Churchill CEO sees steady Derby business after record year
Churchill Downs Inc. might be pausing some of its capital projects at the home of the Kentucky Derby, but it is full steam ahead on this year’s event and CEO Bill Carstanjen told investors to expect similar business levels off last year’s record.
Kentucky Derby week in 2024 generated about $28 million in adjusted earnings. That represented about 2.3% of the company's $1.2 billion in adjusted earnings for 2024. Both figures were records, and the Derby earnings were an increase from a record 2023.
In a conference call Thursday morning, Carstanjen stopped of telling investors that the encore will be louder than last year’s performance, but he expects the company’s top brand to maintain the record level through Kentucky Derby day May 3 at Churchill Downs.
"We are expecting another extraordinary week for our guests with racing and festivities we’re all looking forward to," Carstanjen said. "Derby is strong and continues to grow. Derby 150 was a big step up in all of our metrics, and I’m pleased that this year will be comparable to that and then hopefully our growth trajectory continues in 2026.
"The buzz for the Derby seems to grow every year, but there is some hesitancy in the market. I can’t say that’s less money in wallets, but consumers are hesitant."
Churchill Downs referenced international tariffs as one of the reasons for dialing back the capital expenditures in 2026, but another consideration could be the soft response to its newest areas such as the starting-gate suites.
"We’ve seen a difference on the lower-end ticket sales for Derby, but the demand is so strong for the event that won’t show up when you see the crowds," Carstanjen said. "It won’t impact our performance in any material way, but I can’t tell you (the investors) that there are not macroeconomic uncertainties that are impacting businesses. I don’t see a long-term impact on the Kentucky Derby, but I can’t not acknowledge it’s a tough environment."
Acknowledging that environment in its own way was Wall Street, as the Churchill stock, which trades under the symbol CHDN, was down about 14% to $90.01 per share at mid-morning, the first time since fall 2020 that it has traded below $91.