Marcus Corp. (MCS)
NYSE:MCS
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Marcus
(NYSE:MCS)
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Rating:60Neutral
Price Target:
$17.50
▼(-7.55% Downside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by improving but still uneven financial performance (thin/volatile margins and weak recent free cash flow) and a mixed earnings-call outlook that hinges on a FY2026 capex step-down boosting free cash flow. Technicals are modestly supportive with price above key moving averages, while valuation is a notable drag due to the high P/E versus earnings consistency.
Positive Factors
Improving leverage / healthier balance sheet
Leverage has meaningfully moderated versus prior years, lowering financial risk and increasing flexibility. A ~0.73x debt/equity and stable equity base provide durable capacity to fund operations, opportunistic buybacks, or weather cyclical downturns without immediate refinancing strain.
Negative Factors
Thin, volatile margins and earnings-quality risk
Reported profitability has swung across recent years and includes atypical items, undermining confidence in underlying margin sustainability. An anomalous >100% gross margin suggests classification or one-time effects, raising persistent earnings-quality risk and complicating long-term margin forecasting.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage / healthier balance sheet
Leverage has meaningfully moderated versus prior years, lowering financial risk and increasing flexibility. A ~0.73x debt/equity and stable equity base provide durable capacity to fund operations, opportunistic buybacks, or weather cyclical downturns without immediate refinancing strain.
Read all positive factors
Marcus (MCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$569.38M
Dividend Yield1.97%
Average Volume (3M)142.41K
Price to Earnings (P/E)20.0
Beta (1Y)0.64
Revenue Growth6.28%
EPS GrowthN/A
CountryUS
Employees2,907
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.19
Shares Outstanding23,791,815
10 Day Avg. Volume107,821
30 Day Avg. Volume142,413
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)1.04
Price to Sales (P/S)0.63
P/FCF Ratio482.52
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit1.16
Enterprise Value/Ebitda9.98
Forecast
1Y Price Target
$23.50Price Target Upside24.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.56
Revenue Forecast (FY)$796.77M
Marcus Business Overview & Revenue Model
Company Description
The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates in two segments, Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion ...
How the Company Makes Money
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Marcus Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but stable picture: the company delivered a strong fourth quarter with both divisions outperforming industry peers and demonstrated meaningful per-cap and pricing gains, record hotel results, and a clear plan to reduce 2026 capex to boost free cash flow and return capital to shareholders. Offsetting these positives were full-year declines in adjusted EBITDA and operating income, a notable drop in cash flow from operations year-over-year, attendance declines in theaters, a Q4 impairment charge, and industry-wide variability tied to film supply and blockbuster performance. Management emphasized operational improvements, technology and loyalty initiatives, and disciplined capital allocation while acknowledging near-term headwinds and the one-time nature of some items.Positive Updates
Consolidated Quarterly Revenue Growth
Consolidated revenues for Q4 fiscal 2025 were $193,500,000, a 2.8% increase compared to the prior-year quarter, with revenue growth in both theater and hotel divisions.
Negative Updates
Attendance Declines Despite Revenue Gains
Comparable theater attendance decreased 5.7% in fiscal 2025 fourth quarter (and decreased 12.1% on a calendar quarter comparable basis). Management attributes revenue growth largely to price optimization and favorable film mix, not attendance gains.
Read all updates
Q4-2025 Updates
Positive
Negative
Consolidated Quarterly Revenue Growth
Consolidated revenues for Q4 fiscal 2025 were $193,500,000, a 2.8% increase compared to the prior-year quarter, with revenue growth in both theater and hotel divisions.
Read all positive updates
Company Guidance
Management guided fiscal 2026 total capital expenditures of $50.0–$55.0 million (down from $83.0M in FY2025), with roughly $25.0–$30.0M for hotels and $20.0–$25.0M for theaters, saying the CapEx decline should drive a significant increase in free cash flow and “very strong” free cash flow conversion to fund opportunistic growth investments and returns to shareholders (they plan to grow the quarterly dividend and continue opportunistic share repurchases). They reiterated a disciplined allocation approach, noted the theater segment historically contributes roughly 50% on contribution margin to EBITDA, said they remain “actively searching” for M&A while recognizing slow transaction markets, and reminded investors of recent capital returns (Q4 repurchases ~118k shares for $1.8M; ~1.1M shares repurchased in 2025, ~3.6% of outstanding, for ~$18M; cumulative buybacks since resuming in Q3 2024 >1.8M shares or ~5.7% for ~$28M; >$45M returned to shareholders over the last two years including dividends).Marcus Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
64
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 758.46M | 735.56M | 729.58M | 677.39M | 458.24M |
| Gross Profit | 777.95M | 327.84M | 286.54M | 257.39M | 183.74M |
| EBITDA | 90.37M | 68.72M | 101.67M | 80.41M | 31.84M |
| Net Income | 12.69M | -7.79M | 14.79M | -11.97M | -43.29M |
Balance Sheet | |||||
| Total Assets | 1.01B | 1.04B | 1.07B | 1.06B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 23.45M | 48.98M | 60.95M | 25.64M | 22.27M |
| Total Debt | 335.48M | 352.63M | 379.06M | 407.77M | 515.10M |
| Total Liabilities | 557.15M | 579.66M | 593.93M | 607.68M | 734.75M |
| Stockholders Equity | 457.38M | 464.87M | 471.17M | 456.92M | 453.61M |
Cash Flow | |||||
| Free Cash Flow | 989.00K | 24.73M | 63.85M | 56.37M | 29.17M |
| Operating Cash Flow | 84.20M | 103.94M | 102.63M | 93.21M | 46.25M |
| Investing Cash Flow | -71.37M | -81.90M | -36.75M | -346.00K | 10.88M |
| Financing Cash Flow | -30.82M | -37.30M | -30.55M | -92.41M | -47.17M |
Marcus Technical Analysis
Positive
18.93
Price Trends
16.25
Positive
15.84
Positive
15.59
Positive
Market Momentum
0.49
Negative
73.11
Negative
96.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCS, the sentiment is Positive. The current price of 18.93 is above the 20-day moving average (MA) of 16.67, above the 50-day MA of 16.25, and above the 200-day MA of 15.59, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 73.11 is Negative, neither overbought nor oversold. The STOCH value of 96.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.06B | 56.84 | 10.67% | ― | 9.30% | 67.19% | |
61 Neutral | $3.43B | 19.44 | 25.84% | 1.45% | 9.70% | -31.62% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $569.38M | 20.03 | 2.82% | 1.97% | 6.28% | ― | |
52 Neutral | $230.57M | -2.36 | -19.80% | ― | -2.85% | 75.96% | |
50 Neutral | $322.49M | -1.88 | 9.18% | ― | -7.38% | -483.59% | |
45 Neutral | $780.95M | -1.27 | 35.45% | ― | 9.74% | 12.29% |
* Communication Services Sector Average
MCS
Marcus
18.93
2.80
17.36%
AMCX
AMC Networks
7.55
1.41
22.96%
CNK
Cinemark Holdings
29.72
3.22
12.15%
IMAX
IMAX
38.20
14.76
62.97%
AMC
AMC Entertainment
1.34
-1.55
-53.63%
STRZ
Starz Entertainment Corp
13.74
3.31
31.74%
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.