Wednesday, December 21, 2022

RCI Hospitality Holdings buys a restaurant, taproom, and video game arcade in Colorado

RCI Hospitality Holdings, Inc. announced Wednesday they have purchased a restaurant and taproom in Greenwood Village, Colo. The location is a full-service bar, brewery, and video game arcade. The purchase is part of the company's planned expansion in the greater Denver area.

“Consideration paid was $5.2 million, consisting of $1.875 million in cash and a five-year, 6.67% bank financing note with a 25-year amortization,” the company said in a press release.

The popular 12,500-square-foot food hall offers sushi, Italian sandwiches, Korean dumplings, Mexican dishes, pizza, and Mediterranean specialties. The restaurant is located at 6575 Greenwood Plaza Boulevard.

The plan is to add a mini Bombshells kitchen featuring its famous wings and salads as well as many of its popular appetizers and use the brewery to create its own, signature craft beers for sale in other RCI locations to further differentiate its brands in Colorado.

RCI recently announced the acquisition of sites in Aurora for a Bombshells restaurant and Central City for a Rick's Cabaret Steakhouse and Casino, adding to the company's five adult nightclubs in Denver.

Potential upside in stock shares

Shares of RCI Hospitality Holdings, Inc. (NASDAQ: RICK) were trading in the $95 range on Wednesday following the restaurant acquisition news. Stock shares have gained 4.6% over the past four weeks.

In an article on Tuesday, Zacks Equity Research says “there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $122.67 indicates a 35.4% upside potential."

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