May. 7 at 11:57 PM
$RICK its 2026 and Bombshell AUV went from 5 or 6m to 3m while costs exploded, margins have been 0 for years and management thinks 15% margins are possible. this is after closing the "bad" stores.
meanwhile clubs still losing margins with negative same store sales and all the growth projects failed. and management response is "well we can buyback stock because its down so much even at 4-5x leverage with business declining. Well even seller finance ADW stock at
$37 when we trade at
$23. " Awesome.
Conference call feels like they are using an old script. 10-15% free cash flow per share growth, back to basics targets not changing, talking about M&A-even using stock when(not if) valuation goes up.
still waiting for real estate sales too.
RICK was once a good stock but ridiculous capex and planning with negative return killed it and buybacks arn't going to save it!
