Frank Fertitta: Dan, this is just another step in the evolution of Vegas, right? It’s just another large weekend in the scheme of large weekends, which seem to be now 52 weeks a year. There’s going to be a lot of people visiting the town. That means there’s going to be a lot of tips and those tipped employees on the strip are generally our customers. So Scott touched on it earlier, but there’s kind of a two-pronged benefit there.
Dan Politzer: Got it. And then just for my follow-up, I know you guys have a well-documented set of opportunities within Las Vegas. But I guess as you think about the company as a whole, are there other opportunities that you’ve looked at or would consider outside of Nevada or even outside of the US?
Frank Fertitta: Yeah. I mean, we’re always looking at all opportunities that are out there, but for any opportunity, we really have a high benchmark of what it would have to be in terms of the opportunity and the risk reward profile. Lorenzo, do you got anything to add?
Lorenzo Fertitta: No, that’s fair. I mean, it would have to be an exceptional opportunity given the fact that we do have the pipeline space.
Dan Politzer: Understood. Thanks.
Operator: Next question comes from Chad Beynon with Macquarie. Please go ahead.
Chad Beynon: Good afternoon and thanks for taking my question. I wanted to ask about the Durango EBITDA ramp and also how we should think about margins maybe compared to some of your other bigger resort properties in the market as it pertains to the mix of gaming versus non-gaming? Thanks.
Frank Fertitta: Yeah. So I mean, I’ll start and then Scott will chip in. But I think we’ve been pretty consistent in terms of the ramp. When we take a look at this property, there are no real loss leaders here. You have slots, you have tables, a little bit over 200 rooms. We’re operating two restaurants with system-wide, we tend to operate very profitably in terms of the Osborn, the stake. And the rest of the restaurants are leased. So it’s 100% profit margin. So we think the property would drop right out of the gate, it will reach what we view as stability, though we’ll never be — it will never reach – it will keep growing probably in the year three.
Scott Kreeger: I mean Red Rock is still ramping after opening up in 2006. So we would expect the same thing for Durango moving forward.
Frank Fertitta: And then we think, to answer your second question at stability, we think this will most likely be one of our highest, if not our highest margin property in the system.
Scott Kreeger: And I think on the early side of it, we just want to make sure that the customer experience is as good as it can be. So while efficiency is important out of the gates, we want to make sure that the customer experiences the best it can be. And then as we level out, we can slowly bring efficiency into the business as we go forward.
Chad Beynon: Perfect. Thank you. And then as it pertains to the cash that you’ll be bringing in from Texas Station and Fiesta Rancho, how should we think about the use of that capital? Is that kind of earmarked for 2024 CapEx? Or should we think about that being used potentially for additional dividends or share repurchases? Thanks.
Frank Fertitta: I think it went out the balance sheet has we do anything. And the first priority is to pay down the revolver.
Chad Beynon: Great. Thank you very much guys. Best luck on the opening.
Frank Fertitta: Thank you.
Operator: Next question comes from Joe Stauff with Susquehanna. Please go ahead.
Joe Stauff: Thank you. Scott, you had mentioned the kind of the second derivative, call it benefit from Union Culinary negotiation. I was wondering is there any like history you could share with us or possibly frame the size of that consumer group for you guys. And then, second question was maybe in the quarter or current trends, if you see any difference maybe in customer behavior, say, within your six larger portfolio or your six larger properties? Thank you.
