Marcus Corporation: Strong Q1 Performance and Promising Outlook Make It a Buy

Benchmark Co. analyst Mike Hickey has reiterated their bullish stance on MCS stock, giving a Buy rating yesterday.

Mike Hickey has given his Buy rating due to a combination of factors that highlight Marcus’s strong performance and future potential. The company’s Q1 2025 revenue and AEBITDA exceeded expectations, with the theatrical segment showing increased attendance despite some margin pressures. This was complemented by the hotel segment’s positive AEBITDA, driven by strong demand at the Grand Geneva Resort & Spa and a robust ski season.
Looking forward, early Q2 momentum is promising, with films like A Minecraft Movie and Thunderbolts surpassing expectations, reinforcing the belief in a strong film slate for the quarter. Additionally, Marcus’s strategic investments in high-return assets and share repurchases indicate a balanced approach to capital management. With the stock trading at a discount to historical valuation multiples and a clear path to earnings normalization, Marcus is well-positioned for growth, making it an attractive investment opportunity.

In another report released yesterday, Barrington also maintained a Buy rating on the stock with a $25.00 price target.