Dan Politzer: I know you guys had a couple of one-offs in the quarter that impacted margins a little bit. But as we think about that Durango contribution over time, I think you said that should be the most efficient margin property. So as we think about the coming quarters and the ramp of it, when do you think we might see that impact start to flow through?
Frank Fertitta: I think it will be incremental over the remainder of the year, but you don’t get it all at once. I think one of the great things that we were able to accomplish, which is very difficult, is have a very smooth opening at Durango and focused basically exclusively on the customer experience. And as business starts to settle in to what normal business levels or going to be by day of the week and time of the day, we’re going to continue to refine operations, but I would say it will probably take towards the end of the year, really get it where we feel that it’s going to be going forward.
Scott Kreeger: Yes. And with that said, I mean, this is literally our first full quarter of operations. Yes. I mean the project is highly profitable, generating very high margins pretty much in line with the rest of our properties already. So as Frank said, as we really start to understand business volumes and whatnot, we can start to tweak margin and confident we’ll get there by the end of the year.
Dan Politzer: Got it. And then just for my follow-up. I don’t know if maybe you could talk about the cadence over the course of the quarter. We obviously got the industry numbers, and so it seems like things softened a bit over the course of the quarter. I don’t know if that was what you guys saw in terms of your own operations, but any kind of reconciliation there? And then any detail, if you can, on April, just if that’s been a continuation of that stability that you guys have kind of called out?
Stephen Cootey: Yes, Dan, I think I’ll address it and allow the others to add in. But I don’t want to get into month by month, but we saw a stability across the quarter, and we’re seeing that going in through April. I would say that March, the only real weakness there, as we already articulated there, you saw some weakness in raised Sports, which I think was universal across the strip mainly due to those 2 large events in the Supa and the NCAA term but otherwise, stability throughout the quarter.
Operator: The next question comes from Chad Beynon with Macquarie.
Chad Beynon: Wondering if you could revisit the topic of getting bigger or getting into the tavern business as a medium or long-term goal. Has anything changed in terms of how you’re thinking about that?
Scott Kreeger: It’s Scott. Nothing has changed. We still think it’s a great place to invest in. And for all the reasons that we talked about in the past that it’s a unique customer with a different profile than our core customer. So it skews younger and skews towards the sports better. So we like that kind of a customer. We have 7 units currently under contract. First one will come online in September. The second one will come online in December. And then we have 2 coming online in January and then the remainder of the units throughout 2025. So we’re actively out there seeking to grow the number of units that we have in the market, and we think it’s an opportunity for us to kind of expand into what we call the micro market within the Valley.
Lorenzo Fertitta: And just Lorenzo, from a health standpoint, I know everybody is focused on different segments of the market at that end of the business, what we call kind of a smaller property seems to be very healthy and very consistent and actually grow. So as a sign relative, it’s a very local market, but that is going very well from an operating standpoint.
Chad Beynon: And then on the food and beverage side, I think that was a big standout in the quarter, just kind of the year-over-year growth, and I’m sure most of that or a lot of that growth came from Durango. Is this — you made a comment about group bookings. Should this food and beverage revenue become more regular? Or is there still some significant seasonality around how we should think about that with different groups and weddings and those types of things? Just trying to figure out the magnitude of the growth that we saw and how that should look throughout the remainder of the year.
Scott Kreeger: Yes, let me split it up into 2 segments, so that it’s a little bit easier because they have a kind of a different behavior. When we talk about our retail food and beverage operations, I think you’re going to continue to see strong performance across the properties we’re bringing on great restaurant tours and great offerings across the valley. So we see that continuing. When we look at catering, which is a function of group room nights and social catering, while we saw strong numbers across the first quarter, we have been kind of signaling that we’re about to lap ourselves with COVID rebookings and COVID cancellation fees on a year-on-year basis. So this quarter, the second quarter and a little bit into the third quarter, we’ll kind of trail off those difficult comps. And then going forward, if I had to say anything that we have a little work to do, it’s probably in the summer months, but then in the fourth quarter, it starts to pick back up for us.
Operator: The next question comes from Brandt Montour with Barclays.
Brandt Montour: So actually just one, but it’s a bit of a 2-parter. I was curious, when you think about Phase 2 for Durango, which I probably remember correctly, is this something you planned alongside Phase 1. What have you learned months in, 6 months in here that may have made you want to tweak anything to Phase II? I know we don’t know Phase II is yet, but maybe just qualitatively, has anything made you want to adjust those plans? And then the second part of that is specifically around the F&B and the lease model, which you have in Durango, I mean we see these F&B results and how strong the segment is for you. Is there a thought to maybe convert or do any more of that F&B on an owned basis to capture those EBITDA dollars? Or how are you thinking about that?
