RCI Hospitality -RICK's Q4 Update: Buyback and Expansion Signal Hope Amid Soft Comps

Core Insights - RCI Hospitality Holdings, Inc. (RICK) reported a total sales of $72.1 million for Q4 fiscal 2024, reflecting a 2.6% decrease year over year due to external challenges like Hurricane Beryl [2][4] - The company experienced a decline in same-store sales by 1.1% year over year, primarily impacted by temporary closures at key locations [2][3] Q4 Preliminary Revenue Results - Nightclub sales totaled$ 60.2 million, down 0.5% year over year, affected by Hurricane Beryl causing 10 closure days at three clubs in Houston [3] - Bombshells restaurant sales were reported at $11.9 million, down 12.2% from the previous year, with same-store sales falling 16.2% year over year due to prolonged closures in Houston [4] Other Updates - RICK repurchased 0.17 million shares of common stock for approximately$ 7.8 million during Q4, with $21 million remaining in stock repurchase authorization [5] - The company plans to expand with six new clubs and restaurants in fiscal 2025, including the reopening of Baby Dolls Fort Worth [6] Valuation and Investment Opportunity - RICK's stock is trading at a 12-month forward P/E ratio of 10.10, significantly lower than the industry average of 17.84, indicating potential undervaluation [7] - The company's focus on enhancing its portfolio and strategic share repurchases suggests a commitment to maximizing shareholder value, making it an attractive investment opportunity [8] Stock Performance - RICK shares have gained 7.7% over the past three months, compared to a 12.4% rise in the industry [9]