Per our model, the company’s 2023 food and beverage and room revenues will likely witness growth of 6.2% and 7.6%, respectively, year over year. With group business returning back, the momentum is likely to persist in the upcoming periods. Also, it reported growth in food and beverage and hotel segments fueled by the strength in regional and out-of-town businesses.

Attributes such as strong and consistent visitation from guests (including a younger demographic), increased spending per visit, more time spent on gaming devices and the return of core customers are positives. Red Rock Resorts benefits from a rise in visitation and strong spending per visit across its portfolio. It expects to spend approximately $780 million on the project, thereby covering costs related to design, construction, preopening expenses and financing expenses. With solid progress reported (as of March 2023), the company anticipates opening the project by fourth-quarter 2023. It is of the opinion that a larger casino footprint will better align the product offering, given the backdrop of favorable demographics surrounding the Durango region. During the quarter, the company emphasized on expanding its casino area with additional gaming positions. During the first quarter, the company made progress with respect to the Durango development project. Red Rock Resorts continues to focus on development projects to drive growth. Let us delve into the factors that highlight why investors should retain the stock for the time being. However, inflationary pressures are a concern. Also, the emphasis on digital initiatives bodes well. ( RRR Quick Quote RRR - Free Report) is likely to benefit from development projects, a rise in visitation and cost-saving efforts.

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