Is RAVE RESTAURANT GROUP, INC. (RAVE) Halal?

NASDAQ Consumer Cyclical United States $36M
✓ HALAL
Confidence: 95/100
RAVE RESTAURANT GROUP, INC. (RAVE) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 1.4% against the AAOIFI threshold of 30%, RAVE RESTAURANT GROUP, INC. comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Restaurants), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.4%
/ 30%
24.7%
/ 30%
3.0%
/ 30%
0.0%
/ 5%
✓ HALAL
DJIM 1.4%
/ 33%
24.7%
/ 33%
3.0%
/ 33%
0.0%
/ 5%
✓ HALAL
MSCI 3.5%
/ 33%
59.7%
/ 33%
7.3%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
S&P 1.4%
/ 33%
24.7%
/ 33%
3.0%
/ 33%
0.0%
/ 5%
✓ HALAL
FTSE 3.5%
/ 33%
59.7%
/ 33%
7.3%
/ 50%
0.0%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
12.7
Forward: -16.9
EPS
$0.20
P/B Ratio
2.3
EV/EBITDA
7.0
EV: $26M
Revenue
$12M
Growth: 6.0%
Beta
0.3
Low volatility
Current Ratio
8.5

Profitability

Gross Margin 73.0%
Operating Margin 24.4%
Net Margin 23.0%
Return on Equity (ROE) 19.5%
Return on Assets (ROA) 12.9%

Cash Flow & Balance Sheet

Operating Cash Flow$3M
Free Cash Flow$3M
Total Debt$576,000
Debt-to-Equity2.5
Current Ratio8.5
Total Assets$17M

Price & Trading

Last Close$2.59
50-Day MA$2.98
200-Day MA$2.96
Avg Volume29K
Beta0.3
52-Week Range
$2.01
$3.75

About RAVE RESTAURANT GROUP, INC. (RAVE)

CEO
Mr. Brandon L. Solano
Employees
24
Sector
Consumer Cyclical
Industry
Restaurants
Country
United States
Exchange
NASDAQ
Market Cap
$36M
Currency
USD

Rave Restaurant Group, Inc., through its subsidiaries, engages in the operation and franchising of pizza buffet, delivery and carry-out, express restaurants, and ghost kitchens under the Pizza Inn and Pie Five trademarks in the United States and internationally. It operates through Pizza Inn Franchising, Pie Five Franchising and Other segments. The company's buffet restaurants offer dine-in, carryout, and catering services, as well as delivery services; delivery/carry-out units provide delivery and carryout services; and express units serve customers through various non-traditional points of sale. It also operates Pizza Inn Express restaurants that serves customers through a non-traditional, licensed, pizza-only model called Pizza Inn Express; and Pizza Inn Ghost Kitchen units serves through online third-party delivery companies. In addition, the company operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks; and licenses pizza kiosk under the Pizza Inc trademark. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.

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Frequently Asked Questions

Is RAVE RESTAURANT GROUP, INC. (RAVE) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), RAVE RESTAURANT GROUP, INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is RAVE RESTAURANT GROUP, INC.'s debt ratio?

RAVE RESTAURANT GROUP, INC.'s debt ratio is 1.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 3.5%.

What are RAVE RESTAURANT GROUP, INC.'s key financial metrics?

RAVE RESTAURANT GROUP, INC. has a market capitalization of $36M, trailing P/E ratio of 12.7, and revenue of $12M. The company maintains a gross margin of 73.0% and a net margin of 23.0%. Return on equity stands at 19.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.