RICK Stock Recent News

RCI Hospitality (RICK) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

RICK's second-quarter fiscal 2025 top line is hurt by Bombshells and Nightclubs' dismal sales.

HOUSTON--(BUSINESS WIRE)--RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced closing on the acquisition of Platinum West Gentlemen's Club in West Columbia, South Carolina, the only upscale adult nightclub in the central part of the state. The purchase price totaled $8.0 million, consisting of $3.75 million cash and $2.5 million seller financing at 7% for the club, and $1.75 million cash for associated real estate. The purchase price is in line with RCI's acquisition valuation target.

RCI Hospitality has dipped to trade at close to a record low multiple to sales. The company's 5-year plan aims to generate $250 million of cumulative free cash flow and buy back at least 1.42 million of its common shares. Bombshells are being optimized, with new capital spend in the segment is set to be muted. Free cash flow will be directed to grow the footprint of nightclubs.

RCI Hospitality Holdings, Inc.'s Q1 earnings showed mixed performance, with nightclub sales slightly up but Bombshell Restaurants dragging overall revenue down. The company is improving operational efficiency by closing underperforming restaurants, which should boost profitability in the long term. Despite a high debt-to-cash ratio, the RICK's interest coverage ratio of 3.3x suggests manageable debt, though it's on the riskier side.

Human vices like alcohol, tobacco, and sex persist; companies in these industries remain profitable and offer attractive dividends despite societal disapproval. The tobacco industry is in slow decline but still profitable; British American Tobacco, Altria, and Philip Morris offer high dividends and are transitioning to less harmful products. Alcohol consumption remains high despite narratives of decline; Brown-Forman and Constellation Brands are undervalued with strong fundamentals and dividends.

RCI Hospitality (RICK) witnesses a hammer chart pattern, indicating support found by the stock after losing some value lately. This coupled with an upward trend in earnings estimate revisions could mean a trend reversal for the stock in the near term.

PFIS, CATY and RICK made it to the Zacks Rank #1 (Strong Buy) value stocks list on February 31, 2024.

RCI Hospitality (RICK) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

RCI Hospitality Holdings, Inc. (RICK) Q1 2025 Earnings Call Transcript