RCI Hospitality HoldingsFRA:RIK -0.25%67 Gross Margin % is 56.28% as of Mar. 2026, which is 4% below its 10-year median of 58.38. GuruFocus rates FRA:RIK with a GF Score™ of 67/100 and a GF Value™ of €46.71 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 358 Restaurants companies, RCI Hospitality Holdings ranks better than 65.92% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
RCI Hospitality Holdings had a gross margin of 56.28% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
RCI Hospitality Holdings Gross Margin % Related Terms
RCI Hospitality Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:RIK vs BRCB, VENU, JACK: Gross Margin % Comparison
For the Restaurants subindustry, RCI Hospitality Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RCI Hospitality Holdings Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, RCI Hospitality Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RCI Hospitality Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
RCI Hospitality Holdings (FRA:RIK) has a Gross Margin % of 56.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on RCI Hospitality Holdings and its competitors. This is near median its historical median of 58.38. Over the past decade, RCI Hospitality Holdings' Gross Margin % has ranged from 55.79 to 60.97. According to the industry distribution chart, RCI Hospitality Holdings ranks #122 out of 358 companies in the Restaurants industry, placing it in the top 34.1%.
Is RCI Hospitality Holdings' Gross Margin % too high?
RCI Hospitality Holdings' current Gross Margin % of 56.28% is near median its 10-year median of 58.38. Over the past 10 years, this metric has ranged from a low of 55.79 to a high of 60.97. The Restaurants industry median Gross Margin % is 45.69. RCI Hospitality Holdings' value of 56.28% is 23.2% above this industry median. Based on the distribution chart, RCI Hospitality Holdings ranks #122 out of 358 companies in the Restaurants industry, which is above the industry midpoint. Overall, RCI Hospitality Holdings has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does RCI Hospitality Holdings' Gross Margin % compare to BRCB and VENU?
According to the Restaurants industry distribution chart, RCI Hospitality Holdings ranks #122 out of 358 companies for Gross Margin %. This puts RCI Hospitality Holdings in the upper half of its industry. The industry median Gross Margin % is 45.69. RCI Hospitality Holdings' value of 56.28% is 23.2% above this benchmark. Historically, RCI Hospitality Holdings' own Gross Margin % has ranged from 55.79 to 60.97 over the past decade. While the company's 10-year median is 58.38 vs. the industry median of 45.69, RCI Hospitality Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RCI Hospitality Holdings's current Gross Margin % of 56.28% is 23.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on RCI Hospitality Holdings and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RCI Hospitality Holdings's current Gross Margin % is 56.28%, which is near median its own 10-year median of 58.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RCI Hospitality Holdings stock overvalued right now?
Based on GuruFocus' analysis, RCI Hospitality Holdings (FRA:RIK) is currently considered Possible Value Trap. The stock's GF Value™ is €46.71, compared to a current price of €23.58 — trading 49.5% below its estimated fair value. The current Gross Margin % is 56.28%, which is near median its 10-year median of 58.38 and 23.2% above the Restaurants industry median of 45.69. RCI Hospitality Holdings' overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For RCI Hospitality Holdings (FRA:RIK), the current Gross Margin % is 56.28% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RCI Hospitality Holdings (FRA:RIK) Overvalued in 2026?
Based on GuruFocus' analysis, RCI Hospitality Holdings stock appears to be undervalued.
The current stock price of €23.58 is trading 49.5% below its estimated GF Value™ of €46.71.
GuruFocus considers RCI Hospitality Holdings to be Possible Value Trap.
Key valuation signals for FRA:RIK:
Gross Margin %: 56.28% (near median its 10-year median of 58.38)
GF Value™: €46.71 vs. price of €23.58 (49.5% below fair value)
Industry Position: 23.2% above the Restaurants median (#122 of 358)
No single metric tells the full story. See the FRA:RIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RCI Hospitality Holdings Inc through its subsidiaries, owns and operates establishments that offer live adult entertainment, restaurant, and or bar operations. It also owns and operates a communication company serving the adult nightclub industry. The company's operating business segments are Nightclubs, Bombshells, and Others. It operates nightclubs through the following brands Rick's Cabaret, Vivid Cabaret, Tootsie's Cabaret, Club Onyx, and Jaguars Club. In the Bombshells segment, the company is building a chain of Restaurants and Sports Bars in Dallas, Austin, and Houston, Texas. It derives the majority of revenue from the Nightclubs segment that engages in the sale of alcoholic beverages, food, and merchandise items; service in the form of cover charges, and room rentals.
67GF Score
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