Current Situation of Major Commercial Casinos, Analyzed: GLPI, Churchill Downs, Wynn Resorts, and Beyond
Gaming and Leisure Properties (GLPI)
Stock Discussions on Wall Street Bets: GLPI, Pedestrian Footfall, Churchill Downs Inc., Wynn Resorts
Analyst Barry Jonas of Truist Securities weighed in on GLPI, stating that while its Q4 AFFO was consistent with expectations and beat the Street by 1%, the 2025 AFFO/share guidance missed the Street's mark by 2% at the midpoint. However, management highlighted several reasons for this discrepancy, including GLPI's history of exceeding initial guidance.
Gaming foot traffic
In January, Jefferies analyst David Katz examined industry trends, noting that foot traffic data was inconsistent across gambling establishments, just like the previous couple of years. Although Churchill Downs outperformed its peers, with foot traffic increasing 15% year-over-year, other companies experienced negative traffic that was comparable to initial monthly gaming results. Katz attributed Churchill Downs' growth to the opening of The Rose Gaming Resort in Dumfries, Virginia.
Churchill Downs Investors' Call
David Katz also assessed Churchill Downs after its investors' call, emphasizing the importance of the return on capital spending and the path to reducing leverage. Katz concluded that returns on most projects have been adequate, but may not meet all hurdle rates. He believes that the slow start at The Rose can be rectified, leading to improved overall performance.
Wynn Resorts' Strength
J.P. Morgan analyst Joseph Greff looked at Wynn Resorts, reporting that the company generated property-level EBITDAR of $619 million in the 4th quarter of 2024, 11% above the estimations. The Las Vegas and Macau branches significantly outperformed expectations.
By all accounts, the gaming industry continues to be a dynamic and competitive landscape. While each company faces unique challenges, they also have distinct strengths that set them apart. Keep an eye on these major players to stay updated on trends and movements within the commercial casino sector.
The gaming industry continues to exhibit dynamic and competitive landscapes, with each major player like Gaming and Leisure Properties (GLPI), Churchill Downs, and Wynn Resorts showing unique challenges and distinct strengths. While GLPI's AFFO guidance for 2025 missed analyst expectations, their history of exceeding initial guidance remains noteworthy. On the other hand, casino foot traffic data appears inconsistent across establishments, with Churchill Downs outperforming its peers due to the opening of The Rose Gaming Resort in Dumfries, Virginia.
