RAVE - Amping Up
Despite the Recent 40% Rally Since September Still Highly Asymmetrical
What a fast-paced period for Rave Restaurant Group RAVE 0.00%↑. Following the recent updates regarding the buyback and the positive annual results, this article focuses on last week’s quarterly results for Q1’2025.
For context, please refer to my earlier articles:
Outline
TL;DR
Equity Summary
Q1 2025 Results
Valuation
My take
TL;DR
30% earnings growth was driven mostly by cost savings and interest income. Basically limited revenue growth currently.
Early signs that future revenue growth will come
On a steady state valuation, there is considerable upside even without considering future growth potential. The net cash situation provides protection in case of a consumer weakness period.