Executive Summary

Q1 2025 was seasonally weak and impacted by a fiscal calendar shift (+4 operating days), delivering total revenues of $148.8M (+7.4% YoY) but a wider operating loss of $20.4M and net loss of $16.8M (−$0.54 EPS) as higher film costs and normalized labor hours weighed on theatres, while hotels posted modest RevPAR growth (+1.1%) despite renovation disruption .
Theatres: attendance rose (+6.9% same-store), but average ticket price fell (−5.1%) given value promotions and family mix; film cost ratio rose ~240 bps on holiday carryover; theatre Adj. EBITDA fell to $3.7M vs $6.2M LY .
Hotels: RevPAR +1.1% with ADR +8% and occupancy −3.4ppts; renovation at Hilton Milwaukee compressed growth by ~4ppts; hotels delivered $1.0M Adj. EBITDA vs breakeven LY .
Versus S&P Global consensus, EPS was roughly in line (−$0.54 actual vs −$0.52* est), but revenue ex cost reimbursements missed ($138.9M actual vs $140.1M* est) and EBITDA missed (−$4.4M* actual vs −$1.35M* est) as film cost/labor deleverage offset attendance gains (Values retrieved from S&P Global) .
Near-term catalysts: strong April/early Q2 box office (Minecraft, Sinners, Thunderbolts) and premium format expansion (ScreenX) plus seasonal hotel upswing; capex plan ($70–$85M FY25) focuses on Hilton Milwaukee completion and theatre enhancements .

What Went Well and What Went Wrong

What Went Well

Attendance momentum: same-store attendance +6.9% despite softer slate; promotions ($7 Everyday Matinee, Value Tuesday) and family content supported traffic .
Hotels resilience: RevPAR +1.1% with ADR +8%; Grand Geneva ski season strength and group bookings offset renovation displacement; hotels Adj. EBITDA improved to $1.0M from breakeven LY .
Strategic investments and capital return: three new ScreenX auditoriums launched; $7.1M repurchases (424k shares) in Q1; management reiterates balanced allocation and strong liquidity ($192M) .

What Went Wrong

Theatre margin pressure: film cost ratio up ~240 bps (holiday carryover concentration) and normalized staffing (+7% operating hours YoY) reduced labour efficiency, cutting theatre Adj. EBITDA to $3.7M (vs $6.2M LY) .
Pricing mix headwinds: average ticket price −5.1% given value promotions and heavier child/family mix; concessions per-person mixed (press: +2.9%; comparable-theatre F&B per-cap: +0.8%) .
Hotels underperformed competitive set due to renovation: RevPAR growth lagged comps by ~5.6ppts, with Hilton Milwaukee displacement estimated at ~4ppts drag on portfolio RevPAR growth .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenues ($M)	232.7	188.3	148.8
Operating Income (Loss) ($M)	32.8	(2.2)	(20.4)
Diluted EPS ($)	0.73	0.03	(0.54)
Adjusted EBITDA ($M)	52.3	25.9	(0.3)

Segment breakdown

Metric	Q3 2024	Q4 2024	Q1 2025
Theatres Revenues ($M)	143.8	121.2	87.4
Theatres Adjusted EBITDA ($M)	33.2	23.7	3.7
Hotels/Resorts Revenues ($M)	88.7	67.1	61.3
Hotels/Resorts Adjusted EBITDA ($M)	23.1	7.1	1.0

KPI highlights (Q1 2025)

KPI	Q1 2025
Same-store attendance YoY	+6.9%
Avg ticket price YoY	−5.1%
Concessions per person YoY	+2.9% (press) ; +0.8% at comparable theatres (F&B per-cap, call)
Film cost % of admissions	~+240 bps YoY
Operating hours YoY	+7% (comparable days)
Hotels RevPAR YoY	+1.1%
Hotels ADR YoY	+8%
Hotels occupancy YoY	−3.4 ppts
Renovation impact	~−4 ppts to RevPAR growth
Q1 Buybacks	424k shares; $7.1M
Liquidity / leverage	~$192M liquidity; 31% debt-to-cap; net leverage 2x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Capex	FY 2025	$70–$85M (as of Q4 call)	$70–$85M (reiterated)	Maintained
Capex mix	FY 2025	Hotels $50–$60M; Theatres $20–$25M	Reiterated	Maintained
Normalized Capex run-rate	Post-2025	~$50–$55M/yr	Unchanged	Maintained
Hilton Milwaukee renovation	2025	Rooms substantial completion H1’25; ballrooms early fall ’25	Rooms on track by 6/30; ballrooms into summer/fall	Maintained
Dividend	Ongoing	N/A	$0.07 per share declared for 6/16/25	Announced
Capital returns	Ongoing	$19M returned in FY24 (dividends+buybacks)	$7.1M buybacks in Q1; continue opportunistic repurchases	Ongoing

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Pricing strategy vs attendance	Value Tuesday/popcorn promo; $7 Matinee; attendance outperformed industry	Emphasis on attendance; moderated base price hikes; Movie Club launched	Attendance focus continued; ATP down on promos/family mix	Consistent focus on traffic over price
Film slate outlook	Strong slate drove record quarter; 2025 stacked	2025–2026 slates strong	April/early Q2 beat expectations; strong summer ahead	Improving momentum
Concessions/digital	Per-cap +7.9% Q3; merchandise tubs help	Digital ordering seen boosting basket size	Digital to reduce lines/increase per-caps; early days	Building digital capability
Theatrical cost structure	Film cost +~200 bps Q3	Film cost elevated on concentrated slate; margins improved on scale	Film cost +~240 bps; labor hours normalized; efficiency to improve	Cost headwinds easing with volume
Hotels group/leisure mix	RNC drove ADR; group mix rising	Record year; group bookings above pre-COVID; low-mid single digit RevPAR growth outlook	Group stable; ADR +8%; renovation drag on occupancy; 2026 group pace +20% YoY	Healthy group pipeline
Capex/renovations	Pfister/Grand Geneva progress	FY25 capex $70–$85M; Hilton renovation underway	FY25 capex reiterated; Hilton rooms ~65% complete, target 6/30	Executing to plan
Premium formats	PLF mix aided ATP	—	Three new ScreenX rooms opened	Expanding premium offering

Management Commentary

“While the first quarter box office was softer than expected, April got off to a strong start… We expect this excitement will continue throughout the remainder of the year.” — CEO Gregory S. Marcus .
“Our top 10 films… more concentrated… resulted in an approximately 2.4 percentage point increase in overall film cost as a percentage of admission revenues.” — CFO Chad Paris .
“Our average fiscal 2025 first quarter occupancy rate… was 50.3%. … We estimate that the [Hilton] renovation negatively impacted our RevPAR growth by nearly 4 percentage points.” — CFO Chad Paris .
“We repurchased approximately 424,000 shares… for $7.1 million in cash… Over the last four quarters, we’ve returned over $25 million… through share repurchases and dividends.” — Management .
“We recently completed the conversion of 3 new ScreenX auditoriums… and enjoyed large crowds and strong customer demand.” — CEO Gregory S. Marcus .

Q&A Highlights

Concessions per-cap: near flat to modestly up; call cited +0.8% (pricing-driven) with stable incidence and basket size; management remains thoughtful on further pricing in a softening macro .
Hotel renovation pricing power: Hilton Milwaukee renovation expected to win group business and support rate; positioned as first-choice, convention-connected asset post-renovation .
Subscription Movie Club: early days with minimal impact; positive uptake, complements strong Tuesday program .
Q2 durability: breadth of titles and positive surprises (e.g., Sinners) underpin confidence in continued momentum .
Labour efficiency: operating hours normalized vs strike-impacted prior year; ~+7% hours YoY; opportunity to tighten reaction time when openings underperform .

Estimates Context

Metric (Q1 2025)	S&P Global Consensus	Actual	Comment
Primary EPS (diluted)	−$0.52*	−$0.54	Slightly below (Values retrieved from S&P Global)
Revenue (ex cost reimbursements)	$140.05M*	$138.91M	Slight miss (Values retrieved from S&P Global)
EBITDA	−$1.35M*	−$4.40M*	Miss; S&P EBITDA vs company Adj. EBITDA of −$0.26M (Values retrieved from S&P Global)

Note: Company reports “Total revenues” of $148.77M including $9.86M cost reimbursements; S&P revenue consensus aligns to revenue ex reimbursements of $138.91M .

Key Takeaways for Investors

Attendance strategy is working: same-store attendance +6.9% with promotions widening funnel; ticket mix and value offers compressed ATP, but management prioritizes long-term habit formation and ancillary monetization .
Near-term theatre catalysts are favorable: April/early Q2 outperformed expectations (Minecraft/Sinners/Thunderbolts) and premium formats (ScreenX) add mix tailwinds into a robust summer slate .
Short-term margin headwinds should abate with volume: film cost mix and normalized staffing drove deleverage in Q1, but management expects better labor efficiency and stronger slate to improve theatre profitability through Q2/Q3 .
Hotels remain steady with upside as renovations complete: ADR strength and group pace (2026 +20% YoY) offset renovation drag; Hilton Milwaukee completion by mid-year should unlock better mix and rate .
Capex and capital returns are balanced: FY25 capex $70–$85M focused on high-ROI projects; $7.1M Q1 buybacks and ongoing dividend support TSR .
Estimate resets likely skew to margin/EBITDA: results were roughly in line on EPS and slightly light on revenue ex reimbursements, but below on EBITDA given film cost/labor; upward revisions could follow if Q2 box office momentum sustains (Values retrieved from S&P Global) .
Fiscal calendar change adds noise to YoY comps; Q1 benefited by +4 days (including 5 holiday-week days vs 3 LY), with less impact in future quarters, aiding cleaner trend analysis from Q2 onward .

Additional Supporting Details

Consolidated Q1 2025 financials: revenues $148.8M; operating loss $(20.4)M; net loss $(16.8)M; diluted EPS $(0.54); Adj. EBITDA $(0.3)M; cash used in ops $(35.3)M; capex $23.0M .
Segment Q1 2025: Theatres revenue $87.4M; operating loss $(6.3)M; Adj. EBITDA $3.7M. Hotels revenue before reimbursements $52.3M; operating loss $(6.0)M; Adj. EBITDA $1.0M .
Dividend declared: $0.07 per common share payable June 16, 2025 (record date May 27, 2025) .
Liquidity and leverage: ~$192M total liquidity; 31% debt-to-capitalization; net leverage 2x (end of Q1) .

Footnote on estimates: *Values retrieved from S&P Global.

MARCUS CORP (MCS)·Q1 2025 Earnings Summary