The Marcus Corporation Q4 FY2025 earnings call

Key points include testing QR code ordering for faster transactions, rolling out new payment terminals in theaters, various moviegoing incentive programs (Marcus Passports, Marcus Mystery Movie, Marcus Movie Club), hotel renovations such as the Hilton Milwaukee, opening a new short golf course at the Grand Geneva, and focus on driving per caps and memberships in both theater and hotel segments.

Theater: QR code ordering tested with encouraging F&B per caps at some locations, various moviegoing incentive programs like Marcus Movie Club (with 6.9 million members) driving repeat business. Hotel: Delivered record revenue and adjusted EBITDA in fiscal 2025 despite the impact of a major hotel renovation, with upper upscale properties performing well, and plans to open a new short golf course at the Grand Geneva.

Hotel outlook for 2026 is positive with expectations of low single-digit rev park growth led by group business, steady leisure and business travel. Theater sees strong 2026 and 2027 film slates with potential for higher attendance, focusing on maximizing top and bottom line through various programs and leveraging film slates.

Challenges include lease issues in theater M&A, mixed demand environment in hotels affecting occupancy, and sensitivity of customers to price changes in theaters. Also, slow M&A markets due to elevated cap rates impacting hotel and theater transactions.

Q: Discuss 2026 cadence and pricing strategy, A: Year-over-year benefit from 2025 price changes, focus on driving F&B per caps; Q: Booking shift between leisure and group in hotels, A: Group pace mixed, leisure demand strong in fourth quarter, upper upscale properties performing well; Q: Theater growth potential vs 2025, A: 2026 slate looks good but uncertain, focus on movie club and PLF footprint; Q: M&A activity, A: Slow hotel and theater M&A markets due to cap rates, looking at opportunities in adjacencies; Q: Occupancy rate decline, A: Election-related tailwind last year, market-specific softness but assets outperforming; Q: Capital allocation and M&A underwriting, A: Theater M&A challenges with leases, new builds tough due to supply, concessions per cap trends.