RCI Hospitality Holdings (RICK) Stock Overview
Through its subsidiaries, engages in the hospitality and related businesses in the United States. More details
| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 0/6 |
| Financial Health | 0/6 |
| Dividends | 2/6 |
RICK Community Fair Values
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Analyst Price Targets
RCI Hospitality Holdings, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$25.37 |
| 52 Week High | US$43.10 |
| 52 Week Low | US$20.76 |
| Beta | 0.76 |
| 1 Month Change | 1.40% |
| 3 Month Change | 14.64% |
| 1 Year Change | -36.94% |
| 3 Year Change | -66.86% |
| 5 Year Change | -65.18% |
| Change since IPO | 189.94% |
Recent News & Updates
Recent updates
Seeking Alpha • May 09
RCI Hospitality: A Long Overdue Downgrade As Traffic Declines
Summary RCI Hospitality Holdings, Inc. reported weak Q1 results across segments. RICK's organic nightclub revenues are on a decline, as young people drink less alcohol. The trend pressures RICK's earnings significantly. Bombshells hasn't stabilized yet despite significant turnaround efforts. The segment turned to an operating loss in Q1. Deteriorating earnings require a much lower valuation. I estimate RICK stock to have -25% downside to $18.9. Read the full article on Seeking AlphaAnalysis Article • Sep 18
Little Excitement Around RCI Hospitality Holdings, Inc.'s (NASDAQ:RICK) Earnings As Shares Take 29% Pounding
RCI Hospitality Holdings, Inc. ( NASDAQ:RICK ) shareholders that were waiting for something to happen have been dealt a...Analysis Article • Sep 06
RCI Hospitality Holdings (NASDAQ:RICK) Has Affirmed Its Dividend Of $0.07
The board of RCI Hospitality Holdings, Inc. ( NASDAQ:RICK ) has announced that it will pay a dividend on the 30th of...Analysis Article • Aug 11
Here's Why Some Shareholders May Not Be Too Generous With RCI Hospitality Holdings, Inc.'s (NASDAQ:RICK) CEO Compensation This Year
NasdaqGM:RICK 1 Year Share Price vs Fair Value Explore RCI Hospitality Holdings's Fair Values from the Community and...Analysis Article • May 20
Investors Can Find Comfort In RCI Hospitality Holdings' (NASDAQ:RICK) Earnings Quality
Soft earnings didn't appear to concern RCI Hospitality Holdings, Inc.'s ( NASDAQ:RICK ) shareholders over the last...Seeking Alpha • Mar 26
RCI Hospitality: Profitability Improvements Are Welcome
Summary 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. Uncertainty in the economy and potential tariffs make me cautious; I prefer to wait and see how the company performs in the next few quarters. Read the full article on Seeking AlphaSeeking Alpha • Jan 10
RCI Hospitality: Back To Basics
Summary RCI Hospitality's new "Back-to-Basics" strategy focuses on improving performance, divesting underperforming Bombshells locations, and refocusing on the primary club acquisition strategy and share buybacks. Recent performance has shown a return to comparable growth in nightclubs, but the remaining Bombshells have continued to lag in sales. With RCI Hospitality's financial targets, including $400 million in FY2029 sales and $75 million in free cash flow, I estimate 26% upside to a fair value of $70.8. Read the full article on Seeking AlphaAnalysis Article • Nov 07
Capital Allocation Trends At RCI Hospitality Holdings (NASDAQ:RICK) Aren't Ideal
There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...Seeking Alpha • Oct 24
RCI Hospitality: 3 Themes To Watch Into 2025
Summary RCI Hospitality has been under pressure amid weak sales, pressuring margins. The company's latest update shows signs of a recovery in core nightclub same-store sales as a positive signal into 2025. The stock offers good value as a potential turnaround pick. Read the full article on Seeking Alpha
New Narrative • Sep 24
Strategic Overhaul Poised To Elevate Margins And Shareholder Value
Introduction of a Back to Basics strategy and strategic refocusing indicates a shift towards operational efficiency and prioritization of high-revenue projects.Seeking Alpha • Aug 09
RCI Hospitality Q3: Signs Of Bombshells Segment Stabilization, Finally
Summary RCI Hospitality Holdings, Inc. reported its Q3 financials, showing a return to SSS growth in Nightclubs and stabilization in Bombshells. Underlying profitability stayed quite good, with Nightclubs' lower service sales having a bad impact but cost savings in Bombshells showing a good earnings improvement sequentially. The company is clearly focusing on its core operational competencies with the withdrawal of casino licenses. RCI Hospitality's stock still trades at an attractive level. Read the full article on Seeking AlphaAnalysis Article • Jul 12
Here's What To Make Of RCI Hospitality Holdings' (NASDAQ:RICK) Decelerating Rates Of Return
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...Seeking Alpha • Jun 17
RCI Hospitality: Short-Term Weakness, Mid-Term Opportunity (Rating Upgrade)
Summary RCI Hospitality's short-term growth outlook has weakened with a continued bad Bombshells performance and weaker same-store sales in nightclubs. The company's continued aggressive location development and acquisitions, and initiated Bombshells improvements still reflect great mid-term revenue and earnings growth potential. The weaker stock price reflects short-term weakness, but as the long-term growth story stands nearly as strong, the valuation has become attractive. Read the full article on Seeking AlphaSeeking Alpha • Apr 10
RCI Hospitality: Expanding Into New Markets
Summary RCI Hospitality Holdings has a share price that is currently undervalued at $55.83 versus a price target of $64.80 a share when considering its normal business operations. The company's two new casinos in Central City, CO, are expected to significantly add to RICK's revenue. With the addition of two new casinos, RCI Hospitality Holdings could have its share price target set somewhere between $72.83 and $88.03 a share. Read the full article on Seeking AlphaSeeking Alpha • Mar 05
RCI Hospitality: An Opportunistic Capital Allocation Strategy
Summary RCI Hospitality operates nightclubs and sports-bar restaurants with a long track record of value-creating acquisitions and organic growth initiatives, as well as stock buybacks. The company has also been able to have high and stable margins in part due to RCI Hospitality owning the majority of the real estate in which it operates. RCI Hospitality's great capital allocation strategy creates room for long-term appreciation, but I currently see only very slim upside for the stock with the current valuation. Read the full article on Seeking AlphaAnalysis Article • Feb 15
Some Investors May Be Willing To Look Past RCI Hospitality Holdings' (NASDAQ:RICK) Soft Earnings
Shareholders appeared unconcerned with RCI Hospitality Holdings, Inc.'s ( NASDAQ:RICK ) lackluster earnings report last...Analysis Article • Jan 04
Market Participants Recognise RCI Hospitality Holdings, Inc.'s (NASDAQ:RICK) Earnings
RCI Hospitality Holdings, Inc.'s ( NASDAQ:RICK ) price-to-earnings (or "P/E") ratio of 19.8x might make it look like a...Analysis Article • Dec 15
Is RCI Hospitality Holdings (NASDAQ:RICK) A Risky Investment?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...Analysis Article • Oct 15
RCI Hospitality Holdings (NASDAQ:RICK) Hasn't Managed To Accelerate Its Returns
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...Analysis Article • Dec 19
RCI Hospitality Holdings, Inc.'s (NASDAQ:RICK) Intrinsic Value Is Potentially 28% Above Its Share Price
How far off is RCI Hospitality Holdings, Inc. ( NASDAQ:RICK ) from its intrinsic value? Using the most recent financial...Analysis Article • Dec 08
Does RCI Hospitality Holdings (NASDAQ:RICK) Have A Healthy Balance Sheet?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...Analysis Article • Oct 14
The Return Trends At RCI Hospitality Holdings (NASDAQ:RICK) Look Promising
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...Seeking Alpha • Oct 11
RCI Hospitality's Q4 revenue rise double-digit despite soft bombshells season
RCI Hospitality Holdings (NASDAQ:RICK) reported Tuesday a 28.8% jump in nightclubs and bombshells restaurants sales to reach $70M in the three months to September. The segment break-up showed nightclubs sales rose 40.4% as new club acquisitions contributed sales of $14.9M during the quarter, while there was a drop of 3.6% at bombshells restaurants and bars business when compared with a year ago revenue. "Fourth quarter Nightclub sales benefited from same-store growth and acquisitions. Bombshells had a soft July, but sales improved through the quarter and were up 7.4% year-over-year in September," said RCI President and CEO Eric Langan. The company ended the year with $35.6M in cash and cash equivalents after accounting for the $3M buybacks made in fourth quarter and $12.6M spent to acquire clubs and property for new Bombshells locations. "As sales return to traditional seasonal patterns, we look forward to a strong 1Q23," added Langan. Stock is up 1%.Seeking Alpha • Oct 05
A Deep Dive Into RCI Hospitality
Summary RICK is the preferred acquirer of nightclubs and there is a long runway, given the sheer number of clubs in the U.S. Bombshells have an operating margin that is on par with established peers in the restaurant industry. Management has the perfect playbook to execute and grow both nightclubs and Bombshells. Its cash-generative business is best shown in its high free cash flow margin. I believe RICK is a compelling investment for investors to consider. Investment Thesis Back in Oct 2022, I wrote an update on RICK's 2Q22 earning results, talking about the management's great execution. However, I'd also like to do a deep dive into the company to share my thoughts on why I own shares, as well as a way to revisit my investment thesis. My thesis is that RCI Hospitality (NASDAQ: RICK) is the prime consolidator of nightclubs due to its favorable capital structure, as it is the only publicly listed nightclub company and it owns the underlying real estate of its clubs. The sports bar and restaurant business, Bombshells, has an operating margin that has similar, or if not, higher than some of the established restaurant peers, and they continue to expand through building more units in class A locations and franchising. RICK's management has the perfect playbook to roll up the nightclub industry and expands its highly profitable Bombshells, resulting in an extremely cash-generative company best demonstrated by its growing free cash flow. With a long runway, cash is constantly reinvested to acquire more clubs and build more bombshell units, which also means there is little to no reinvestment risk. I believe the current valuation is priced attractively for long-term investors to consider. Nightclubs Rolling Up The Nightclubs Industry In the U.S., it is nearly impossible for anyone to build new nightclubs as very few states issue any licenses, and the only way to own one is through acquisitions. To acquire one, one needs to acquire the club along with the real estate, as the grandfathered licenses are tied to real estate. Owning the real estate with the licenses is a strong competitive advantage because - (1) there is little to no competition as you are the only sole operator owning the license, and (2) it is a hedge against inflation as high rental costs can be huge expenses for retailers, and (3) acts as a collateral to raise capital from the bank. Some of those clubs are established as early as the 1990s, so they are placed at excellent locations, and are proven and highly cash-generative. These are the kind of clubs RICK's management is acquiring. The internal motivation driving owners to sell their clubs is due to their old age, and they are heading for retirement. They are demanding large upfront cash payments and/or consistent, reliable annual payments, and a strong operator who knows how to manage a nightclub. As RICK is the only publicly listed company in the industry, it has access to capital that peers do not, including access to bank financing and equities. Whereas, other peers use mainly owner financing and put very little cash down, making it less enticing. Furthermore, with RICK's CEO Eric Langan's long history of being in the industry since he was 20 and the company's strong revenue and free cash flow ("FCF"), all of these factors, collectively, make them the preferred acquirer. According to CEO Eric, peers like Deja Vu and Spearmint Rhino have started way earlier than RICK but are still the same size as they were before. RICK 3Q22 Investor Presentation RICK typically acquires clubs at 3x to 5x adjusted EBITDA (extremely low multiple), and these deals tend to generate an annual cash-on-cash return of 25% to 33%. What this typically means is that these acquisitions pay themselves in 3 to 4 years (1/25% or 1/33%), and in some cases, certain deals can generate 50% to 70% cash-on-cash returns. The largest deal they did was the Lowrie deal, which was acquired at 5x adjusted EBITDA and it was financed using a mix of debt and equity. During the 2Q22 earnings call, an institutional investor of RICK, the company could not have gone through with the deal if the stock had not traded at a high multiple. Shares are an incredibly important currency, and since RICK is a sin stock, its multiples may be capped, and that could prevent such large acquisitions from going through in the future. This is something for investors to note. Highly Profitable Clubs RICK 10-K & 10-Q RICK 10-K & 10-Q Due to the nature of the business, nightclubs are extremely profitable with an operating margin of 45% as of LTM FY22 and 41.4% as of the latest quarter, 3Q22. This is because its high-margin service revenue, consisting of VIP spending, and high-margin alcohol revenue make up more than 80% of its total club revenue. It is also not expensive to keep a club running as capital expenditures such as carpets, chairs, and sound equipment typically do not require much maintenance. Moreover, upon acquiring new clubs, RICK's management utilized their expertise to put in best practices, control systems, and processes to maximize the profitability of these clubs. Long Runway To Grow While RICK is well positioned to roll up the industry, one important question to ask is how long can RICK continue to grow. CEO Eric Langan stated there are 2,000 clubs in the U.S: "...we expect to achieve significant growth acquiring more clubs now which estimate that there's about 2000 legal clubs in the US…500 of those clubs meet our qualifications for acquisition it's a very highly fragmented industry, and we are one of the largest player largest players, but our market shares and then Many club owners are at an age where do you want to sell and we believe that we are the fire of choice, we believe that we are the best-capitalized entity in the industry and we're generally able to give sellers more upfront cash than our competitors." With RICK having a total of 49 clubs today or only making up 2% of the total clubs in the U.S., RICK has a massive opportunity to consolidate the fragmented industry, and the risk of running into reinvestment risk is incredibly low. This combination of being the preferred acquirer and long runway makes this a compelling investment in the long run. However, as RICK scales larger, it has to do larger acquisitions to maintain its growth rates, which represents execution risk. Fairly Resilient Business Despite Poor Economic Outlook During a recession, consumer discretionary spendings are likely the first few to be cut, and most would have assumed that RICK is to be affected. However, this does not seem to be the case for RICK as the nightclub's traffic volume, revenue, and operating margins have recovered strongly post-pandemic (i.e. FY20 and FY21). In the past earnings calls, CEO Eric has reiterated multiple times that he has not seen consumers cutting back on spending. In the most recent 3Q22 earnings call: "...recession hit will be offset or more than offset by people's returning to work and turning to the offices…right now, I don't have an answer as to what we're going to see…or when we're going to see a recessionary effect…I've been on Twitter a lot, and I have seen some entertainers complaining about customer spend on the entertainers. We're not seeing that in our dance dollar sales at our clubs…the girls that I talked to have been very happy, they're making money, and we're printing money as you can see from our financials." Bombshells Bombshell 10-Q & Peers Press Release Bombshells is a highly profitable sports bar and restaurant business, with an operating margin of 19.4% as of 3Q22. This is on par or higher than some of the established restaurant peers such as The Cheesecake Factory (CAKE) and Texas Roadhouse (TXRH). Images From RICK These Bombshells are placed at class A locations where they are surrounded by other restaurants and there are high traffic volumes. They are equipped with large patios and large-screen TVs which make up the overall concept of the business, and they are likely to benefit from near-term catalysts such as the upcoming 2023 world cup. Similarly, RICK also acquires the underlying real estate, insulating Bombshells from high rental costs.Seeking Alpha • Sep 01
RCI Hospitality declares $0.05 dividend
RCI Hospitality (NASDAQ:RICK) declares $0.05/share quarterly dividend, in line with previous. Forward yield 0.31% Payable Sept. 27; for shareholders of record Sept. 13; ex-div Sept. 12. See RICK Dividend Scorecard, Yield Chart, & Dividend Growth.Analysis Article • Sep 01
Here's Why RCI Hospitality Holdings (NASDAQ:RICK) Has Caught The Eye Of Investors
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...Seeking Alpha • Aug 23
RCI Hospitality: Execution Continues To Be On Point
I continue to be very impressed with the management's execution as they produced strong results for both nightclubs and Bombshells. RICK continues to display strong free cash flow growth (+39% Y/Y). RCI Hospitality has an attractive valuation of $178.31 based on my estimates. Investment Thesis RCI Hospitality (RICK) has a strong competitive advantage to roll up the nightclub industry due to its strong balance sheet, superior free cash flow generation and favorable capital structure over its peers. The management also has a scalable and replicable strategy to successfully run the highly profitable sports bar Bombshells, with an exceptional management team that understands capital allocation to drive long-term shareholders' value. Many consumer discretionary companies were punished by the market as investors fear that as recession creeps in, consumer demand may slow and earnings may decline. However, RICK is one of the few exceptions that have seen relatively strong consumer demand, and it has been executing well over the past few quarters since it emerged from the pandemic. In its most recent 3Q22 result, the roll-up strategy remains well on track and the management has continued to impress me with its execution. Let's dive deeper into the quarter. Nightclubs Image created by author with data from RICK IR Image created by author with data from RICK IR Image created by author with data from RICK IR Nightclub revenue grew strongly at 32% Y/Y to $54.3 million. FY20 and FY21 were unusual years for RICK as the business operations were affected by the pandemic and revenue declined massively. However, that didn't hinder the management from executing as they quickly pivoted to Bombshells that thrived during those periods and they did not stop looking for acquisition opportunities (i.e. Lowrie and the Mansion Gentlemen Club). As COVID headwinds wear off and traffic volume returned, high-margin service revenue rebounded strongly, same-store sales increased, and the management's discipline to execute the roll-up strategy has resulted in the strong growth we see during the quarter. One commentary from CEO Eric Langan caught my attention in the earnings call: ...our focus is about 95% on clubs and about 5% on Bombshells…the next three months that there's going to be some great opportunities for us on the club side…We're starting to pay four to five times right now for the big guys…a lot of guys talking to us right now…we've been saying $20 million increase for 2023. If the talks go well, and everything goes well…by December, when we do the K, we may have a much higher, larger target (>$20 million adj EBITDA?) based on deals on the pipeline… I am highlighting this because it is important for various reasons: Nightclub is the core business, making up 76% of total revenue, and thus making up the majority of its bottom line. It has a substantially higher operating margin (41%) than Bombshells (19%), and they are extremely free cash flow ("FCF") generative. This results in expanding cash flow over time. They are the preferred acquirer in the industry with little to no competition and they have the perfect playbook to execute the M&A strategy Therefore, this shift in focus was very well aligned with shareholders as the best use of the management's time and resources should be spent on nightclubs rather than Bombshells. During the quarter, they have already gone on to close 2 new acquisitions - Cheetah Gentlemen's Club (40% EBITDA margin) and Oddessa Club (33% EBITDA margin), and they are in talks with a few more in the upcoming expo conference. Keep in mind that the management plans to add $20 million of EBITDA in FY23, they have to do larger acquisitions or accelerate the number of deals. Given that they are the preferred acquirer, this market is up for grabs. As they acquire more clubs, free cash flow will grow larger over time, and that allows them to do larger acquisitions as club owners prefers cash payments. Image created by author with data from RICK IR Image created by author with data from RICK IR Turning to profitability, its operating profit grew 22% Y/Y and attained a highly impressive operating margin of 44% - the 2nd highest quarter after 3Q21. Much of this was driven by the recovery in service revenue, in which COVID has previously musked the true profitability nature of the business. As CEO Eric Langan put it, we are in the free cash flow business. Some might be wondering, why are nightclubs immensely profitable? This boils down to a few reasons: High margin (90%) service revenue. These are VIP spendings that incur little to zero costs to service their guests. High margin alcohol (80%) with quick inventory turnover. When combined with economies of scale, they are able to get better pricing from suppliers to drive incremental savings. Low maintenance capital expenditure. These include carpets, chairs, sound equipment, etc, which do not require much maintenance. Therefore, it is not expensive to keep a nightclub running. Strong pricing power. They are able to pass on food price increases to customers during inflationary periods. I like to call this a printing machine. Enough said about this segment, so let's turn to Bombshells. Bombshells Image created by author with data from RICK IR Image created by author with data from RICK IR Image created by author with data from RICK IR It was not surprising to see Bombshells declining revenue growth considering that they are growing off really tough comps during the pandemic: …revenues declined 1.8%...due to a tough year-over-year comparison against an unusually strong third quarter in fiscal 2021…was our record highest revenue quarter…That's when Bombshells sells and margins experienced a huge benefit from being one of the few bars and restaurants open in Texas due to the state of COVID… As COVID restrictions eased, competitors began to re-open, and that caused traffic volume, and sales to decline. We are now seeing normalizing growth as we enter post-COVID. Image created by author with data from RICK IR (The AUV is calculated by taking the last 12 months' revenue divided by the total number of units) While revenue has come down from its peak, the average unit volume ("AUV") has held up relatively well ($5.48m) compared to a year ago ($5.77m). This means that on average, each unit is still seeing strong traffic and sales. Years ago, the management has cracked the code on how to run Bombshells - by placing them in class A locations with high traffic volume, and since then, they have been extremely successful. Its newest and best-performing unit, Bombshell Arlington has a revenue run rate of $6.5m to $7m, and this is higher than its AUV. To quote CEO Eric Langan from this quarter's earnings call: We're super high traffic, high flow areas…we have certain operational advantages with our history of being in the business for so many years…we've fortunate and very strong that all of our locations are profitable…haven't had any real competition…oldest location's been there for over 10 years…Most of our locations are going on four to seven years old right now…we've proven the concept works for over 10 years now… During the quarter, they have already secured the properties for the 2 more units and they are also in talks with other potential franchisees. Image created by author with data from RICK IR Image created by author with data from RICK IR Bombshells' operating profit and margins have also obviously declined given the declining revenue. Its current operating margin of 19% is a better reflection of its normalized margins, which is still higher than its restaurant peers like Chipotle Mexican Grill (CMG) and Dave & Buster's (PLAY). This is mainly because they sell high-margin alcohol sales, with the ratio of alcohol to food & merchandise revenue being 55%-44%. Overall, this was a great quarter for Bombshells. Free Cash Flow Image created by author with data from RICK IR Image created by author with data from RICK IR Given the strong rebound in nightclub's service revenue and a one-off $2 million tax refund, they brought in $18 million worth of FCF (+39% Y/Y), making this the highest FCF quarter. This brings its year-to-date ("YTD") FCF to $44.4 million (+61% Y/Y). As of 3Q22, its FCF margin is 25% and its YTD FCF margin is 23%. They have also been consistently surpassing their internal goal: I'll tell you, I pushed my personal goal. I know we're 10% to 15%, we've been doing about 20%. I think 2022 will end it over 30% free cash flow growth. And I think that, right now, 2023 is headed to be another 30%-plus year…So, it's very exciting right now. These past few quarters' results are becoming a better representation of how cash-generative the business is in a post-COVID era. By acquiring more clubs and building out more Bombshells, its FCF will expand larger over time, enabling them to larger acquisitions like Lowrie, which is their biggest club acquisition to date. Let's now head into the valuation portion. Valuation Author Estimates Let me walk you through the certain assumptions I'm making and how I derived the numbers in my discounted FCF valuation model. 1) I'm expecting a minimum expected return (discount rate) of 10% as I am benchmarking against the S&P 500. 2) 3Q22 revenue came in at $70 million, and since the second half of every year is seasonally weaker quarters, I'm also expecting $70 million for 4Q22 too. This brings us to total revenue of $266 million by the end of FY22. 3) CEO Eric Langan guided for a 30% Y/Y FCF growth for FY23. Using the same YTD FY22 FCF margin of 22%, this gives us a total revenue of $346 million by FY23. 4) Assuming that they continue to add $20 million in EBITDA every year, this means that they have to add similar amounts of revenue to maintain their target. Since the difference between FY23 and FY22 revenue is $79 million, I am expecting the same amount of revenue to be added from FY24 to FY27. My assumption of 22% FCF margin remains unchanged. With a 10% discount rate, this gives me the revenue and discounted FCF for each fiscal year.Analysis Article • Aug 14
Is RCI Hospitality Holdings (NASDAQ:RICK) A Risky Investment?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...Shareholder Returns
| RICK | US Hospitality | US Market | |
|---|---|---|---|
| 7D | 4.4% | 3.0% | 1.5% |
| 1Y | -36.9% | -5.4% | 28.6% |
Return vs Industry: RICK underperformed the US Hospitality industry which returned -5.5% over the past year.
Return vs Market: RICK underperformed the US Market which returned 28.4% over the past year.
Price Volatility
| RICK volatility | |
|---|---|
| RICK Average Weekly Movement | 6.6% |
| Hospitality Industry Average Movement | 7.3% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.0% |
Stable Share Price: RICK has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: RICK's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1983 | 3,444 | Travis Reese | www.rcihospitality.com |
RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments. It owns and/or operates upscale adult nightclubs under the Rick’s Cabaret, Jaguars Club, Tootsie’s Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett’s Cabaret, Diamond Cabaret, Cheetah Gentlemen's Club, PT's Showclub, Playmates Club, Country Rock Cabaret, Temptations Adult Cabaret, Foxy’s Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, Heartbreakers Gentlemen's Club, Kappa Men’s Club, Baby Dolls, and Chicas Locas brands; and a dance club under the Studio 80 brand.
RCI Hospitality Holdings, Inc. Fundamentals Summary
| RICK fundamental statistics | |
|---|---|
| Market cap | US$193.79m |
| Earnings (TTM) | -US$6.50m |
| Revenue (TTM) | US$281.63m |
0.7x
P/S Ratio-29.8x
P/E RatioIs RICK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RICK income statement (TTM) | |
|---|---|
| Revenue | US$281.63m |
| Cost of Revenue | US$42.10m |
| Gross Profit | US$239.53m |
| Other Expenses | US$246.03m |
| Earnings | -US$6.50m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.85 |
| Gross Margin | 85.05% |
| Net Profit Margin | -2.31% |
| Debt/Equity Ratio | 107.0% |
How did RICK perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield-37%
Payout RatioCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/30 17:37 |
| End of Day Share Price | 2026/05/29 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/09/30 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
RCI Hospitality Holdings, Inc. is covered by 2 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Scott Buck | H.C. Wainwright & Co. |
| Anthony Lebiedzinski | Sidoti & Company, LLC |