Marcus (NYSE:MCS) Releases Earnings Results, Meets Estimates

Marcus (NYSE:MCS) issued its earnings results on Thursday. The company reported $0.60 EPS for the quarter, hitting analysts’ consensus estimates 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 Price Performance

Shares of NYSE MCS traded up $0.29 on Thursday, hitting $28.51. The company’s stock had a trading volume of 149,870 shares, compared to its average volume of 203,675. The stock has a 50 day moving average of $28.07 and a 200-day moving average of $21.84. The company has a market capitalization of $879.02 million, a price-to-earnings ratio of 40.16 and a beta of 0.58. Marcus has a 12-month low of $13.01 and a 12-month high of $32.42. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.44 and a quick ratio of 0.44.

Marcus Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, August 25th were given a dividend of $0.09 per share. The ex-dividend date was Tuesday, August 25th. This is an increase from Marcus’s previous quarterly dividend of $0.08. This represents a $0.36 dividend on an annualized basis and a yield of 1.3%. Marcus’s dividend payout ratio (DPR) is presently 50.70%.

Analyst Ratings Changes

A number of analysts have weighed in on MCS shares. Zacks Research cut Marcus from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 2nd. Wall Street Zen raised Marcus from a “buy” rating to a “strong-buy” rating in a research report on Monday, October 19th. Wedbush upped their price objective on Marcus from $23.00 to $34.00 and gave the stock an “outperform” rating in a research report on Friday, July 31st. B. Riley Financial reiterated a “neutral” rating on shares of Marcus in a report on Monday, October 19th. Finally, Benchmark raised their target price on Marcus from $22.00 to $33.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $32.25.

Insider Buying and Selling at Marcus

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