Marcus NYSE: MCS reported record third-quarter revenue for fiscal 2026, supported by a strong summer film slate and continued leisure travel demand. The company said both its theatre and hotels divisions posted their highest third-quarter revenue on record, while consolidated quarterly revenue reached the highest level in company history.
Consolidated revenue rose 13.1% year over year to $238 million. Operating income increased 33% to $30.3 million, while adjusted EBITDA climbed 21% to $49.1 million. Net earnings were $18.8 million, or $0.60 per share, compared with $13.2 million, or $0.42 per share, in the prior-year quarter, excluding the prior-year impact of a $3 million property-insurance settlement gain.
Theatre results driven by summer blockbusters
The theatre division generated $145 million in third-quarter revenue, up about 21% from a year earlier. Chief Financial Officer and Treasurer Chad Paris said the increase was driven by performances from Spider-Man: Brand New Day and The Odyssey, along with stronger carryover from films released in the second quarter.
Comparable theatre admission revenue increased 21.8%, and comparable attendance rose 16.8%. Average admission price increased 4.3%, reflecting strategic pricing, a higher mix of attendance on premium large-format screens and fewer Value Tuesday visits due to calendar differences, Paris said. Comparable food, beverage and concession revenue per person increased 3.8%, aided by movie-themed merchandise and menu pricing.
Theatre adjusted EBITDA rose more than 46% to $46.3 million, primarily because of higher attendance volumes. Paris noted that the company’s reported admissions growth trailed the 27% increase in U.S. box-office receipts reported by Comscore, though comparisons were affected by films excluded from prior-year Comscore data and Marcus’ decision not to play two films because of distributor terms.
After adjusting for those items, Paris said admissions revenue grew 25.6%, about 1.4 percentage points below national box-office growth. He attributed the remaining difference largely to the regional performance of The Odyssey, which performed more strongly in markets where Marcus does not operate and in premium formats with higher ticket prices.
Chairman, President and Chief Executive Officer Greg Marcus said the company recorded its highest summer attendance since 2019 and set summer records for box office, concessions, food and beverage, merchandise sales and per-capita spending. He said the company benefited from a deeper slate that included 32 wide releases, compared with 30 during the prior-year quarter.
Looking ahead, Marcus said the fourth quarter began with solid domestic box-office growth in October. He highlighted upcoming releases including Avengers: Doomsday and Dune: Part Three, adding that advance ticket sales for Avengers: Doomsday were “incredibly strong.” Paris said October industry box office was up year over year, while the company expects November to be down and December to increase meaningfully.
Hotel revenue reaches a third-quarter record
The hotels and resorts division reported $82 million in revenue before cost reimbursements, up 2% from the prior-year quarter. Revenue per available room, or RevPAR, at owned hotels increased 2.1%, as a 3.3% increase in average daily rate was partly offset by an occupancy decline of just under one percentage point. Average occupancy was 77.5%.
At comparable owned hotels, excluding The Marc Hotel, which opened in early 2026, RevPAR increased 7.4%. Paris said the company outperformed its comparable competitive hotel set by 1.2 percentage points, based on Smith Travel Research data. He cited strong transient demand and modestly improved business travel, partially offset by a softer group-demand environment.
Group business represented about 39% of total business mix, down from 43% a year earlier. Food and beverage revenue declined 1.4% as banquet and catering activity softened. Marcus said Chicago benefited from stronger citywide events and convention demand, while Milwaukee experienced weaker group business and a less favorable citywide event calendar.
Hotel adjusted EBITDA declined by $600,000 year over year. Paris said severe storms at Grand Geneva Resort & Spa on July 3 caused operational disruptions, cancellations, golf-course closures, cleanup costs and lost holiday-weekend revenue. The company expects property insurance to cover damage, but estimated the storm had an approximately $500,000 negative impact on adjusted EBITDA. Excluding the storm, hotel adjusted EBITDA would have been essentially flat, Paris said.
Cash, capital spending and growth priorities
Cash flow from operations totaled $38.4 million, compared with $39.1 million in the prior-year period. Capital expenditures were $10 million in the quarter, primarily for maintenance projects. The company maintained its full-year capital expenditure outlook of $45 million to $50 million.
Marcus ended the quarter with approximately $60 million in cash, more than $219 million in total liquidity, a debt-to-capitalization ratio of 24% and net leverage of 0.8 times. Paris said the balance sheet gives the company flexibility to fund growth investments while maintaining its quarterly dividend.
Management said it remains disciplined in evaluating acquisitions and other investments. Greg Marcus said the company is exploring opportunities to increase returns from its existing theatre footprint, including premium experiences such as ScreenX and a recently launched D-BOX seating test. In hotels, he said the company has begun a planning process to identify potential return-generating investments at Grand Geneva.
For the hotel business, management said group room revenue bookings for the remainder of 2026 were running about 5% below the prior-year pace, while 2027 group room pace was approximately 10% ahead. Banquet and catering pace was in line for the rest of 2026 and about 14% ahead for 2027.
About Marcus (NYSE:MCS)
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.
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