New CEO, new strategy? RCI Hospitality installs Travis Reese amid investor pressure

Why RCI Hospitality’s interim leadership change signals more than just a reshuffle

RCI Hospitality Holdings Inc. (NASDAQ: RICK) announced on November 28, 2025, that it has appointed board member Travis Reese as Interim President and Chief Executive Officer, while Albert Molina will serve as Interim Chief Financial Officer. The leadership shake-up follows the resignation of long-serving CEO Eric Langan and CFO Bradley Chhay, who will continue in advisory roles during the transition period.

The leadership transition comes at a time of heightened investor scrutiny for the Houston-based hospitality and entertainment firm, whose share price has been under sustained pressure. The move marks a significant shift in RCI Hospitality Holdings Inc.’s executive suite, as the company attempts to recalibrate its strategy amid weakening topline performance and volatility across its nightclub and Bombshells segments.

RCI Hospitality Holdings Inc., which operates adult entertainment nightclubs and Bombshells Restaurant & Sports Bars across the United States, emphasized continuity and operational expertise in naming Reese and Molina to the interim roles. Both executives bring long-standing internal experience, which may serve to reassure investors even as the company signals a willingness to reorient leadership at the top.

What prompted the sudden exit of RCI’s long-serving CEO and CFO after recent volatility

According to the board’s statement, the leadership change became effective immediately, with Eric Langan stepping down from his roles as President and Chief Executive Officer and Bradley Chhay exiting as Chief Financial Officer. While no specific reasons were disclosed for their resignations, the timing aligns with a period of operational strain and declining investor confidence.

The outgoing leadership had come under pressure in recent quarters as RCI Hospitality Holdings Inc. reported inconsistent performance across its business lines. Its fourth-quarter results revealed a drop in same-store sales in the Bombshells division, while expansion and development efforts in new markets faced delays. Meanwhile, margin compression and tightening discretionary consumer spending further weighed on profitability. Analysts tracking the firm believe the board’s decision reflects an urgency to regain operational focus while reestablishing credibility with institutional shareholders.

Despite stepping down, Langan will remain a member of the board of directors and will transition to a strategic advisory role. His focus will include assisting with the evaluation of potential acquisition opportunities and helping oversee deal flow across the company’s portfolio of clubs and restaurants. Similarly, Chhay will support the finance team in budgeting, capital allocation, and integration efforts for acquisitions in progress.

Who are Travis Reese and Albert Molina, and why did the board place its trust in them

Travis Reese has been a board member of RCI Hospitality Holdings Inc. since 1999 and served as Executive Vice President before his appointment as Interim CEO. Over his 24-year tenure, Reese was responsible for building and managing the company’s information technology infrastructure, including internal reporting systems and security. He also played a lead role in developing the Bombshells concept, which expanded RCI’s revenue base beyond nightclubs into the family-friendly restaurant segment.

Reese’s background includes overseeing site selection, project development, and operational rollouts for new Bombshells locations, as well as hands-on engagement with real estate and municipal negotiations. His familiarity with both the entertainment and foodservice arms of the business is seen as a key strength at a time when the company’s dual-segment model is under review.

Albert Molina, the newly named Interim Chief Financial Officer, has served as the company’s Director of Financial Reporting since 2016. He brings two decades of experience in corporate accounting, financial reporting, and regulatory compliance for public companies. Before joining RCI Hospitality Holdings Inc., Molina held roles with several restaurant and retail chains, focusing on SEC reporting, technical accounting guidance, and controller-level responsibilities. He also held financial leadership positions at a call center firm and a broadband infrastructure provider earlier in his career.

RCI’s board described both appointments as part of a broader effort to maintain operational continuity while empowering internal talent capable of executing the company’s next growth phase.

How the stock has performed and what investors are signaling through recent price action

Shares of RCI Hospitality Holdings Inc. have declined sharply over the past year, falling from a 52-week high of over USD 66 to the current level of approximately USD 24. This represents a decline of more than 60 percent, underscoring mounting investor frustration with the company’s strategic direction and earnings consistency.

While the stock has seen episodic buying support tied to share repurchase announcements and asset divestitures, these moves have not been sufficient to counter investor concerns over slowing growth and operational execution. Institutional sentiment has shifted notably in recent quarters, with several analysts revising their ratings from “buy” to “neutral” or “underperform,” citing weak same-store sales growth, restaurant margin pressure, and limited visibility on long-term capital deployment.

Following the leadership update, market reaction has been relatively muted, with shares registering minor intraday fluctuations. Some analysts see the interim appointments as a stabilizing step, though others caution that without a clearly articulated roadmap for restructuring or reaccelerating growth, investor confidence may remain subdued.

Why the Bombshells segment will be key to RCI’s near-term turnaround prospects

The Bombshells division, which was once viewed as a promising diversification strategy away from adult nightclubs, has recently emerged as a point of vulnerability. Quarterly results have shown a softening of consumer traffic and average check sizes, exacerbated by inflationary pressures and a more cautious consumer environment. Labor and food costs have also weighed on segment margins, raising questions about the scalability and sustainability of the format in newer markets.

Given Travis Reese’s involvement in conceptualizing and expanding Bombshells, analysts expect him to take a more hands-on role in reviving the brand’s performance. His experience in site selection and operational controls could translate into tighter cost oversight and more disciplined location rollouts, particularly in light of capital market skepticism.

While nightclubs continue to serve as the company’s cash flow engine, the ability to generate incremental growth and margin expansion from Bombshells remains crucial to unlocking shareholder value.

What signals to watch for next as RCI reshapes its leadership and strategy

Market participants will be closely watching how the interim leadership duo communicates forward-looking strategy over the coming months. Key signals include updates on cost optimization, real estate repositioning, and M&A priorities. Investors are also likely to demand greater transparency in segment-level financial disclosures, capital allocation metrics, and longer-term planning for succession beyond the interim period.

RCI Hospitality Holdings Inc. has emphasized that both Reese and Molina are candidates for permanent appointment, suggesting that their performance during this transitional phase could determine whether the board formalizes their roles. However, external candidates may still be considered depending on market feedback and execution results.

In addition, any announcements related to new club openings, restaurant expansion, or asset monetization efforts will offer clues into how aggressively the board intends to pursue strategic realignment.

What is the long-term outlook for RCI Hospitality’s dual business model in nightclubs and restaurants?

The leadership change at RCI Hospitality Holdings Inc. reflects both immediate operational challenges and longer-term strategic questions around its dual-segment business model. The company’s ability to navigate evolving consumer trends, shifting macroeconomic pressures, and increased regulatory scrutiny will be tested in the coming quarters.

With insider expertise now at the helm, RCI may be better positioned to focus on internal efficiencies, optimize underperforming assets, and recalibrate its expansion pace. However, in order to rebuild market trust and reverse the stock’s downward trajectory, interim leadership must deliver tangible outcomes that demonstrate fiscal discipline and renewed growth potential.

Institutional analysts suggest that the next two quarters will be critical in determining the sustainability of RCI’s business model and the board’s appetite for deeper structural reforms. Investors will also be monitoring whether the company moves to a more centralized or franchise-driven approach in its restaurant division, and whether it continues to deploy capital into new locations or opts for consolidation and profitability-focused execution.

The leadership reset may be interim in title, but the expectations it carries are anything but temporary.

What are the key takeaways from RCI Hospitality’s executive transition announcement?

• RCI Hospitality Holdings Inc. (NASDAQ: RICK) has appointed Travis Reese as Interim Chief Executive Officer and Albert Molina as Interim Chief Financial Officer following the immediate resignations of Eric Langan and Bradley Chhay from their respective roles.

• Eric Langan and Bradley Chhay will continue in strategic advisory roles, with Langan assisting on M&A strategy and Chhay supporting budgeting and financial integration.

• Travis Reese has been with the company since 1999 and was instrumental in developing the Bombshells Restaurant & Sports Bar concept, making him a familiar operational leader at a time of segment underperformance.

• Albert Molina brings over 20 years of experience in financial reporting and SEC compliance, including nine years within RCI Hospitality Holdings Inc.

• The leadership change follows a period of stock underperformance, with RCI’s share price falling more than 60 percent over the past year.

• Analysts believe the board’s decision signals a desire for renewed operational focus and tighter financial discipline in response to recent sales softness and macroeconomic pressures.

• The Bombshells segment has emerged as a critical focal point, with declining same-store sales and inflation-related margin pressure prompting calls for more disciplined expansion.

• Interim appointments may become permanent depending on short-term execution outcomes, although the board has not ruled out external candidates.

• Investors will be watching upcoming financial disclosures, cost-cutting measures, and capital allocation plans to assess the credibility of RCI’s turnaround efforts.

• Institutional sentiment remains cautious, with a need for clearer strategic direction and improved segment performance to regain market confidence.