Noodles & Company (NDLS) vs Rave Restaurant Group, Inc. (RAVE)

Noodles & Company and Rave Restaurant Group, Inc. are both Restaurants companies. Noodles & Company is the larger, with a market value of $77.0M against $37.1M — 2.1× the size. Noodles & Company has negative trailing earnings, so its P/E is not meaningful; Rave Restaurant Group, Inc. trades at 10.9×. Rave Restaurant Group, Inc. grew revenue faster over the last twelve months: 3.20% against 0.19%. Rave Restaurant Group, Inc. has the higher net margin (23.2% vs −4.71%) and the higher return on invested capital (55.8% vs −15.3%). Across the 19 metrics below, Rave Restaurant Group, Inc. leads on 12 and Noodles & Company on 7.

Valuation

Metric NDLS RAVE Restaurants median
P/E n/m 10.90 22.14
P/S 0.15 2.58 0.91
P/B n/m 1.98 2.01
Price to free cash flow 19.87 10.31 19.41
EV/EBITDA 16.40 4.73 11.48
EV/Sales 0.42 1.73 1.20
Earnings yield (31.80%) 9.17% 2.30%
Free cash flow yield 5.03% 9.70% 3.92%

Profitability

Metric NDLS RAVE Restaurants median
Gross margin 75.00% 73.71% 38.77%
Operating margin (2.58%) 28.84% 4.30%
Net margin (4.71%) 23.19% 1.85%
Free cash flow margin 0.76% 25.11% 3.12%
Return on equity 57.04% 19.66% 3.07%
Return on assets (8.80%) 17.08% 1.50%
Return on invested capital (15.33%) 55.80% 3.14%

Growth

Metric NDLS RAVE Restaurants median
Revenue growth (TTM) 0.19% 3.20% 5.16%
EPS growth (last fiscal year) (15.00%) 11.76% —
Revenue growth, 5-year CAGR 4.69% 3.72% 10.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NDLS RAVE Restaurants median
Debt to equity (2.05) 0.00 0.10
Current ratio 0.29 8.63 0.81
Net debt to EBITDA (29.34) (2.68) 0.43

Dividend

Metric NDLS RAVE Restaurants median
Dividend yield — — 2.32%
Payout ratio 0.00 0.00 0.00

Size

Metric NDLS RAVE Restaurants median
Market cap 77.03m 37.09m 482.66m

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