Churchill Downs, Incorporated (CHDN) Stock Price & How to Invest

Churchill Downs Incorporated operates through three reportable segments: Live and Historical Racing (the Churchill Downs Racetrack that hosts the Kentucky Derby plus Derby City Gaming and a growing fleet of historical racing machine, or HRM, venues in Kentucky and Virginia), Wagering Services and Solutions (the TwinSpires online horse-race wagering platform, the Exacta HRM technology business, and United Tote), and Gaming (regional casino and racetrack properties). The Kentucky Derby remains the crown jewel, generating record luxury ticket sales and TV audiences, while HRM parlors have become the primary growth engine as new venues open across Kentucky and Virginia.

The investment picture is that of a capital-intensive, highly leveraged operator building durable local-monopoly gaming assets on top of a one-of-a-kind sporting franchise. In 2025 the company posted record net revenue of roughly $2.9 billion and net income near $383 million, and it opened Marshall Yards Racing and Gaming in early 2026 while agreeing to buy the Preakness and Black-Eyed Susan intellectual property for about $85 million. The bull case rests on continued HRM expansion and Derby pricing power, the bear case on a large debt load, rising interest costs, and sensitivity to discretionary consumer spending.

Churchill Downs carries substantial leverage, with net debt of roughly $4.9 billion and a debt-to-equity ratio well above peers, which magnifies both returns and downside as interest costs and maturities in 2027 and 2028 come due. The business is exposed to discretionary consumer spending, so a weaker economy could pressure gaming volumes and Derby-week spend. Large capital projects and acquisitions carry execution and financing risk, and regional gaming faces competition and potential regulatory or tax changes. HRM legality and expansion depend on state-by-state rules that could shift. Concentration in a single flagship event also means weather, safety, or reputational issues around the Derby carry outsized weight.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Churchill Downs, Incorporated's investor relations page or your broker.

• Revenue (TTM): ~$2.9B
• FY2025 net income: ~$383M
• Q1 2026 revenue: ~$663M (record)
• Q1 2026 adjusted EBITDA: ~$257M (record)
• Market cap: ~$5.8B
• P/E (approx): ~15-17x

Churchill Downs trades at a mid-teens earnings multiple after record Q1 2026 revenue of about $663 million and adjusted EBITDA near $257 million, with diluted EPS of $1.16. The valuation reflects steady growth alongside heavy leverage (net debt around $4.9 billion), so much of the equity story hinges on HRM expansion continuing to compound EBITDA faster than interest costs rise.

There are three common ways to get CHDN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so CHDN sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where CHDN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

CHDN pairs an irreplaceable Kentucky Derby franchise with a fast-growing historical-racing machine footprint, balanced against heavy leverage and a maturing consumer.

Whether CHDN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is CHDN a buy?, and where the stock could go from here in the CHDN stock forecast.

For income investors, whether CHDN pays a dividend and how the payout looks is covered in does CHDN pay a dividend?