Tasty Value: RAVE
The Right Ingredients For A Multi-Bagger
Introduction
Yes, the pun was intended. This article focuses on Rave Restaurant Group’s quarterly results for Q2’2025 announced last week. For reference, my previous update on RAVE 0.00%↑ was:
As a quality of life enhancement, I started tracking the company’s statistical indicators (from gurufocus.com) in a free Google Sheet. I will keep updating it as I report on the company and plan on implementing this also for other companies that I cover.
To save you some time, let me summarize the article: while the future is of course uncertain - and as a shareholder I am of course biased - I believe RAVE 0.00%↑ is a multi-bagger in the making. The current P/E of 15.5 does not scream bargain right away, but looks (and multiples) can be deceiving…
You can't judge an apple by looking at a tree
You can't judge honey by looking at the bee
You can't judge a daughter by looking at the mother
You can't judge a book by looking at the cover
Outline
TL;DR
Equity Summary
Q2 2025 Results
My Take & Valuation
Conclusion
TL;DR
This nano-cap continues to grow earnings and increases its development pipeline.
The net cash situation protects against periods of a softer economy.
It trades under a conservative earnings power value, i.e. without assuming any growth or heroics in capital allocation.