“The Strength of Content Continues”; Cineplex Stock (TSE:CGX) Gains on Revenue Growth

While Canadians may be having a tough time making ends meet these days with the economic downturn and tariff woes, one thing they demonstrate is just how much value there is in getting away from it all for a couple hours with a night at the movies. Canadian movie theater chain Cineplex (TSE:CGX) delivered for Canadians, and in the process, saw foot traffic and revenue gain. This was good enough for investors, though not particularly good overall, as shares gained, but only fractionally in Tuesday morning’s trading.

Back in March, we heard about excellent results for Cineplex, thanks to an improving pipeline of good quality releases—or at least as good quality as Hollywood gets—coming out for theatrical viewing. That trend continued, thanks to the live-action remake of How to Train Your Dragon, as well as Final Destination: Bloodlines, among others. That gave Cineplex a May 2025 box office revenue figure of C$55.3 million, which is up a whopping 163% when compared to February 2024.

With plenty more set to emerge, and Canadians being already clearly amenable to paying movie theater prices to see said content, it is looking like a pretty solid summer ahead for Cineplex. It had already seen a “record-breaking” April, reports noted, and carrying on into May delivered welcome results. So with the rest of the summer blockbuster season ahead, this trend could continue.

Making Hay While the Sun Shines

And Cineplex is not taking this trend lightly, either. It is instead capitalizing on it by offering up a line of movies at C$3.99 as part of its “Family Favourites” program. These movies run Saturdays only, and offer up a range of titles including The Bad Guys and Dog Man to round out June. Reports suggest the program will run through the summer, but the titles for the rest of the season are not yet available.

But Cineplex may no longer be available for some viewers, as the Cineplex Cinemas Queensway is potentially slated for demolition. By the end of June, the city council will be deciding whether or not the theater should be torn down to be replaced by 10 towers’ worth of condos. Though certainly, Canada’s housing shortage could be helped significantly by a whopping 4,000 new condos, the move would disadvantage a lot of area residents, including members of the disabled group Got Your Back, who go to the theater on a biweekly basis to get out into the community.

Is Cineplex a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:CGX stock based on four Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 55.14% rally in its share price over the past year, the average TSE:CGX price target of C$13.48 per share implies 18.21% upside potential.

See more TSE:CGX analyst ratings

Disclosure