Marcus (NYSE:MCS) Announces Quarterly Earnings Results

Marcus (NYSE:MCS) announced its quarterly earnings results on Thursday. The company reported $0.60 EPS for the quarter, meeting the consensus estimate of $0.60, Zacks reports. The firm had revenue of $237.75 million during the quarter, compared to the consensus estimate of $235.65 million. Marcus had a net margin of 2.87% and a return on equity of 2.67%.

Here are the key takeaways from Marcus’ conference call:

• Positive Sentiment: The Marcus Corporation reported a record quarter, with revenue up 13.1% to $238 million, adjusted EBITDA up 21% to $49.1 million, and net earnings rising to $0.60 per share.
• Positive Sentiment: Theatres delivered record summer and third-quarter revenue, supported by strong blockbuster attendance, higher ticket prices, premium-format demand, and a 3.8% increase in comparable concession and food-and-beverage spending per guest.
• Neutral Sentiment: Hotels also posted record third-quarter revenue, but comparable RevPAR growth of 7.4% was tempered by softer group demand, lower banquet and catering revenue, and a severe storm at Grand Geneva that reduced adjusted EBITDA by approximately $500,000.
• Positive Sentiment: Management highlighted a strong balance sheet, including approximately $60 million of cash, more than $219 million of total liquidity, 0.8x net leverage, and continued capacity for growth investments and shareholder dividends.
• Positive Sentiment: The company expects a robust theatrical outlook, citing strong advance sales for Avengers: Doomsday, an attractive 2027 film slate, and improving group-room and banquet bookings for 2027, although elevated travel costs remain a risk.

Marcus Trading Down 0.1%

Shares of MCS stock traded down $0.02 on Thursday, hitting $28.20. 284,546 shares of the company’s stock traded hands, compared to its average volume of 187,274. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.44 and a current ratio of 0.44. Marcus has a one year low of $13.01 and a one year high of $32.42. The company’s fifty day simple moving average is $28.03 and its 200 day simple moving average is $21.90. The stock has a market capitalization of $869.50 million, a price-to-earnings ratio of 39.72 and a beta of 0.58.

Marcus Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, August 25th were paid a $0.09 dividend. This is a positive change from Marcus’s previous quarterly dividend of $0.08. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.3%. Marcus’s dividend payout ratio is currently 50.70%.

Analyst Ratings Changes

MCS has been the topic of a number of recent analyst reports. Weiss Ratings upgraded Marcus from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Zacks Research lowered Marcus from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 2nd. Barrington Research set a $33.00 target price on Marcus in a research report on Monday, August 3rd. Wedbush upped their target price on Marcus from $23.00 to $34.00 and gave the stock an “outperform” rating in a research note on Friday, July 31st. Finally, B. Riley Financial reaffirmed a “neutral” rating on shares of Marcus in a report on Monday, October 19th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $32.25.

Insider Buying and Selling

In other Marcus news, Director Diane M. Gershowitz sold 50,000 shares of the business’s stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $27.61, for a total value of $1,380,500.00. Following the completion of the sale, the director directly owned 125,617 shares of the company’s stock, valued at $3,468,285.37. The trade was a 28.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 16.53% of the stock is currently owned by insiders.

About Marcus

Marcus Corporation (NYSE: MCS) is an entertainment and hospitality company headquartered in Milwaukee, Wisconsin. Its principal businesses are conducted through Marcus Theatres and Marcus Hotels & Resorts.

Marcus Theatres operates movie theaters in the United States, primarily across the Midwest, under brands that include Marcus Theatres and Movie Tavern. Its theater operations offer film screenings, reserved seating, premium viewing formats, food and beverage service, and other cinema-related experiences.

Marcus Hotels & Resorts owns, manages, or operates hotels, resorts, restaurants, and related hospitality facilities in the United States.