Red Rock Resorts, Inc. (NASDAQ:RRR) Q3 2023 Earnings Call Transcript

Frank Fertitta: Yeah. The first one, I think I’m going to answer you appropriately with the information we have. I think that the size and scale or the quantum of culinary workers is somewhere around 60,000 culinary workers. Now how that monetizes within the company, we couldn’t measure that. It’s more anecdotal. And then, I think you had asked in your second question, just if there’s any changes in the four, six properties from a financial perspective?

Joe Stauff: Yeah, just in customer behavior and trends.

Frank Fertitta: Yeah. Look, I think it’s been pretty consistent with what we’ve said in the past. The higher end of our database is doing better than the lowest end of our database. Some of that may be macroeconomic pressures, which we’ve been living with for a while. And part of it is by design within our operating strategy to focus on higher-profit customers and bring on amenities that are catered to higher profit customer base or higher spend per visit. But I don’t think there’s anything in the database right now that would give us any cost for a while or would say is off trend from where we’ve been.

Joe Stauff: Thanks.

Operator: The next question comes from John DeCree with CBRE. Please go ahead.

John DeCree: Yeah everyone. Maybe just one question related to North Fork, some comments in the prepared remarks. But with one case left, would that preclude you from — and your partner from going full speed ahead and if not, any thoughts on timing or how we should think about getting started or pick up the pace on the North Fork project.

Frank Fertitta: Yeah. I don’t think the court case, as we said in the prepared remarks, has any bearing on timing of when we start for finance this project.

John DeCree: Okay. So we — I guess, should assume getting started construction is kind of a priority at this point?

Frank Fertitta: 100% in the first — we’re waiting on the management agreement, that’s the linchpin. John, so as soon as we get that, we are out raising money and then starting construction.

Frank Fertitta: Yes, to the management agreement gets approval from ITC

John DeCree: Okay. And I guess, any guess as to when that’s done is probably a tough one to handicap, but I don’t know if you guys have a–

Stephen Cootey: Now, listen, we feel like we’re close, it’s tough to handicap, but we did make a couple of changes to those North Fork remarks. So, we’re making good progress.

John DeCree: Sounds good. Appreciate guys. Thanks again.

Operator: [Operator Instructions] The next question comes from David Katz with Jefferies. Please go ahead.

David Katz: Afternoon. Apologies if we’re over discussing the F1 issue, but you commented earlier that room rates have come down a little bit. First, did you — is that specific to your own portfolio? Or did you intend that, that might be more of a broader market comment? And then how instructive is this F1 in terms of — right, you said Super Bowl is going great or looking great, but this one has backed off a little bit. How can that help us in the future figure out which events are good versus great for you?

Frank Fertitta: Look, I think that was more of a broader market commentary, and similar just looking at rates on Expedia or kind of what hotels are being booked for now versus kind of maybe where rates were published going back months to a year ago. So, it’s all public data.