Wednesday, October 12, 2022
With more than 60 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, Scarlett’s Cabaret, Diamond Cabaret, and PT’s Showclub. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Club and Bombshells Sales. RCI reported preliminary fourth quarter 2022 sales for the nightclubs and Bombshells restaurants of $70.0 million, a 28.8% year-over-year increase. Same store sales for the quarter declined 1.3% from the previous year, but were up 5.6% for all of fiscal 2022. This number does not include non-core operations. We projected full 4Q22 revenue of $68.5 million. We expect RCI to report full 4Q22 results by December 14th.
Segments. Nightclubs revenue was up 40.4% in the quarter, up 3.2% on a same store sales basis, to $56.1 million. Newly acquired clubs added $14.9 million of revenue in the quarter. Bombshells revenue declined 3.6% in the quarter and was off 13.3% on a SSS basis. The Arlington location accounted for $1.4 million of the segment’s $13.9 million of overall revenue.
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