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Regal Entertainment Group (RGC), Cinemark Holdings, Inc. (CNK): The Real Attraction of Movie Theaters

When movie theater visitors buy tickets, theater stockholders can receive rewards. Movie theater chains More results Regal Entertainment Group (NYSE:RGC), Cinemark Holdings, Inc. (NYSE:CNK), and The Marcus Corporation (NYSE:MCS) all pay out dividends. Recent results suggest that business has picked up, which could make movie theater stocks more appealing dividend picks.

Cinemark Holdings, Inc. (NYSE:CNK)

The Top Dog

Regal Entertainment Group (NYSE:RGC) shows lots of movies. This company boasts that it’s the largest theater chain in the United States, and its 577 movie theaters could provide economies of scale advantages. Regal Entertainment Group (NYSE:RGC) reported good top-line results for the second quarter, with total revenue rising 16.5%. This theater chain also reported an impressive 34.2% increase in operating income.

Regal Entertainment Group (NYSE:RGC) reported a slight decrease in income for the second quarter, but this theater chain incurred an expense that may have helped address one of its main weaknesses. This theater chain offers the highest dividend yield in the group at 4.4%, but it has a book value of -$4.52 per share. Regal Entertainment Group (NYSE:RGC) reported a $30.7 million loss on debt extinguishment this quarter, a major expense for a company that had $36.1 million in net income. Even with its net income falling 3% for the quarter, this movie theater chain could be in better financial shape now.

The Turnaround Stock

Carmike Cinemas, Inc. (NASDAQ:CKEC) has continued its recovery in 2013. As Bloomberg’s Tara Lachapelle explained, in 2012 Carmike Cinemas, Inc. (NASDAQ:CKEC) was a theater chain that had lost money for six years in a row. This theater chain has become profitable again, and it plans to expand. Carmike currently owns 245 theaters, and it wants to grow to 300 theaters. This theater chain did stop paying dividends in 2008, and it hasn’t announced any plans to bring the dividend back, so its peers look better on this metric.

Carmike Cinemas, Inc. (NASDAQ:CKEC)’s second quarter results definitely show improvement. This movie theater chain reported 25.8% revenue growth and 45.3% operating income growth for the second quarter. Carmike Cinemas, Inc. (NASDAQ:CKEC) CEO David Passman also provided another statistic that illustrates how all of these theater chains compare to their peers. According to Passman, overall United States movie theater admissions revenue rose 7.8% for the quarter.

Theaters and Hotels

The Marcus Corporation (NYSE:MCS)’ fiscal fourth quarter last year included an additional week. Even considering the timing factor, the company’s 55 movie theaters didn’t do very well this quarter. The Marcus Corporation (NYSE:MCS)’ theater admissions revenue dipped 13.7%, and theater concessions revenue dipped 8.4%. The company did report flat revenue growth from its hotel rooms, an improvement because of the timing factor.

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