Benchmark raises Marcus Corp. stock estimates on box office strength

Benchmark raises Marcus Corp. stock estimates on box office strength

Gold slides as U.S.-Iran conflict lifts oil, hawkish Fed bets grow Investing.com - Benchmark reiterated a Buy rating and $22.00 price target on Marcus Corp. (NYSE:MCS) stock Monday, raising second-quarter fiscal 2026 estimates following stronger-than-expected industry box office performance. The stock currently trades at $21.77, near the analyst target, and InvestingPro data indicates the company is undervalued with a Fair Value of $23.16. Shares have surged 41% year-to-date, reflecting growing investor confidence in the theatre and hotel operator’s recovery trajectory.

The firm now forecasts revenue of $216.5 million for the second quarter, above consensus estimates of $209.4 million, and adjusted EBITDA of $35.75 million, modestly below consensus of $36.3 million. Domestic box office increased 11.2% year-over-year to $2.934 billion during the period. Family and horror films represented several of the quarter’s strongest releases and have historically indexed well across the Marcus theatre circuit, creating potential for company attendance growth to exceed the broader market.

Marcus demonstrated this pattern in the first quarter, when its theatre admission revenue outperformed the domestic box office. According to InvestingPro Tips, the company is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of just 0.22. Investors can access 7 additional ProTips and comprehensive Pro Research Reports covering Marcus and 1,400+ other US equities.

The hotel business should benefit from an easier comparison, as the prior-year quarter was affected by the Hilton Milwaukee renovation, while the property is now fully operational. Benchmark remains cautious on third-quarter box office growth. In other recent news, Marcus Corporation reported its first-quarter 2026 financial results, exceeding analyst expectations.

The company achieved an earnings per share (EPS) of -$0.51, better than the forecasted -$0.52. Revenue also surpassed projections, reaching $154.4 million compared to the anticipated $150.52 million. In addition, Marcus Corporation declared a regular quarterly cash dividend of $0.08 per share, payable on June 15, 2026, to shareholders of record as of June 1, 2026.

Meanwhile, Marcus Theatres, a division of Marcus Corporation, promoted Rob Novak to executive vice president of operations and food and beverage. Novak has been with the company for nearly 29 years, advancing through various roles before this latest promotion. Furthermore, Marcus Corporation announced that Chief Information Officer Kim M. Lueck will retire on August 1, 2026, after nearly 30 years with the company.