Here's Why Investors Should Retain Wynn Resorts Stock Now

Core Viewpoint - Wynn Resorts, Limited (WYNN) is expected to benefit from strong performance in Macau, growth in non-gaming businesses, and ongoing development projects, although rising operating expenses present a concern [1][9]. Group 1: Growth Drivers - Wynn Resorts reported $263 million in EBITDA from Macau in Q3, marking a 3% year-over-year increase, with operating revenues growing by 6% due to a 10% rise in combined mass table and slot win [3]. - October saw a significant increase in mass table drop, with a nearly 30% surge compared to the previous year, and hotel occupancy reached 99% during the Golden Week holiday [3]. - The company is enhancing its food and beverage offerings in Macau, including new venues and a destination food hall set to launch in mid-2025, which are expected to drive future growth [4]. - Las Vegas operations showed sustained demand with normalized revenues up by about 1% year-over-year, and hotel revenues increased by 5% [5]. - The Wynn Al Marjan Island project in the UAE is anticipated to tap into a projected $3 billion to $5 billion gaming market, with construction progressing rapidly [6]. Group 2: Shareholder Value - Wynn Resorts has increased its share repurchase authorization to $1 billion and declared a cash dividend of 25 cents per share, reflecting management's confidence in the company's valuation [7]. - The company reduced gross debt by $1.2 billion year-over-year, resulting in annual interest expense savings of $70 million, which strengthens its balance sheet [7]. Group 3: Concerns - Increased operating expenses are a concern, with casino costs rising to $617.5 million from $577.7 million year-over-year, and general and administrative expenses increasing to $271.8 million from $268.4 million [9]. - In the past year, WYNN shares gained 5%, underperforming the industry average rise of 27.2%, primarily due to a challenging macro environment [8].