B. Riley has adjusted its price target for Marcus (MCS, Financial), lowering it from $26 to $24, while maintaining a Buy rating after shifting coverage responsibilities. The firm holds a positive outlook on the cinema exhibition sector, emphasizing the upcoming robust slate of Hollywood films slated for 2025 and 2026, which should drive box office recovery and benefit key players in the industry.
B. Riley notes minimal tariff threats and highlights the resilience of movie-going habits even during economic downturns as supportive factors for the sector. Despite Marcus (MCS, Financial) not being the firm’s top choice—IMAX holds that position—it remains a favored option in the firm’s selection. This positive sentiment is rooted in the strategic alignment with industry trends and a projected recovery in cinema attendance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Marcus Corp (MCS, Financial) is $25.67 with a high estimate of $27.00 and a low estimate of $25.00. The average target implies an upside of 48.79% from the current price of $17.25. More detailed estimate data can be found on the Marcus Corp (MCS) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Marcus Corp's (MCS, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Marcus Corp (MCS, Financial) in one year is $19.73, suggesting a upside of 14.38% from the current price of $17.25. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Marcus Corp (MCS) Summary page.
MCS Key Business Developments
Release Date: May 06, 2025
- Consolidated Revenue: $148.8 million, increased by $10.2 million or 7.4% compared to the prior year quarter.
- Operating Loss: $20.4 million, a decline of $3.7 million compared to the prior year quarter.
- Consolidated Adjusted EBITDA: Loss of $300,000, a decrease of $2.6 million over the first quarter of fiscal 2024.
- Theater Division Revenue: $87.4 million, increased 7.5% compared to the prior year first quarter.
- Comparable Theater Admission Revenue: Increased 1.3% compared to fiscal first quarter 2024.
- Comparable Theater Attendance: Increased 6.9% compared to fiscal first quarter 2024.
- Average Admission Price: Decreased 5.1% during the first quarter of fiscal 2025.
- Average Concession Food and Beverage Revenues Per Person: Increased by 0.8% during the first quarter of fiscal 2025.
- Theater Division Adjusted EBITDA: $3.7 million compared to $6.2 million in the prior year quarter.
- Hotels and Resorts Division Revenue: $61.3 million, an increase of 7.2% compared to the prior year.
- RevPAR for Comparable Owned Hotels: Grew 1.1% during the first quarter compared to the prior year.
- Average Daily Rate (ADR): Increased 8% during the first quarter.
- Hotels Adjusted EBITDA: Increased $1 million in the first quarter of fiscal 2025 compared to the prior year quarter.
- Cash Flow from Operations: Use of cash of $35.3 million in the first quarter of fiscal 2025.
- Total Capital Expenditures: $23 million during the first quarter of fiscal 2025.
- Share Repurchases: Approximately 424,000 shares repurchased for $7.1 million in cash.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Marcus Corp (MCS, Financial) reported a 7.4% increase in consolidated revenues for the first quarter of fiscal 2025, reaching $148.8 million.
- The theater division saw a 7.5% increase in total revenue compared to the prior year, aided by four additional operating days.
- Hotels and resorts division revenues increased by 7.2%, with RevPAR growth driven by an 8% increase in average daily rate.
- The company completed significant renovations at the Hilton Milwaukee, which are expected to enhance competitiveness and attract more group business.
- Marcus Corp (MCS) repurchased approximately 424,000 shares of its common stock, demonstrating confidence in its business and commitment to returning capital to shareholders.
Negative Points
- The theater division's box office performance trailed the industry by approximately 1.8 percentage points, attributed to pricing strategy differences.
- The first quarter operating loss was $20.4 million, negatively impacted by increased depreciation and stock-based compensation expenses.
- Consolidated adjusted EBITDA for the first quarter was a loss of $300,000, a decrease from the previous year.
- Higher labor costs were incurred due to a return to more traditional operating hours and staffing levels in anticipation of an improved film slate.
- The Hilton Milwaukee renovation negatively impacted occupancy and RevPAR growth, with an estimated 4 percentage point reduction in RevPAR growth.
