It’s not unusual today for public restaurant companies to hold “investor events,” where portfolio managers are given a close-up view of the operation and what it sells. But the one scheduled for tomorrow by Rick’s Cabaret International, the publicly traded string of “gentlemen’s clubs,” will likely be different from most.
After investors are briefed on Rick’s second-quarter financial results, the “financial industry professionals” will be welcomed at the company’s outlet in New York for what Rick's calls the Due Diligence Ball. The announcement highlights such attractions as free hors d’oeuvres and discounted drinks. But you have to wonder if perhaps the “live adult entertainment” might not be part of the draw. Rick’s, after all, operates what we restaurant writers refer to among ourselves as breast-aurants.
Anytime a financial press release has to specify that “sexual contact is not permitted” within the issuer’s business establishments, you know you’re a long way from a McDonald’s earnings report.