Rave Restaurant Group Inc

Zacks Investment Research highlights two microcap food companies with Outperform ratings that are weathering inflationary pressure on consumer discretionary spending. Dallas-based Rave Restaurant Group franchises Pizza Inn and Pie Five Pizza, with Pizza Inn driving growth through a 2.3% year-over-year same-store sales increase in the January quarter and plans to open 13 new locations over the next three quarters, while Pie Five represents only about 10% of total franchise revenue. BranchOut Food, a growth-stage consumer packaged food company, has landed major club store deals with initial sell-through exceeding expectations and expects a record revenue quarter in Q2 after a Q1 sales decline attributed to planned maintenance at its Peru facility. The company’s licensed GentleDry dehydration technology and proximity to fruit suppliers are cited as competitive advantages, though ongoing growth initiatives may require additional financing.