RCI Hospitality (RICK) Reports Q4 Business Update, Comps Fall
RCI Hospitality Holdings, Inc. RICK provided an update on its business for the fourth quarter of fiscal 2023. The company stated that the results are preliminary and subject to final closing. The company expects to tentatively release its fourth-quarter fiscal 2023 results on Dec 14, 2023.
Preliminary Revenue Results
During the fiscal fourth quarter, the company reported total sales of $74.1 million, reflecting a rise of 5.6% year over year. The upside was mainly driven by acquisitions. However, this was partially mitigated by the effects of vacation travel and the Texas heat in July-August. During the quarter, the company’s Same-Store Sales declined 10.5% year over year.
During the quarter, sales from Nightclubs came in at $60.5 million, reflecting a rise of 7.5% year over year. The upside was primarily backed by contributions from FY22-FY23 acquisitions ($9.2 million) and reformatted clubs ($0.8 million). However, this was partially offset by a decline in same-store sales (9.6% year over year) and lower contributions from closed clubs ($0.7 million).
Sales from Bombshells restaurants in the fiscal fourth quarter came in at $13.6 million, down 2.2% from the year-ago quarter’s levels. The downside was mainly due to a fall in same-store sales (down 14.1% year over year). However, this was partially offset by the contributions (of $1.6 million) from the FY23 acquisitions of Bombshells San Antonio and Grange Food Hall.
Other Updates
During the fiscal fourth quarter, RICK repurchased .03 million shares of its common stock, worth approximately $2.13 million. As of Sep 30, the company stated the availability of approximately $16.6 million in stock repurchase authorization and 9.4 million shares outstanding.
Meanwhile, the company claimed to have progressed with the application process for a liquor license. It also mentioned the evaluation of gaming licenses at Rick's Cabaret Steakhouse & Casino and Bombshells Sports Casino in Central City, CO. The two are slated to debut in fiscal 2024, subject to government approvals.
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Shares of the company have declined 16.3% in the past three months compared with the industry’s 16.4% fall.
Zacks Rank & Key Picks
RCI Hospitality currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
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The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 21.6% and 59.4%, respectively, from the year-ago period’s levels.
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The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. HLT carries a Zacks Rank #2 (Buy). HLT has a trailing four-quarter earnings surprise of 12.5% on average. Shares of the company have gained 26.5% in the past year.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS indicates a rise of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
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