The Marcus Corporation Q1 FY2026 earnings call

Chad shared first quarter consolidated results, theater division had revenue growth overcoming fewer operating days headwind, hotel division benefited from renovated assets; Greg mentioned theater division stronger film slate, completed rollout of tap-to-pay terminals and mobile food and beverage ordering, plans to roll out dining digital purchase experience; hotel division discussed investments in renovated hotels, occupancy growth, but seasonal challenges and economic uncertainty in travel costs.

Theater Division: First quarter 2026 total revenue of $92.9 million increased $5.6 million or 6.4% compared to the prior year first quarter. The five fewer operating days negatively impacted theaters revenue growth by $12.2 million. On a comparable calendar quarter basis, excluding this impact, theaters revenues increased $17.8 million or 23.6%. Comparable theater admission revenue increased 9.8% and comparable theater attendance increased 1.9% in fiscal first quarter 2026 compared to fiscal first quarter 2025. Theater Division adjusted EBITDA during the first quarter of 2026 was $8 million, an increase of $4.3 million. Hotels and Resorts Division: Revenues were $61.4 million for the first quarter of 2026, up $100,000 compared to the prior year. The five fewer operating days negatively impacted hotels revenue growth by approximately $3.1 million. On a comparable calendar quarter basis, excluding this impact, hotels revenue before cost reimbursements increased $2.5 million or 5.1%. REVPAR for comparable owned hotels grew 13.7% during the first quarter. Hotels adjusted EBITDA decreased $1.3 million in the first quarter of 2026 compared to the prior year quarter.

Expect capital expenditures for 2026 of 50 to 55 million, significant increase in free cash flow; optimistic about theater film slate and per capita sales growth; prepared to react to potential soft demand in hotel business due to economic uncertainty.

Fewer operating days negatively impacted revenue and adjusted EBITDA; seasonal challenges in hotel business with potential winter losses; economic uncertainty affecting travel costs and hotel demand; lease risks as many leases negotiated pre-pandemic not matching current business performance.

Q: Drew asked about concessions initiatives' receptivity and Chad's thoughts on 2% cap rate.

A: QR codes well accepted, digital selling helps upsell, 2 - 3% concessions per cap possible.

Q: Mike Hickey asked on windows and seating.

A: Greg talked about windowing trend benefiting theater, seating innovations on margins, Disney's PLF certification discussed.

Q: Eric Wald asked on hotel renovation rates and share purchases.

A: Hotel renovation leads to 10 - 15% rate uplift, balanced approach on share purchases.

Q: Patrick Shaw asked on theater footprint and film slate impact.

A: Ongoing portfolio management, film slate mix impacts concessions per cap.