United Parks & Resorts Inc. (PRKS): A Bull Case Theory 

We came across a bullish thesis on United Parks & Resorts Inc. on Open Insights’s Substack. In this article, we will summarize the bulls’ thesis on PRKS. United Parks & Resorts Inc.’s share was trading at $37.49 as of January 13th. PRKS’s trailing and forward P/E were 11.33 and 7.35, respectively according to Yahoo Finance.

United Parks & Resorts Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. It operates and licenses SeaWorld theme parks in Orlando, Florida; San Antonio, Texas and internationally. PRKS has faced a challenging year, with its stock down roughly 40% YTD, largely due to a softer summer season rather than fundamental business issues. Park attendance, the key driver of admission revenue and in-park spending, was impacted by the opening of Universal Studios’ Epic Universe and weaker consumer spending among its lower-income demographic.

While attendance declined slightly, visitors who did come spent more, partially offsetting the revenue hit. However, management’s discounting of tickets has mitigated this positive trend, resulting in a 10.2% decline in adjusted EBITDA over the trailing twelve months, from $700 million to $630 million. Despite this, free cash flow has remained resilient around $400 million, supported by a reduction in capital expenditures. Even under a flat holiday season, PRKS could generate similar FCF for a $2 billion market cap company, highlighting strong underlying cash generation and the potential for continued share repurchases.

A significant upside catalyst lies in the company’s real estate holdings, which include over 2,000 acres of prime land, including 400 acres adjacent to existing parks. Management has been slow to monetize this asset, but activist investor Hill Path, which owns roughly 49% of the company, may push for a strategic outcome, including a potential buyout.

This scenario could unlock substantial value for shareholders, as Hill Path could develop the land privately while minority investors may capture part of the upside before such a move. At current valuations, PRKS presents a compelling opportunity for investors to gain exposure to resilient cash flows and significant embedded real estate value, with multiple catalysts that could materially re-rate the stock.

Previously, we covered a bullish thesis on The Walt Disney Company (DIS) by Johnson Equity Analysis in May 2025, which highlighted the company’s strong market position, profitable streaming momentum, and robust parks growth. DIS’s stock price has appreciated by approximately 2.97% since our coverage. Open Insights shares a similar perspective but emphasizes PRKS’s cash flow resilience, park attendance, and valuable real estate.

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Disclosure: None.