RAVE Restaurant Group (RAVE): Post-results takeaway

Latest earnings show that the Reimage program is working and the turnaround is turning

Disclaimer: Not financial advice

When we profiled RAVE Restaurant Group, our stance was measured. The company, a micro-cap franchisor operating Pizza Inn and Pie Five, has long relied on operational discipline, franchising, and the potential of the Pizza Inn “Reimage” program to drive SSS and unit growth. At the time, our view was that these levers were promising but largely unproven, and we recommended a “pass for now” stance until tangible proof emerged. We recently changed our stance to “Buy” from “Pass,” and will be initiating a small position in RAVE within our model portfolio.