Rick’s Cabaret, one of two listed strip club operators, has been putting its piles of crumpled bills to work.
Rick’s just plunked down $9 million for the Executive Club in Dallas — its seventh deal in two years. And the company plans to keep growing, according to its latest earnings report, by snapping up more clubs or partnering with existing owners.
The strategy is working. Over the past six months, Rick’s shares have swelled nearly 118 percent — while the Dow Jones Industrial Average is down over 10 percent. With its latest purchase, Rick’s will own and operate a total of 16 clubs. And same-store sales have grown almost 20 percent.
February revenue for its New York City joint alone was up almost 75 percent — showing that despite all those low bonus warnings, Rick’s can bring in the green. That may make the cabaret a good place for investors to get away from market blues.
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