Rick's Cabaret Earns Upgrade to 'Neutral' Rating

HOUSTON—Rick’s Cabaret International has earned an upgraded “neutral” rating from the equity research analysts at Zack’s Investment Research, according to American Banking & Market News.

The welcome news comes despite a quarterly report last week that reported “a loss from continuing operations of $7.6 million for the year, primarily because of non-cash balance sheet impairment charges of $20.5 million, compared with 2009 income from continuing operations $5.5 million.”

Rick’s, which owns and operates nightclubs that offer live adult entertainment and restaurant and bar operations, has 19 adult nightclubs; six of its clubs operate under the name Rick’s Cabaret; four operate under the name Club Onyx; five operate under the name XTC Cabaret; one club operates as Tootsie’s Cabaret and one operates as Cabaret North. The company also owns and operates several adult entertainment websites and a media division.

“We think 2011 is looking very good,” said Eric Langan, president and CEO of Rick’s Cabaret International Inc. “We plan to add four more locations in 2011, staying on our goal of making at least one acquisition per quarter. In addition we will benefit from the Super Bowl in February in Dallas, where we will have a terrific cluster of seven clubs ready to welcome fans.”

Shares of Rick’s Cabaret (NASDAQ: RICK) traded up 3.73 percent during midday trading on Tuesday, hitting $8.63.