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Rave Restaurant GroupRAVE -0.45%80 3-Year ROIIC % is 1.02 as of Jun. 2025, which is 92% below its 10-year median of 12.08. 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 334 Restaurants companies, Rave Restaurant Group ranks worse than 55.99% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Rave Restaurant Group's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 1.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Rave Restaurant Group's 3-Year ROIIC % or its related term are showing as below:
RAVE's 3-Year ROIIC % is ranked worse than 55.99% of 334
companies
in the Restaurants industry
Industry Median: 3.905
vs RAVE: 1.02
Rave Restaurant Group (NAS:RAVE) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Rave Restaurant Group 3-Year ROIIC % Related Terms
Rave Restaurant Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Rave Restaurant Group's 3-Year ROIIC % 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 vs THCH, STKS, ARKR: 3-Year ROIIC % Comparison
For the Restaurants subindustry, Rave Restaurant Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Rave Restaurant Group's 3-Year ROIIC % falls into.
Rave Restaurant Group's 3-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 2.4377424 (Jun. 2025) - 2.479 (Jun. 2022) )
/
( 6.436 (Jun. 2025) - 10.472 (Jun. 2022) )
=
-0.0412576
/
-4.036
=
1.02%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Rave Restaurant Group (RAVE) has a 3-Year ROIIC % of 1.02 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Rave Restaurant Group and its competitors. This is 92% below median its historical median of 12.08. According to the industry distribution chart, Rave Restaurant Group ranks #187 out of 334 companies in the Restaurants industry, placing it in the top 56%.
Is Rave Restaurant Group's 3-Year ROIIC % too high?
Rave Restaurant Group's current 3-Year ROIIC % of 1.02 is 92% below median its 10-year median of 12.08. The Restaurants industry median 3-Year ROIIC % is 3.91. Rave Restaurant Group's value of 1.02 is 73.9% below this industry median. Based on the distribution chart, Rave Restaurant Group ranks #187 out of 334 companies in the Restaurants industry, which is below the industry midpoint. 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 3-Year ROIIC % compare to THCH and STKS?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #187 out of 334 companies for 3-Year ROIIC %. This places Rave Restaurant Group in the lower half of its industry. The industry median 3-Year ROIIC % is 3.91. Rave Restaurant Group's value of 1.02 is 73.9% below this benchmark. While the company's 10-year median is 12.08 vs. the industry median of 3.91, Rave Restaurant Group has consistently been below 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 3-Year ROIIC % for a Restaurants company?
The median 3-Year ROIIC % among Restaurants companies is 3.91, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current 3-Year ROIIC % of 1.02 is 73.9% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median 3-Year ROIIC % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current 3-Year ROIIC % is 1.02, which is 92% below median its own 10-year median of 12.08. 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 3-Year ROIIC % is 1.02, which is 92% below median its 10-year median of 12.08 and 73.9% below the Restaurants industry median of 3.91. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current 3-Year ROIIC % is 1.02 as of Jun. 2025. 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:
3-Year ROIIC %: 1.02 (92% below median its 10-year median of 12.08)
GF Value™: $2.74 vs. price of $3.30 (20.4% above fair value)
Industry Position: 73.9% below the Restaurants median (#187 of 334)
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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