MeritValue

RAVE RESTAURANT GROUP, INC.

RAVEdata completeness 88%15 fiscal years on file
The thesis, from the filings

RAVE RESTAURANT GROUP, INC. earns about 32% on invested capital, far above its ~9% cost of capital, and has bought back 20% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $1.76 and $11.57 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$8.59M1$10.7M2$11.9M3$12.2M3$12M3
Net income$1.52M4$8.02M5$1.61M6$2.47M6$2.7M6
Operating cash flow$1.49M7$1.38M8$2.84M9$2.85M9$3.4M9
Capital expenditure$212,00010$66,00011$65,00012$76,00012$56,00012
Free cash flow (derived)$1.27M7$1.32M8$2.78M9$2.77M9$3.34M9
Total debt$250,00013$30,00014$014——
Cash & equivalents$8.33M15$7.72M16$5.33M17$2.89M18$2.86M18
Diluted shares18.1M18.0M15.9M14.6M14.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$9.72
your share of equity
Profit it earned you last year
$1.86
Free cash flow it threw off
$2.29
Debt you’d be carrying
—

10 shares is a claim on $9.72 of net worth that earned you $1.86 and generated $2.29 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
32% avg · 5y
FY21 —FY22 42%FY23 32%FY24 26%FY25 26%

It earned about 32% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−20% shares · 5y

Share count is down 20% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $1.76 and $11.57 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$11.57
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$2.78M
DCF · Growth Exit 5Y
$6.41
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$2.78M
Earnings Power Value
$1.76
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.47M
  • growthAssumed0.0%
Graham Number
$2.04
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $6.41
The three cases
Bear0.0%$2.92
Base20.0%$6.41
Bull20.0%$6.41

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-06-27 · accession 0001140361-22-034473 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-26 · accession 0001140361-23-044691 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-25 · accession 0001140361-25-036080 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-06-27 · accession 0001140361-22-034473 (NetIncomeLoss)
  5. 10-K · period ending 2022-06-26 · accession 0001140361-23-044691 (NetIncomeLoss)
  6. 10-K · period ending 2023-06-25 · accession 0001140361-25-036080 (NetIncomeLoss)
  7. 10-K · period ending 2021-06-27 · accession 0001140361-22-034473 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-06-26 · accession 0001140361-23-044691 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-06-25 · accession 0001140361-25-036080 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-06-27 · accession 0001140361-22-034473 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-06-26 · accession 0001140361-23-044691 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-06-25 · accession 0001140361-25-036080 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-06-27 · accession 0001140361-22-034473 (ShortTermBorrowings)
  14. 10-K · period ending 2022-06-26 · accession 0001140361-23-044691 (ShortTermBorrowings)
  15. 10-K · period ending 2021-06-27 · accession 0001140361-22-034473 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-06-26 · accession 0001140361-23-044691 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-06-25 · accession 0001140361-24-041977 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-06-30 · accession 0001140361-25-036080 (CashAndCashEquivalentsAtCarryingValue)