The Marcus Corporation Reports Revenue Increase to $735.6 Million for Fiscal 2024

The Marcus Corporation reported a modest increase in total revenues for fiscal 2024, reaching $735.6 million, up from $729.6 million in the previous year. This growth was primarily driven by the hotel division, which saw revenues rise by 6.2% to $287.5 million, while the theatre division experienced a decline in revenues, falling to $447.7 million from $458.4 million. The overall operating income for the company, however, decreased significantly by 52.3% to $16.2 million, largely due to increased operating losses in the theatre segment and higher corporate expenses, including impairment charges of approximately $6.8 million related to several theatres.

In terms of strategic developments, the company has continued to enhance its theatre offerings, investing approximately $79.2 million in capital expenditures during fiscal 2024, a significant increase from $38.8 million in fiscal 2023. This investment included the addition of DreamLounger recliner seating in more theatres and the introduction of new food and beverage concepts. The company also launched the Marcus Movie Club subscription program, aimed at increasing customer engagement and frequency of visits. As of December 26, 2024, the company operated 79 theatres with a total of 995 screens across 17 states, maintaining its position as the fourth largest theatre circuit in the U.S.

Operationally, the theatre division faced challenges with attendance, which decreased by 3.7% compared to the previous year, attributed to a weaker film slate in the first half of fiscal 2024 due to production disruptions from labor strikes. The top 15 films accounted for 54% of total admission revenues, indicating a reliance on blockbuster films. In contrast, the hotel division benefited from increased occupancy rates and average daily rates, bolstered by events such as the Republican National Convention held in Milwaukee, which contributed approximately $3.3 million to group room revenue.

The company reported a net loss attributable to The Marcus Corporation of $7.8 million for fiscal 2024, compared to a net income of $14.8 million in fiscal 2023. This decline was influenced by decreased operating income, increased equity losses from joint ventures, and significant debt conversion expenses related to the repurchase of convertible senior notes. The company’s total assets decreased to $1.04 billion from $1.07 billion, while total liabilities also saw a reduction, resulting in a debt-to-capitalization ratio of 0.26 as of December 26, 2024.

Looking ahead, The Marcus Corporation anticipates continued investment in both its theatre and hotel segments, with estimated capital expenditures for fiscal 2025 projected between $70 million and $85 million. The company aims to enhance its operational efficiency and customer experience while exploring potential acquisitions and management contracts to drive growth. The outlook remains cautious, with expectations of improved film availability and continued focus on maximizing the performance of existing assets.