Marcus Corp.'s shares fall on weak 1Q
MILWAUKEE (AP) — Marcus Corp.'s shares fell in trading Thursday after the Milwaukee-based hotel and movie theater operator said that its fiscal first-quarter profit fell 14 percent due to the absence of a key holiday weekend.
The company owns 56 theaters across the Midwest and owns or manages 19 hotels and resorts.
Marcus earned $10.7 million, or 37 cents per share, for the quarter that ended Aug. 30. That's down from $12.5 million, or 42 cents per share, earned in the first quarter last year. Its revenue fell nearly 5 percent to $117.9 million from $123.9 million last year.
The company had a busy Memorial Day weekend in last year's quarter, which boosted revenue at its theaters, but the holiday did not fall in this year's quarter.
Marcus said that its theater business also struggled during the quarter due to a weaker slate of films and competition from the Olympics. This compares to last year, which benefited from the release of a Harry Potter movie.
Its hotel business improved, however, with a nearly 4 percent increase in revenue per available room, a closely watched industry indicator. The company recently announced plans to buy a hotel and office plaza in downtown Lincoln, Neb., through a joint venture.
Shares of Marcus fell 96 cents, or 7.9 percent, to $11.15 in late afternoon trading. Its stock has traded between $9.19 and $14.37 in the past 52 weeks.