurant GroupRAVE -2.13%79 ROE % is 20.01% as of Mar. 2026, which is 19% above its 10-year median of 16.84. 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 346 Restaurants companies, Rave Restaurant Group ranks better than 79.77% on this metric.
The historical rank and industry rank for Rave Restaurant Group's ROE % or its related term are showing as below:
RAVE'
s ROE % Range Over the Past 10 Years
Min: -341.1 Med: 16.84 Max: 90.62
Current: 19.7
During the past 13 years, Rave Restaurant Group's highest ROE % was 90.62%. The lowest was -341.10%. And the median was 16.84%.
RAVE's ROE % is ranked better than 79.77% of 346
companies
in the Restaurants industry
Industry Median: 6.38
vs RAVE: 19.70
Rave Restaurant Group (NAS:RAVE) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's ROE % distribution charts can be found below:
* The bar in red indicates where Rave Restaurant Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Rave Restaurant Group (RAVE) has a ROE % of 20.01% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rave Restaurant Group and its competitors. This is 19% above median its historical median of 16.84. According to the industry distribution chart, Rave Restaurant Group ranks #70 out of 346 companies in the Restaurants industry, placing it in the top 20.2%.
Is Rave Restaurant Group's ROE % too high?
Rave Restaurant Group's current ROE % of 20.01% is 19% above median its 10-year median of 16.84. The Restaurants industry median ROE % is 6.38. Rave Restaurant Group's value of 20.01% is 213.6% above this industry median. Based on the distribution chart, Rave Restaurant Group ranks #70 out of 346 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 ROE % compare to STKS and BDL?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #70 out of 346 companies for ROE %. This places Rave Restaurant Group in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 6.38. Rave Restaurant Group's value of 20.01% is 213.6% above this benchmark. While the company's 10-year median is 16.84 vs. the industry median of 6.38, 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 ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.38, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current ROE % of 20.01% is 213.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median ROE % is 6.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current ROE % is 20.01%, which is 19% above median its own 10-year median of 16.84. 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 ROE % is 20.01%, which is 19% above median its 10-year median of 16.84 and 213.6% above the Restaurants industry median of 6.38. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current ROE % is 20.01% 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:
ROE %: 20.01% (19% above median its 10-year median of 16.84)
GF Value™: $2.72 vs. price of $3.22 (18.4% above fair value)
Industry Position: 213.6% above the Restaurants median (#70 of 346)
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
ROE % 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 
