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Marcus Corp. (MCS)
NYSE:MCS
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Marcus
(NYSE:MCS)
Rating:60Neutral
Price Target:
$17.50
▲(4.35%Upside)
Positive Factors
Box Office Performance
The second quarter box office has gotten off to an exceptional start with April box office more than doubling YOY and in line with the average for April box office from 2015-2019.
Financial Strategy
With $7.1M in share repurchases during the quarter and continued reinvestment in high-ROI assets like the Hilton Milwaukee, the company is balancing capital returns with asset value creation and remains well-positioned as a recovery and defensively oriented play.
Upcoming Film Releases
Early Q2 momentum is building with A Minecraft Movie, Sinners, and Thunderbolts exceeding expectations, validating our view that a strong 2Q film slate could drive upside.
Negative Factors
Cost Pressures
Elevated film costs and labor drag are expected to pressure concession margin as staffing expenses were misaligned with actual delivered attendance.
Theatrical Segment Challenges
Marcus's theatrical segment likely faced a tough 1Q, with flat to down admissions and pressured margins driven by elevated film rental costs from holiday holdovers and labor inefficiencies tied to the surprise collapse of Snow White.
Marcus (MCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$510.70M
Dividend Yield1.68%
Average Volume (3M)163.22K
Price to Earnings (P/E)―
Beta (1Y)0.46
Revenue Growth4.18%
EPS Growth-207.46%
CountryUS
Employees2,907
SectorCommunication Services
Sector Strength88
IndustryEntertainment
Share Statistics
EPS (TTM)-0.54
Shares Outstanding24,312,990
10 Day Avg. Volume148,080
30 Day Avg. Volume163,221
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)1.25
Price to Sales (P/S)0.00
P/FCF Ratio-174.35
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda2.96
Forecast
1Y Price Target
$24.67Price Target Upside47.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Marcus Business Overview & Revenue Model
Company DescriptionMarcus (MCS) is a financial services company that operates primarily in the consumer banking sector. It offers a range of products and services, including savings accounts, personal loans, and investment management solutions. Marcus aims to provide transparent, user-friendly financial solutions to help individuals manage their personal finances effectively.
How the Company Makes MoneyMarcus makes money through the interest rate differential on its lending and savings products. It earns revenue from interest charged on personal loans and credit products, while paying out lower interest rates on customer deposits held in savings accounts. Additionally, Marcus may generate income from investment advisory services and management fees associated with its investment products. Strategic partnerships with other financial institutions and technology companies also contribute to its revenue streams by expanding its customer base and enhancing its product offerings.
Marcus Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 2.76%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Marcus Corporation. While there were positive aspects such as revenue growth in both divisions, a strong April for theaters, and a robust balance sheet, challenges included an operating loss in the theater division, occupancy impacts from hotel renovations, and increased costs affecting profitability. The positive outlook for the summer movie season and strategic capital returns to shareholders provide some optimism.Q1-2025 Updates
Positive Updates
Revenue Growth in Both Divisions
Consolidated revenues increased by $10.2 million or 7.4% compared to the prior year, reaching $148.8 million. This growth was observed in both the theaters and hotels divisions.
Positive April and Summer Outlook for Theaters
April saw a turnaround with several films exceeding expectations, contributing to a strong start for the summer movie season. The industry is up nearly 16% year-to-date through April, with upcoming major releases contributing to a positive outlook.
Hotel Division RevPAR and Revenue Growth
Hotels and resorts revenues increased by 7.2% to $61.3 million. RevPAR for comparable owned hotels grew by 1.1%, with an 8% increase in the average daily rate.
Strong Balance Sheet and Liquidity
The company ended the quarter with $12 million in cash and over $192 million in total liquidity, maintaining a debt-to-capitalization ratio of 31% and net leverage of 2x.
Successful Capital Return to Shareholders
The company repurchased approximately 424,000 shares for $7.1 million, and over the last four quarters, returned over $25 million to shareholders through dividends and share repurchases.
Negative Updates
Theater Division Operating Loss and Attendance Decrease
Operating loss for the quarter was $20.4 million, negatively impacted by increased costs. Theater attendance decreased by 8% on a straight calendar quarter basis, trailing the industry by 1.8 percentage points.
Renovation Impact on Hotel Occupancy
The Hilton Milwaukee renovation led to a 3.4 percentage point decrease in overall occupancy rate and negatively impacted RevPAR growth by nearly 4 percentage points.
Increased Costs and Decreased Adjusted EBITDA
Consolidated adjusted EBITDA was a loss of $300,000, a decrease of $2.6 million. Increased depreciation, stock-based compensation, and labor costs contributed to this decline.
Company Guidance
In the call, Marcus Corporation provided guidance for the first quarter of fiscal 2025, highlighting several key metrics. The company reported consolidated revenues of $148.8 million, an increase of $10.2 million or 7.4% from the previous year, with the theater division contributing $87.4 million, up 7.5%, and the hotels and resorts division contributing $61.3 million, up 7.2%. The favorable impact of a fiscal calendar change accounted for $9.2 million in revenue growth. However, the company faced an operating loss of $20.4 million, an improvement of $3.7 million from the prior year, partly due to increased depreciation expenses and non-cash stock-based compensation. Despite challenges, including higher film and labor costs, the theater division's adjusted EBITDA was $3.7 million, while the hotels segment achieved $1 million in adjusted EBITDA. Marcus Corporation ended the quarter with $12 million in cash and $192 million in total liquidity, maintaining a debt-to-capitalization ratio of 31% and net leverage of 2x. The company also repurchased 424,000 shares for $7.1 million, reflecting confidence in its business and commitment to returning capital to shareholders.Marcus Financial Statement Overview
Summary
Marcus shows growth potential in revenue and operational efficiency, but profitability remains a challenge with consistent net losses. The balance sheet displays moderate leverage with a stable equity position, while cash flow generation is strong but under pressure due to high capital expenditures. Overall, the company exhibits resilience but faces profitability and cash flow challenges that need addressing for long-term sustainability.Income Statement
The company has demonstrated consistent revenue growth over the years, with a recent TTM increase. Gross profit margins have improved, reflecting operational efficiency. However, profitability remains a concern with negative net income and EBIT in the latest TTM and previous annual reports.65
Positive
Balance Sheet
The debt-to-equity ratio reflects moderate leverage, and the company maintains a healthy equity ratio. However, the decline in stockholders' equity over the recent periods is a concern that could impact future financial stability.70
Positive
Cash Flow
Operating cash flow remains positive, indicating strong cash generation capability. However, free cash flow has turned negative in the TTM, indicating potential challenges in covering capital expenditures. The cash flow to net income ratios indicate a need for improvement in converting profits into cash.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 745.78M | 735.56M | 729.58M | 677.39M | 458.24M | 237.69M |
| Gross Profit | 378.75M | 327.84M | 323.96M | 257.39M | 183.74M | 51.14M |
| EBITDA | 75.54M | 68.72M | 101.67M | 74.53M | 31.84M | -104.47M |
| Net Income | -12.74M | -7.79M | 14.79M | -9.10M | -43.29M | -124.87M |
Balance Sheet | ||||||
| Total Assets | 1.44B | 1.04B | 1.07B | 1.06B | 1.19B | 1.25B |
| Cash, Cash Equivalents and Short-Term Investments | 126.47M | 40.84M | 60.95M | 21.70M | 17.66M | 6.75M |
| Total Debt | 631.32M | 352.63M | 379.06M | 407.77M | 515.10M | 563.47M |
| Total Liabilities | 843.00M | 579.66M | 593.93M | 607.68M | 734.75M | 755.46M |
| Stockholders Equity | 598.39M | 464.87M | 471.17M | 456.92M | 453.61M | 498.72M |
Cash Flow | ||||||
| Free Cash Flow | -3.07M | 24.73M | 63.85M | 56.37M | 29.17M | -89.92M |
| Operating Cash Flow | 83.71M | 103.94M | 102.63M | 93.21M | 46.25M | -68.55M |
| Investing Cash Flow | -83.92M | -81.90M | -36.75M | -346.00K | 10.88M | -12.07M |
| Financing Cash Flow | -4.62M | -37.30M | -30.55M | -92.41M | -47.17M | 69.10M |
Marcus Technical Analysis
Negative
16.77
Price Trends
17.01
Negative
17.59
Negative
18.26
Negative
Market Momentum
-0.06
Positive
42.50
Neutral
28.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCS, the sentiment is Negative. The current price of 16.77 is below the 20-day moving average (MA) of 17.42, below the 50-day MA of 17.01, and below the 200-day MA of 18.26, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 28.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCS.
Marcus Risk Analysis
Marcus disclosed 29 risk factors in its most recent earnings report. Marcus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marcus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $3.47B | 19.95 | 71.46% | 1.06% | -0.80% | 13.07% | |
61 Neutral | $40.08B | -1.19 | -13.44% | 3.97% | 2.29% | -73.14% | |
60 Neutral | $510.70M | ― | -2.83% | 1.68% | 4.18% | -207.46% | |
60 Neutral | $1.42B | ― | -15.64% | ― | -5.04% | -155.66% | |
57 Neutral | $268.67M | 13.94 | -25.83% | ― | -8.14% | -258.98% | |
47 Neutral | $1.29B | ― | 20.03% | ― | -5.43% | 26.07% | |
42 Neutral | $45.64M | ― | -540.12% | ― | -7.36% | 18.52% |
* Communication Services Sector Average
Performance Comparison
MCS
Marcus
16.77
5.58
49.87%
AMCX
AMC Networks
6.29
-3.37
-34.89%
CNK
Cinemark Holdings
30.10
8.60
40.00%
AMC
AMC Entertainment
3.07
-1.91
-38.35%
RDI
Reading International
1.23
-0.19
-13.38%
SPHR
Sphere Entertainment
42.47
7.41
21.14%
Marcus Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Marcus Approves 2025 Omnibus Incentive Plan
Positive
May 12, 2025
On May 7, 2025, The Marcus Corporation’s 2025 Omnibus Incentive Plan became effective following shareholder approval at the annual meeting. This plan allows for equity and cash incentive awards, including the issuance of up to 2,000,000 shares of common stock. The plan’s approval impacts the company’s operations by enabling it to offer substantial incentives to employees, potentially enhancing employee retention and aligning their interests with those of shareholders.
The most recent analyst rating on (MCS) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Marcus stock, see the MCS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.