RCI Hospitality boosts quarterly dividend to $0.07 per share

HOUSTON - RCI Hospitality Holdings, Inc. (NASDAQ:RICK), a leading company operating adult nightclubs and sports bars/restaurants, has announced an increase in its quarterly cash dividend. The dividend for fiscal 2024's fourth quarter has been raised by 16.7%, moving from $0.06 to $0.07 per common share.

This enhanced dividend is scheduled for payment on September 30, 2024, and is applicable to shareholders recorded by the close of business on September 16, 2024.

The dividend increase marks a significant move by the company, reflecting a possible uptick in its financial performance or a strategy to provide greater returns to its shareholders. RCI Hospitality Holdings, Inc. oversees more than 60 locations across the United States, positioning itself as a prominent player in its sector.

Investors often view dividend announcements as indicators of a company's confidence in its current profitability and future financial outlook. Thus, RCI's decision to increase its dividend payout could be interpreted as a positive signal to the market.

The information is based on a press release statement from RCI Hospitality Holdings, Inc. It is essential to note that while the company has a leading presence in its industry, the dividend increase is a discrete financial decision and does not necessarily reflect broader market trends or industry performance.

Investors and market watchers will likely monitor the company's subsequent financial reports and performance indicators to assess the sustainability of the increased dividend and its implications for RCI's financial health.

As with any investment-related news, shareholders and potential investors are advised to consider this announcement in the context of their overall investment strategy and market conditions.

In other recent news, RCI Hospitality Holdings reported a modest 1.1% decrease in combined club and restaurant sales for the third fiscal quarter of 2024, totaling $75.5 million. Despite this, the company's same-store sales showed a significant improvement, with a mere 1.5% drop compared to a larger 8.6% fall in the previous quarter. The company also announced an additional $25 million to its share repurchase program, signaling management's confidence in the company's intrinsic value. At RCI Hospitality's Annual Meeting of Stockholders, the election of six directors, the ratification of the company's independent registered public accounting firm, and the approval of a non-binding advisory resolution on executive compensation were announced. H.C. Wainwright maintained its Buy rating for RCI Hospitality shares and expects substantial revenue growth for the company heading into fiscal year 2025. RCI Hospitality reported second-quarter fiscal year 2024 revenues of $72.3 million, a slight increase from the same quarter of the previous year. The company raised $20 million through a real-estate-backed bank loan, intending to invest in more club acquisitions and share buybacks. The company is actively implementing management changes and cost reductions in the Bombshells sector. These are recent developments in the company's capital allocation strategy.

InvestingPro Insights

RCI Hospitality Holdings, Inc. (NASDAQ:RICK) has made a notable stride in increasing shareholder value through its recent dividend hike. This aligns with the company's history of consistently rewarding shareholders, as highlighted by an InvestingPro Tip noting that RICK has raised its dividend for five consecutive years and has maintained dividend payments for nine consecutive years. This trend underscores the company's commitment to returning value to its investors.

Moreover, RCI's financials, as reflected in InvestingPro Data, show an impressive gross profit margin of 84.65% for the last twelve months as of Q3 2024. This high margin is indicative of the company's efficiency in managing its cost of goods sold and could be a contributing factor to its ability to increase dividends. Additionally, RCI's market capitalization stands at $410.15 million USD, and despite a high earnings multiple with a P/E ratio of 84.53, analysts predict the company will be profitable this year, which may offer some reassurance to investors concerned about valuation.

For investors looking to delve deeper into RCI's financial health and future prospects, there are more InvestingPro Tips available, including insights on stock price volatility and earnings revisions. As of now, there are at least 10 additional tips listed on InvestingPro that can provide a more comprehensive analysis to those interested in RICK's performance and investment potential.

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