Company Overview
The Marcus Corporation (NYSE:MCS) ("MCS, "Marcus" or the "Company") operates and owns movie theatres and hotels. Marcus is the fourth largest theatre circuit in the United States operating 91 movie theatres with 1,104 screens in 17 states. The theatre operation also includes a 6-screen theatre owned by a third party, an entertainment center (Funset Boulevard), and the Ronnie's Plaza retail outlet in St. Louis, Missouri. In the Hotel segment, Marcus operates eight owned or majority owned luxury hotels with 2,598 rooms in four states. Marcus also manages 12 additional hotels for third parties representing an additional 2,602 rooms. In total, Marcus operates 5,200 rooms, 200 meeting and event rooms, 40 restaurants and lounges, six luxury spas, two golf courses, a ski hill, an airport, and one escape room. Marcus was founded in 1935 and has 10,500 employees.
Theatres (67% of 2019 revenue): Marcus operates 91 movie theatres with 1,104 screens in 17 U.S. states. The theatre locations are mostly based in the Midwest with Wisconsin and Minnesota representing 40% of locations. The Theatre segment generates revenue through tickets (box office), concessions, and other revenues. Box office revenues in 2019 were $284 million and vary depending on the slate of movies shown in any given year. Concession revenues include the sale of popcorn, candy, soda, and higher priced items through the Company's owned signature cocktail and dining concepts. Concession revenues in 2019 were $231 million. Other revenues were $40 million in 2019 which included management fees, pre-show advertising income, family entertainment center revenue, surcharge revenues, rental income, and gift card breakage income. The costs of running a theatre include film exhibition costs, labor, rent, and other overhead costs. Film exhibition costs is ticket revenue shared with the studios. These range from 50-55% for the average movie and upwards to 65% for iconic movies. Labor, the second largest cost, has become more intensive due to investments in signature cocktail and dining concepts as these require significantly more labor than traditional foods such as
