RICK - RCI Hospitality (RICK) - Now Accepting Bitcoin Raises Dividend

Pay By Bitcoin. Earlier this week, RCI announced its Tootsie's Cabaret and Scarlett's Cabaret Miami locations will be the first of RCI's subsidiaries to accept Bitcoin as payment. Guests can now pay using Bitcoin wallet apps on their mobile phones. The Bitcoin will be converted into fiat cash. We believe the move provides even greater opportunity not only for payment options but possibly to attract more of the crypto crowd to the locations. Depending on the experience, we would anticipate other locations to begin accepting Bitcoin in the future.In Time For Bitcoin 2022. The announcement comes just before Bitcoin 2022, the world's largest gathering of "bitcoiners," with over 35,000 attendees in 2021. Bitcoin 2022 is being held April 6-9 in Miami, an easy drive to the Tootsie's and Scarlett's locations.Raising Dividend. On February 28th, RCI announced it increased its quarterly cash dividend by 25%, to $0.05 per share from $0.04, for the Fiscal 2022 second quarter ending March 31, 2022. The dividend establishes a new annualized rate of $0.20 per share and marks RCI's 25th consecutive quarterly cash dividend.Buying Back Stock? With RICK shares dipping below the $65 level since February 17th, we would not be surprised if the Company was using free cash flow to repurchase shares. During the 1Q22 conference call, CEO Langan stated, "When it gets into our range, we will be buying stock. It just hasn't hit our buy range of 65 because -- and I say that's our -- that's when we -- at that point, we're going to buy stock because it just makes sense." Maintain Outperform. We are maintaining our Outperform rating and $100 12-month price target. RCI is the only publicly traded Gentlemen's club operator with a fast growing military themed sports bar and restaurant chain. We believe the unique combination, with significant inorganic and organic growth opportunities, presents investors with a favorable risk/reward opportunity. Read More >>