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The Marcus Corporation (MCS), Regal Entertainment Group (RGC), Marriott International Inc (MAR): Movie Theaters and Hotels for an Uncertain Future

Book Value

Marcus also wins the book value comparison with Regal Entertainment Group (NYSE:RGC) and Marriott International Inc (NYSE:MAR). Only one of these companies has a positive book value right now. Marcus has a book value per share of $11.19, and its share price was $12.51 at the end of the day on June 25, 2013. Regal Entertainment Group (NYSE:RGC) has a book value per share of -$4.55, and Marriott has a book value per share of -$4.45.

Latest Results

The Marcus Corporation (NYSE:MCS) posted a net loss this quarter because of items, but the company still achieved top-line growth because its hotel business performed well. Marcus reported 1.7% overall revenue growth for the third fiscal quarter of 2013, and its hotel segment reported 12.3% revenue growth. The company recorded a -$2 million impact because of a lawsuit and impairment costs, which resulted in -$1.37 million net income for the quarter.

Marriott International Inc (NYSE:MAR)’s results show that the hotel industry has recovered from the recession, and conditions look more favorable now. This hotel chain reported 14.9% higher sales and 30.8% higher income for the quarter. Marcus does business in 11 states while Marriott has hotels throughout the world, so Marriott’s North American results could provide a closer comparison. Marriott International Inc (NYSE:MAR) reported 5.8% higher REVPAR for the quarter, while Marcus reported 10.7% higher REVPAR.

The Marcus Corporation (NYSE:MCS) explained that its movie segment faced a tough comparison this quarter because it had more popular movies available last year. Movie theaters may have also faced a difficult market this spring in general. Regal Entertainment Group (NYSE:RGCreported -6.1% revenue growth and -51.4% income growth for the quarter, and the theater chain described the overall business environment as challenging.

Takeaway

Marcus’ combination of movie theaters and hotel properties could perform in a wide variety of economic conditions, which is very important for a dividend stock. The Marcus Corporation (NYSE:MCS)’s third quarter didn’t go so well, but a few hit movies could put this company in a much better position. This theater and hotel owner also classified some major recent expenses as items, so its margins could improve. A weak third quarter may mean a good deal on this stock.

The article Movie Theaters and Hotels for an Uncertain Future originally appeared on Fool.com.

Eric Novinson has no position in any stocks mentioned. 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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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