Thousands of workers are preparing to stage a strike today at eight properties owned by major casino industry players MGM Resorts (NYSE:MGM) and Caesars (NASDAQ:CZR) Entertainment on the Las Vegas Strip. The Culinary Workers Union has sanctioned the demonstration, instructing its members not to cross active picket lines at various locations. This action marks a 20-year gap since the last similar event.
The demonstration is scheduled in two slots, from 10 a.m. to noon and 5-7 p.m., across multiple locations including Aria, Bellagio, Excalibur, Luxor, Mandalay Bay, MGM Grand, New York-New York, Park MGM, Caesars Forum, Caesars Palace, Flamingo, Harrah’s, Horseshoe, Paris, Planet Hollywood, The Cromwell, The Linq and Wynn Resorts (NASDAQ:WYNN).
Las Vegas's formidable unions are aggressively advocating for wage augmentation in response to substantial pandemic-induced job cuts. Despite a 7% slump in tourism compared to pre-COVID-19 figures, hotel room rates have dramatically inflated by over 30%. The Culinary and bartender unions are calling for wage escalations, protective measures against technology-driven job losses, scaled-down housekeeping targets, and fortified safety measures.
According to InvestingPro data, MGM Resorts has a market cap of 13.05B USD with a P/E ratio of 38.31. This is indicative of the company's high earnings multiple, as pointed out in the InvestingPro Tips. It's worth mentioning that MGM's management has been aggressively buying back shares, which could be a sign of their confidence in the company's future. However, the same tips also highlight that MGM's revenue growth has been slowing down recently, and its stock price movements are quite volatile.
On the other hand, Caesars Entertainment has a market cap of 9630M USD and a lower P/E ratio of 13.91. This could be a reflection of the company's more conservative valuation. The company is expected to be profitable this year, as per InvestingPro Tips. Yet, it should be noted that Caesars' stock price has fared poorly over the last month, with a 1-month price total return of -18.84%.
The upcoming Formula 1 Las Vegas Grand Prix is predicted to bring in an additional 100,000 tourists. Amid these circumstances, union members are set to stage demonstrations at eight prominent MGM Resorts and Caesars casinos. Union negotiations are also ongoing with Wynn Resorts.
This action follows a citywide strike endorsed by 95% of union members. In the aftermath of this strike, the unions engaged in negotiations with MGM Resorts, Caesars Entertainment, and Wynn Resorts - the city's premier private employers. These negotiations have been protracted and continue as the strike looms.
For more in-depth insights and tips on MGM Resorts and Caesars Entertainment, readers can visit InvestingPro's MGM page and InvestingPro's CZR page. These pages offer a wealth of additional tips and real-time metrics, providing a more comprehensive understanding of these companies' financial health and future prospects.
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