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Wynn Resorts (WYNN) Plans to Launch a New Restaurant Concept

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In a bid to maintain its position in the intensively competitive gaming and lodging industry, Wynn Resorts Ltd. (WYNN - Free Report) continues to expand its reach. Wynn Las Vegas recently announced that it plans to launch Elio, a social dining concept on Mar 19, 2020. Notably, the new restaurant will be opened in collaboration with Enrique Olvera, Daniela Soto-Innes and Santiago Perez of ATM Group.

ATM Group is a leading hospitality company that presently has restaurants namely Cosme and Atla in New York and Pujol in Mexico.

Meanwhile, Elio, situated adjacent to Encore Beach Club, will draw inspiration from Mexico’s rich culinary traditions thereby providing guests with exquisite service and exceptional food in an energetic environment.

The company seems confident about the opening of this restaurant as it will help in expanding its portfolio of distinguished restaurants.

Strategic Initiatives Bode Well

Given its strong brand name, Wynn Resorts is better positioned to command a premium rate compared with peers in the gaming and lodging industry. Moreover, the company recently opened Encore Boston Harbor in Massachusetts. It stated that it will upgrade Encore Boston Harbor to be the top performing Casino in the northeast.

Additionally, the company also anticipates to open three new restaurants with a dynamic concept at Wynn Las Vegas during 2020.

The company is focusing on domestic expansion. In order to enhance performance in Las Vegas, it has remodeled rooms at its properties and the baccarat pit. Though tourism in Las Vegas has not yet reached the pre-recession level, the company is on its way to recovery. The number of visits has been improving every year.

Backed by the optimism surrounding tourism in Las Vegas and increasing visitation pattern, revenues are likely to grow significantly. In third-quarter 2019, revenues from Las Vegas operations were $399.5 million, flat year over year. Room revenues increased 4.9% to $116.1 million.

Shares of Wynn Resorts have gained 27.6% in the past year as compared with its industry’s growth of 14.9%.

Zacks Rank & Key Picks

Currently, Wynn Resorts, which shares space with MGM Resorts International (MGM - Free Report) , has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the same space include Churchill Downs Incorporated (CHDN - Free Report) and Accel Entertainment, Inc. (ACEL - Free Report) each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Churchill has an impressive long-term earnings growth rate of 20%.

Shares of Accel have gained 19.9% in the past year.

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