Monarch Casino & Resort, Inc. (MCRI): A Bull Case Theory

We came across a bullish thesis on Monarch Casino & Resort, Inc. on FluentInQuality’s Substack. In this article, we will summarize the bulls’ thesis on MCRI. Monarch Casino & Resort, Inc.'s share was trading at $91.99 as of January 13th. MCRI’s trailing and forward P/E were 21.05 and 15.41 respectively according to Yahoo Finance.

Monarch Casino & Resort, Inc. (MCRI) operates two destination properties — Atlantis Casino Resort Spa in Reno and Monarch Casino Resort Spa in Black Hawk near Denver — centered around a “play, stay, and service” model. The company blends full-service casinos, upscale hotels, diverse dining, spas, and entertainment to create a seamless guest experience that converts first-time visitors into loyal customers. Revenue stems from both gaming and non-gaming activities, with slots, tables, and sports wagering complemented by steady cash flow from rooms, food and beverage, spa services, and events.

A data-rich loyalty program deepens guest engagement, while yield management ensures optimized pricing across high and low demand periods. Monarch’s strategy of continuous reinvestment in slot product, hotel upgrades, and dining enhancements drives organic growth and reinforces its competitive edge. Operational discipline — spanning labor management, floor layout, and guest mix, supports consistent profitability, while drive-to regional markets provide steady midweek and weekend traffic.

Its two complementary locations balance a destination resort appeal in Reno with a high-frequency property in Black Hawk, providing diversification across customer bases. The company’s focus on quality service, integrated amenities, and refined value positioning attracts a broad clientele, including leisure travelers, couples, and small conventions.

Under experienced leadership, Monarch has demonstrated a proven ability to upgrade assets and execute expansions, creating properties that sustain strong local and visitor engagement. With disciplined operations and a guest-first culture, MCRI has built a resilient business model that delivers consistent cash flow, community benefits, and long-term shareholder value.

Previously we covered a bullish thesis on MGM Resorts International (MGM) by David in April 2025, which highlighted MGM’s asset-light model, strong buybacks, and durable brand and real estate advantages. The company’s stock price has appreciated by 31.74% since our coverage, as the thesis on capital efficiency and resilience played out. FluentInQuality shares a similar view through Monarch Casino & Resort (MCRI), emphasizing disciplined operations and reinvestment in gaming and hospitality.

Monarch Casino & Resort, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held MCRI at the end of the second quarter which was 22 in the previous quarter. While we acknowledge the potential of MCRI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.