MGM to Bring Tom's Urban, Shake Shack to Vegas

Zacks Equity Research

As a part of the post-recessionary strategy, Las Vegas casino resorts are aggressively marketing its new convention facilities to cater to the customers who are flocking back to the Sin City. Consistent with this trend, New York-New York Hotel & Casino — a fully owned subsidiary of MGM Resorts International (MGM) — is set to introduce popular restaurants, Tom's Urban and Shake Shack. The restaurants will be located at its renovated portico featuring a remodeled public plaza — Dynamic Pedestrian Plaza — in Las Vegas Strip.

The public plaza, opened in March this year, overlooks the famous Brooklyn Bridge, besides MGM Resorts’ forthcoming park and entertainment area. Both the restaurants are scheduled to open in December this year.

Owned by Tom Ryan, Denver-based Tom's Urban is a 24-hour diner joint. The restaurant serves burgers, pizzas, sandwiches, tacos and burritos for breakfast as well as lunch, in addition to a host of other specialty dishes.

Another modern day favorite restaurant, Shake Shack will join Tom's Urban at the Plaza. The New York-based restaurant chain serves hamburgers, hot dogs and frozen custard, shakes, along with alcoholic drinks. This restaurant will mark Shake Shack’s debut in Las Vegas.

Tom's Urban and Shake Shack will replace The Sporting House, which will be downing its shutters on Jun 3. A Starbucks Corporation (SBUX) unit along with The Hershey Company’s (HSY) Hershey's Chocolate World, scheduled to open at the Plaza by the end of spring this year, are expected to complement the two restaurants.

The city of Las Vegas is well known for gambling, shopping, fine dining and its nightlife. The public plaza is located in the gambling and entertainment hub of the city. With the Las Vegas economy finally recovering from the recession and tourists returning to the city, New York-New York Hotel & Casino is seeking to capitalize on the surge in demand for dining.

Currently, MGM Resorts boasts a Zacks Rank #2 (Buy). Another better-ranked stock in the same sector is Wynn Resorts Ltd. (WYNN), which sports a Zacks Rank #1 (Strong Buy).

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