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

The Marcus Corporation (NYSE:MCS) also blamed its film selection for its theaters’ weak fourth quarter results, but Regal and Carmike Cinemas, Inc. (NASDAQ:CKEC) still achieved higher sales with the films available last quarter.

The investment case for The Marcus Corporation (NYSE:MCS) still remains valid, though. Carmike Cinemas, Inc. (NASDAQ:CKEC) also announced that its third quarter 2013 results have been good so far, which suggests that Marcus could post better results for its 2014 first fiscal quarter. In the meantime, The Marcus Corporation (NYSE:MCS) has a 2.6% dividend, and this movie theater still wins the price to book comparison. Marcus’ 1.12 P/B ratio is less than Carmike’s 2.16 P/B ratio and Cinemark’s 2.99 P/B ratio.

International Theaters

Cinemark Holdings, Inc. (NYSE:CNK) offers a dividend along with international exposure. This movie theater chain owns theaters in multiple Central American and South American countries. Cinemark Holdings, Inc. (NYSE:CNK) has made a major investment in Latin America’s growth markets that could offer a big payoff. MPAA figures show that Latin America box office revenue grew 86% between 2007 and 2011. Cinemark Holdings, Inc. (NYSE:CNK) owns a total of 467 theaters, and 169 of its theaters are outside of the United States.

Cinemark Holdings, Inc. (NYSE:CNK) reports second quarter results on August 6, 2013. After Regal and Carmike’s reports, Cinemark’s prospects in the United States also look promising. This movie theater chain also offers a 2.9% dividend yield.

Takeaway

Overall conditions for movie theaters look good right now, and the theaters appear confident that they can deliver in upcoming quarters. Each theater has a different attraction for investors, though. Regal Entertainment Group (NYSE:RGC) pays out the biggest dividend. Cinemark Holdings, Inc. (NYSE:CNK) offers access to Latin America. Carmike provides a turnaround play. Marcus offers value and diversification. Personally, I selected Marcus, but all of these movie theater stocks show promise right now.

Eric Novinson owns shares of The Marcus Corporation. The Motley Fool has no position in any of the stocks mentioned. Eric is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The Real Attraction of Movie Theaters originally appeared on Fool.com is written by Eric Novinson.

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