RCI Hospitality announces quarterly dividend for fiscal 3Q25

Published 03/06/2025, 14:12
RCI Hospitality announces quarterly dividend for fiscal 3Q25

HOUSTON - RCI Hospitality Holdings, Inc. (NASDAQ:RICK), a leading company in adult nightclubs and sports bars/restaurants, has declared a quarterly cash dividend of $0.07 per common share for its fiscal third quarter ending June 30, 2025. The dividend is scheduled to be paid on June 30, 2025, to shareholders of record as of June 16, 2025. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value estimates.

This announcement continues RCI’s practice of distributing dividends, marking the 38th consecutive quarter since the initiation of cash dividends in the fiscal second quarter of 2016. InvestingPro data shows the company has raised its dividend for 6 consecutive years, with a current yield of 0.71%. The consistent payment underscores the company’s commitment to providing value to its shareholders through regular returns on investment.

RCI Hospitality Holdings operates over 60 locations across the United States and is recognized as a prominent player in its sector. The company’s diverse portfolio includes a variety of adult entertainment venues and sports bars, catering to a wide range of clientele. With a market capitalization of $347 million, RCI maintains impressive gross profit margins of 85%.

The declaration of the dividend reflects the company’s financial health and its ability to generate ample cash flow to support shareholder returns. It is a sign of RCI’s stable position in the market and its management’s confidence in the ongoing profitability of its operations. InvestingPro analysis rates the company’s overall financial health as ’FAIR,’ with additional insights available in the comprehensive Pro Research Report.

The information in this news article is based on a press release statement from RCI Hospitality Holdings, Inc.

In other recent news, RCI Hospitality Holdings Inc. reported its second-quarter 2025 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of $0.65, missing the projected $0.72, and reported revenue of $65.9 million, below the anticipated $71.73 million. Despite these misses, RCI Hospitality experienced a notable year-over-year increase in net income, rising from $800,000 to $3.2 million. The company has been focusing on strategic acquisitions and operational improvements to drive future growth. Additionally, RCI Hospitality is targeting $6 million in adjusted EBITDA from annual acquisitions and aims to generate $250 million in free cash flow over five years. The firm has also outlined plans to reach $400 million in revenue by fiscal 2029. Analysts inquired about the company’s acquisition strategy, noting that financing rates for these acquisitions range from 6-7%. The company is also making significant operational adjustments to improve performance, particularly in its Bombshells segment.

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