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RAVE Restaurant Group (NASDAQ:RAVE) Shareholders Booked A 87% Gain In The Last Year

Simply Wall St

Some RAVE Restaurant Group, Inc. (NASDAQ:RAVE) shareholders are probably rather concerned to see the share price fall 41% over the last three months. But that doesn't change the fact that the returns over the last year have been pleasing. Looking at the full year, the company has easily bested an index fund by gaining 87%.

View our latest analysis for RAVE Restaurant Group

Given that RAVE Restaurant Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

RAVE Restaurant Group actually shrunk its revenue over the last year, with a reduction of 3.2%. Despite the lack of revenue growth, the stock has returned a solid 87% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

NasdaqCM:RAVE Income Statement, December 23rd 2019

This free interactive report on RAVE Restaurant Group's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that RAVE Restaurant Group shareholders have received a total shareholder return of 87% over the last year. There's no doubt those recent returns are much better than the TSR loss of 25% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.