Good business with little to no competition in many areas of the country. I know of clubs in nice cities that have no competition at all, although RICK doesn't own those clubs. If RICK management knew enough to target those clubs, and pay cash (before they became so indebted), they wouldn't have to be experimenting with low margin restaurants and highly competitive sports bars.
The earnings COULD have grown to $1.35-$1.50 per share by now HAD they not taken on so much debt and bought such low margin clubs and such. With earnings like that and little to no debt, expansion would be a breeze.
Buying at today's price one can only pray that management changes it's ways once and for all. But with the CEO in place for 14+years, that doesn't look likely. Tell me why a CEO of such a tiny company need his own jet (he's an avid pilot btw), plus an expensive second plane, and a $850,000/yr salary. And why do they pay another guy to be Director of Operations? That should be ERIC's #1 job. HE should be on video conference weekly with club managers and stressing the importance of eliminating situations that can lead to hefty lawsuits and such. HE should be running these clubs tighter and preventing a cash skim because that steals from shareholders and the IRS imo. HE shouldn't be cutting loan deals with individuals at such favorable terms. Why pay a CFO if Eric is wheeling and dealing? I'd fire the current CFO who's crushing the company under debt and hire a kid right out of college and pay them $75K/yr.
IMO, this little close knit group of directors, their lawyers, and a few individuals receiving high interest on loans to the company are the only ones here who will ever make any money. They run it like it's their own private company and nobody else has any say. None of these folks NEED the stock to do anything for them to make millions over and over again.
So unfortunately, despite being a good business to be in, you are buying the management when you buy the stock.