Marcus (MCS) Stock Forecast & Price Target

Marcus Corp demonstrates a strong financial outlook, driven by its robust performance across both business segments, with projected EBITDA increasing to $112.3 million and revenue growth reaching $791 million by 2026. The theaters segment particularly benefited from a compelling film slate, leading to a 7% year-over-year increase in attendance and a nearly 14% rise in concession revenue. Notably, the Hotels and Resorts segment is expected to achieve normalized growth of approximately 3% to 4% in the upcoming quarters, reinforcing the company's overall positive trajectory in revenue performance.

Marcus Corp's admissions revenues have decreased by 16.6%, outpacing the estimated industry box office decline of 12%, signaling a negative trend within its primary revenue-generating segment of movie theatres. Additionally, total EBITDA came in at $40.4 million, which, while marginally above estimates, reflects a significant drop year-over-year due to weaker box office performance. The forecasted flat hotel profitability through FY26, combined with a cautious outlook on fiscal performance and a lowered valuation multiple, further contributes to concerns surrounding the company's financial health.