Detroit Casino Workers Reject New MGM Resorts Labor Deal
December 11, 2023
🌧️Trending News
MGM ($NYSE:MGM) Resorts International is a renowned American entertainment and hospitality company that is well-known for its casino resorts and other gaming activities. Recently, workers of MGM Resorts‘ casino in Detroit have rejected the new labor deal proposed by the company. This means that the workers are unsatisfied with the terms and conditions of the deal and do not want to accept it. They have raised several concerns regarding their salaries, working hours, and other benefits that were not addressed in the offered deal. The union representing the workers has gone on to demand better wages and improved working conditions for all employees. They have further argued that the current labor deal does not properly take care of their financial stability and leaves them with minimal job security.
The union has promised to keep fighting for better rights for the workers as negotiations continue. This move by the workers of MGM Resorts is likely to have far-reaching effects on the gaming industry in Detroit and beyond. While the company is yet to comment on the labor issue, it is clear that addressing the demands of the workers is essential for the successful operation of the resort. It is expected that a more suitable agreement will be reached soon.
Price History
On Monday, MGM Resorts International saw a slight increase in share price as the stock opened at $39.9 and closed at $40.3, up by 1.3% from the previous closing price of 39.8. However, the union representing the Detroit casino workers decided that the offer was not enough and voted down the proposal. This rejection of the agreement could now see negotiations continuing between MGM Resorts International and the union for an improved deal for casino workers. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MGM. More…
| Total Revenues | Net Income | Net Margin |
| 15.38k | 1.1k | -0.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MGM. More…
| Operations | Investing | Financing |
| 2.4k | 114.99 | -4.42k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MGM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 42.57k | 38.11k | 11.63 |
Key Ratios Snapshot
Some of the financial key ratios for MGM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.9% | -51.5% | 10.5% |
| FCF Margin | ROE | ROA |
| 9.7% | 24.0% | 2.4% |
Analysis
GoodWhale has conducted an analysis of MGM Resorts International’s fundamentals and found that their Star Chart score is 6/10, indicating that the company has intermediate health. This suggests that they are likely to be able to ride out any crisis without the risk of bankruptcy. Additionally, our analysis classified MGM Resorts International as a ‘cheetah’ company, which means that they have high revenue or earnings growth but their profitability levels are lower than average. Based on this analysis, we believe that MGM Resorts International would be an attractive investment opportunity for investors who are looking for companies with strong assets and growth potential, but may be less interested in dividends or short-term profitability. More…
Peers
MGM Resorts International is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay, The Mirage, and more. The company’s competitors include SkyCity Entertainment Group Ltd, Wyndham Hotels & Resorts Inc, and Cruzani Inc.
– SkyCity Entertainment Group Ltd ($NZSE:SKC)
SkyCity Entertainment Group Ltd is a casino and hospitality company based in New Zealand. The company has a market cap of 2B as of 2022 and a Return on Equity of 3.48%. SkyCity operates four casinos in New Zealand, two in Australia, and one in Chile. The company also has a number of hotels, restaurants, and bars.
– Wyndham Hotels & Resorts Inc ($NYSE:WH)
Wyndham Hotels & Resorts, Inc. is one of the largest hotel companies in the world, with over 9,000 hotels across more than 80 countries. The company offers a variety of hotel brands, including Wyndham, Ramada, Days Inn, Super 8, and Howard Johnson. Wyndham Hotels & Resorts is headquartered in Parsippany, New Jersey. The company’s market cap is 6.2B as of 2022 and its ROE is 30.65%.
Summary
MGM Resorts International is a hospitality and entertainment giant with hotel-casino operations in Las Vegas, Mississippi, Maryland and Detroit. Recently, the Detroit casino workers of the company have rejected a new labor deal. For investors, this decision may have both positive and negative impacts. On the plus side, the rejection of the deal may reduce the cost of labor, and thus improve margins and profitability.
On the downside, the instability created by the rejection may cause disruption in operations and negatively affect future revenue growth. It is important for investors to analyze these dynamics carefully before making any decisions.
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