Landry's Restaurants gambling division fell

Jul 28, 2009 5:04 PM
Earnings by Ray Poirier | The gambling division of Landry’s Restaurants Inc. (LNY) fell twice as much as the company’s restaurant and hospitality division causing the second quarter profit to fall 40 percent.

Profit for the period came in at $8.3 million or $0.50 per share compared to last year’s $13.9 million or $0.85 per share.

 Revenues for the restaurant and hospitality division fell eight percent to $464.1 million while gambling revenue, derived from the Golden Nugget properties in both Las Vegas and Laughlin, decreased by 17.5 percent to $112.5 million.

 CEO Tilman Fertitta said he felt very good about the restaurant side but he did not feel that good about gaming. He blamed cost cutting and lower rates at major Strip properties as a reason for the problems experienced at the Golden Nugget.