RCI Hospitality (RICK) posted Q1 sales results Thursday afternoon. Overall, sales from nightclubs and restaurants were up 6.5% y/y to $43.4 million, with consolidated comps up just 0.7% y/y. Overall, the quarter does not really change the overall thesis, but it does reinforce my bearish view on Bombshells as well as management's waning optimism about the concept.
The Good: Solid Performance in the Nightclub Segment
Nightclub performance during Q1'19 was solid, with comps up 4.3% y/y on top of a 7.1% comp in Q1'18, for a solid two-year stack of 11.4%. This undoubtedly