CONSUMER DISCRETIONARY

Our Consumer Discretionary research platform focuses on companies producing goods and services for U.S. and global consumers. This sector encompasses a broad group of public companies in restaurants, apparel, retailing, and consumer durables. These subsectors are influenced by consumer incomes and spending, which can be quite cyclical. Companies within these sectors tend to be more sensitive to employment and inflation developments and related fiscal and monetary actions.

Recent Sector Insights

CONSUMER DISCRETIONARY
RCI Hospitality Holdings, Inc. (NASDAQ: RICK)
1Q Results Exceed Our Projections; Long Runway for Growth Ahead; Initiating 2024 Projections
Update Note · 21 Feb 2023

Summary thesis. Following the release of fiscal 1Q results, our long-term thesis remains intact. RCI’s aggressive acquisition activity in FY23 and FY24 has positioned the company for accelerated earnings growth and strong FCF over the next several years. The company’s capital allocation disciplin...

CONSUMER DISCRETIONARY
RCI Hospitality Holdings, Inc. (NASDAQ: RICK)
Double-Digit Revenue Gains in 1Q; Accelerating Growth Ahead
Update Note · 12 Jan 2023

Summary thesis. RCI is transforming the industry, turning traditional adult clubs into clubs that appeal to millennials. RCI has become a new financial force that can generate strong FCF to acquire clubs and grow EBITDA and earnings without diluting shareholders. Accelerating growth is ahead with...

CONSUMER DISCRETIONARY
RCI Hospitality Holdings, Inc. (NASDAQ: RICK)
Strong 4Q Results; Multiple Catalysts in Place; Raising Estimates
Update Note · 19 Dec 2022

• 4Q and FY22 results surpass our expectations on every major metric. RCI Hospitality Holdings, Inc. reported strong 4Q results, exceeding our estimates on revenues, adjusted EBITDA, adjusted EPS, and free cash flow (FCF).

CONSUMER DISCRETIONARY
RCI Hospitality Holdings, Inc. (NASDAQ: RICK)
Free Cash Flow Strategy Provides Differentiation and Long Runway for Growth
Initiation Of Coverage Report · 08 Dec 2022

Initiating coverage of RCI Hospitality Holdings, Inc. There appears to be a disconnect between the company’s strong fundamentals (strong FCF generation, industry-leading margins, and significant EBITDA/EPS growth) and valuation. We estimate EPS of $5.22 (+27.9% Y/Y) and $5.68 (+8.9%) for FY22 and...

CONSUMER DISCRETIONARY
RCI Hospitality Holdings, Inc. (NASDAQ: RICK)
Fireside Chat: CFO Bradley Chhay, December 1, 2022, at 1:00 pm ET
Fireside Chat Invitation · 29 Nov 2022

Please join us for a conversation with CFO Bradley Chhay on December 1, 2022, at 1:00 pm ET. RCI is the only publicly traded company in the adult nightclub industry. Our discussion will focus on how RCI delivers shareholder returns through organic growth, accretive acquisitions, and share repurch...