{"id":221821,"date":"2022-07-18T14:22:04","date_gmt":"2022-07-18T19:22:04","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=221821"},"modified":"2022-07-19T11:54:21","modified_gmt":"2022-07-19T16:54:21","slug":"caesars-primed-for-consumer-spending-lift-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/","title":{"rendered":"Caesars Could Benefit from Consumer Spending Shift"},"content":{"rendered":"

Caesars Entertainment (NASDAQ:CZR) is among the casino operators that could benefit as consumers direct more discretionary spending toward services away from goods, according to a research firm.<\/p>\n

\"Caesars\"
Caesars Palace Las Vegas. Morningstar sees Caesars stock benefiting from shifts in consumer spending. (Image: Bloomberg<\/em>)<\/figcaption><\/figure>\n

During the initial days of the coronavirus pandemic, consumer spending largely focused on goods. Conversely, services, such as nearly anything related to travel, languished due to pandemic-related restrictions, reduced airline flight offerings, and vaccine requirements, among other factors. That trend is reversing, and it could benefit travel and leisure equities, including casino operators.<\/p>\n

As spending shifts back to services, one of the areas that we think is best poised to benefit is the travel and entertainment industry. This sector includes air travel, cruise lines, gaming, hotels, and ride-hailing, and is supported by technology providers dedicated to the travel sector,\u201d writes Morningstar analyst Dave Sekera.<\/p><\/blockquote>\n

There\u2019s something to that thesis, as the American Gaming Association (AGA) last week noted that May 2022 was the best May on record for the domestic and commercial casino industry, with gross gaming revenue (GGR) of $5.1 billion<\/a>, representing the industry\u2019s second-best month on record. That\u2019s particularly relevant for Caesars because it\u2019s the largest casino operator in the country by number of venues.<\/p>\n

Caesars Has Goods to Capitalize<\/h2>\n

As with other gaming equities, Caesars is slumping this year<\/a>. The shares are sagging due to culprits such as inflation and margin concerns. On the bright side, margin concerns may be exaggerated, and Caesars may have some momentum on that front.<\/p>\n

\n

Additionally, Harrah\u2019s parent is the second-largest on the Las Vegas Strip — a status that is vital to the underlying investment thesis. Sin City is amidst one of its best GGR stretches ever. That\u2019s taking place with still-slack Sunday through Wednesday occupancy rates, indicating that casino companies such as Caesars could benefit in a material fashion when convention and meeting business returns in earnest.<\/p>\n<\/div>\n

\u201cWith over 60 million members in its industry loyalty program, leadership in digital and sports gaming, and additional synergies to be derived from its merger with Eldorado in 2020, we think Caesars is the best positioned to benefit from the recovery in the gaming industry,\u201d notes Sekera.<\/p>\n

The Morningstar analyst adds MGM Resorts International (NYSE:MGM)<\/a> is another potential beneficiary of elevated consumer services spending. The research firm has five-star and four-star ratings on Caesars and MGM.<\/p>\n

Hotel Rebound Could Lift Caesars<\/h2>\n

Obviously, getting guests to the tables and slot machines is a vital part of the casino business model. But for integrated resort operators like Caesars, filling hotel rooms is nearly as important.<\/p>\n

On that front, there\u2019s evidence of a potential rebound materializing, which could gather more momentum in 2023, assuming conventions return to Las Vegas.<\/strong><\/p>\n

\u201cAs vacations were postponed and business trips canceled in 2020, on average, the amount of revenue per available room dropped more than 60% across the hotel industry,\u201d concludes Sekera. \u201cRevenue and occupancy levels began to rebound in 2021, and in 2022, we expect that many hotels will return to 90% of their pre-pandemic levels. Generally, we expect the hotels under our coverage to return to pre-pandemic levels in 2023.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars Entertainment (NASDAQ:CZR) is among the casino operators that could benefit as consumers direct more discretionary spending toward services away from goods, according to a research firm. During the initial days of the coronavirus pandemic, consumer spending largely focused on goods. Conversely, services, such as nearly anything related to travel, languished due to pandemic-related restrictions, […]<\/p>\n","protected":false},"author":46,"featured_media":221822,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nCaesars Primed For Consumer Spending Lift, Says Analyst<\/title>\n<meta name=\"description\" content=\"Caesars could be boosted by shift to consumer services spending.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Primed For Consumer Spending Lift, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Caesars could be boosted by shift to consumer services spending.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-18T19:22:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-19T16:54:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"801\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/\",\"name\":\"Caesars Primed For Consumer Spending Lift, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg\",\"datePublished\":\"2022-07-18T19:22:04+00:00\",\"dateModified\":\"2022-07-19T16:54:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars could be boosted by shift to consumer services spending.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg\",\"width\":1200,\"height\":801,\"caption\":\"Caesars Palace Las Vegas. Morningstar sees Caesars stock benefiting from shifts in consumer spending. (Image: Bloomberg)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Caesars Could Benefit from Consumer Spending Shift\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Caesars Primed For Consumer Spending Lift, Says Analyst","description":"Caesars could be boosted by shift to consumer services spending.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Caesars Primed For Consumer Spending Lift, Says Analyst","og_description":"Caesars could be boosted by shift to consumer services spending.","og_url":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-07-18T19:22:04+00:00","article_modified_time":"2022-07-19T16:54:21+00:00","og_image":[{"width":1200,"height":801,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/","url":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/","name":"Caesars Primed For Consumer Spending Lift, Says Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg","datePublished":"2022-07-18T19:22:04+00:00","dateModified":"2022-07-19T16:54:21+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Caesars could be boosted by shift to consumer services spending.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/CP2.jpg","width":1200,"height":801,"caption":"Caesars Palace Las Vegas. Morningstar sees Caesars stock benefiting from shifts in consumer spending. (Image: Bloomberg)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/caesars-primed-for-consumer-spending-lift-says-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Caesars Could Benefit from Consumer Spending Shift"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/221821"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=221821"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/221821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/221822"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=221821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=221821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=221821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}