Question · Q3 2025
Chad C. Beynon asked about the sustainability of Red Rock Resorts' cost management, noting a decrease in OpEx per day, and sought insights into future expectations for labor and utility expenses. He also requested clarification on the timing of top and bottom-line economics for the North Fork project, including any deferred payments.
Answer
Scott Kreeger (President, Red Rock Resorts Inc) and Stephen Cootey (EVP, CFO, and Treasurer, Red Rock Resorts Inc) confirmed that overall operating expenses were flat to down, with COGS flat and utilities/repairs down, while payroll was up due to a 3% raise. They believe these efforts are sustainable given rational marketing and strong operating team focus. Stephen Cootey detailed that development fees are being accrued, with an influx of cash upon successful opening, a true-up of fees, and cash interest on the $74.5 million note payable immediately upon opening, with the seven-year management agreement expected to generate $40-$50 million in fees upon stabilization.