The reopening of commercial powers in the second half (FUNN, CCL, DIS, PLAY, AMC, CNK)
While the rest of the world remains far from “open for business” due to continued struggles with Covid-19 – particularly in the face of concerns over the emerging new Delta variant – the United States and much of the developed world are in great shape as we near the end of the second quarter and first half of the fiscal and calendar year.
The third quarter will be the quarter most strongly marked by the concept of âthe great reopening in the United Statesâ, which is quite appropriate given that it will also begin on July 4th.e vacation. The second quarter has been strong and will undoubtedly represent peak earnings growth across the market on a quarterly year-over-year basis. But this is a consequence of the extreme lockdowns put in place in April and May 2020. Things have been completely closed.
But, if you remember, the economy rebounded on a relative basis in the third quarter of last year, with annualized US GDP growth of 38% in the quarter.
Having said that, things were still gloomy.
This time around, according to the New York Times, the first time the country is likely to be fully reopened, with relaxed social distancing and mask warrants, will be next month. And the first quarter that will reflect a fully reopened economy will be the third quarter.
This has implications for investment strategies. The businesses that could benefit the most from this change in conditions will be those most related to people getting together in public for fun, such as theme parks like Walt Disney Co (NYSE: DIS) and, to a lesser extent , cruise ships like Carnival Corp (NYSE: CCL).
But theme parks and cruise ships aren’t the only big winners from the reopening. Investors should also take a look at a basket of stocks that we could group together as “The Family Fun Plays,” including: Cinemark Holdings, Inc. (NYSE: CNK), Dave & Buster’s Entertainment Inc (NASDAQ: PLAY ), Amfil Technologies Inc (OTCMKTS: FUNN) and AMC Entertainment Holdings Inc (NYSE: AMC)
Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) markets itself as the owner and operator of 141 locations across North America that combine entertainment and dining and provide customers with the ability to âEat, Drink, Play and Watchâ all in one place.
Dave & Buster’s offers a full menu of starters and appetizers, a full selection of alcoholic and non-alcoholic drinks, as well as a huge assortment of entertainment attractions focused on games and watching live sports and more. televised events. Dave & Buster’s currently has stores in 40 states, Puerto Rico and Canada.
Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) recently announced financial results for its first quarter of fiscal 2021, which ended May 2, 2021, including notes that revenues totaled $ 265.3 million $ 159.8 million in the first quarter of 2020 and $ 363.6 million in the first quarter of 2019, overall same-store sales were down 35% compared to the same period in 2019, and sales of comparable stores in fully operational stores decreased by 17% compared to the same period in 2019.
Brian Jenkins, CEO of Dave & Buster, said, âThe strength and resilience of the Dave & Buster brand has never been more evident. We saw significant improvement in demand across our stores in the first quarter, including our recently reopened stores in New York and California. We generated $ 265 million in total sales, exceeding the high end of our expected range for the quarter, and set a new record in our post-Covid sales recovery. This strong sales rebound, coupled with our lean operating model, generated exceptional profit streams in the quarter and generated $ 72 million in EBITDA, just 19% lower than in the first quarter of 2019. “
It will be interesting to see if the title can break out of its recent side action. Over the past week, the stock is net flat and looking for something new to trigger things. Over the past month, the stock’s shares have suffered from significant selling pressure, falling by around -4%.
Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) reported revenue of $ 265.3 million in its latest quarterly financial statements, representing revenue growth of 66%. In addition, the company is grappling with balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($ 20.2 million versus $ 279.2 million, respectively).
Amfil Technologies Inc (OTCMKTS: FUNN) is the parent company of three wholly owned subsidiaries: Snakes & Lagers Inc. owns the business name and is the owner of Snakes & Lattes Inc. which currently operates 3 table game bars and cafes located in Toronto, Ontario, 2 in Arizona (Tempe, Tucson) and 1 in Chicago, Illinois.
The company also owns FUNN Dispensaries, Inc., which is entering the Canadian cannabis dispensary market with its first dispensary slated to open by summer 2021 and a goal of significant expansion across Canada, as well as Interloc- Kings Inc., a solid-build company serving the Greater Toronto Area that the company plans to create in the future. But its Snakes & Lattes business is the most dynamic at this point, and the most likely to benefit from the Grand Reopening we are currently witnessing in North America.
Amfil Technologies Inc (OTCMKTS: FUNN) is expanding its Snakes & Lattes brand across North America and was the first board game bar and cafe in North America. It is also considered the largest in the world and has the largest public library of outstanding board games in North America for customers to choose from. The company also recently announced the hiring of its new COO, Aaron McKay, who will support the company in executing its strategy and vision for growth.
âAs we focus on reopening and expanding, we have a unique opportunity to help people connect with each other after the year we’ve had,â McKay said. âNothing makes me happier than seeing a room full of people laughing, playing games and hooking up over great food and drink. I’m excited to bring this feeling to as many people as possible by growing the brand and continuously improving ourselves every day.
FUNN stocks pulled back to test key support after a strong bullish breakout earlier this year. The stock is in an uptrend after its lows in the penny zone last year. Overall, shares have risen nearly 200% in the past year despite overwhelming challenges endured during the pandemic – a testament to the company’s ability to solve problems and demonstrate strong growth potential. .
Amfil Technologies Inc (OTCMKTS: FUNN) managed to generate revenue totaling $ 736,000 in overall sales in the company’s latest quarterly financial data – a figure that represents this industry’s struggle during a pandemic. The purpose of this article is to suggest that companies like this – and FUNN in particular – are likely to experience a dramatic expansion in performance given the changing environment we are currently seeing in North America.
AMC Entertainment Holdings Inc (NYSE: AMC) bills itself as the largest film exhibition company in the United States, the largest in Europe and the largest in the world with approximately 950 theaters and 10,500 screens worldwide.
AMC has propelled innovation in the exhibition sector by: deploying its Signature power reclining seats; provide improved food and drink choices; generate greater customer engagement through its loyalty and subscription programs, website and mobile apps; offering premium wide-format experiences and showing a wide variety of content, including the latest Hollywood releases and independent programming.
AMC Entertainment Holdings Inc (NYSE: AMC) recently announced that audiences have returned to AMC theaters in record numbers after reopening this weekend. AMC attributes the opening of F9: THE FAST SAGA, along with other films also currently showing in its theaters, to the fact that AMC had its highest weekend attendance rate in over a year.
According to the company, some 2 million people watched films at AMC theaters in the United States between Thursday, June 24 and Sunday, June 27. These are the biggest numbers AMC has recorded in the United States since it closed its theaters in March 2020 due to the Coronavirus pandemic.
And the stock has performed well in recent days, up about 4% at that time. The stock’s shares have risen over the past month, rallying around 122% in that timeframe on strong global action.
AMC Entertainment Holdings Inc (NYSE: AMC) generated sales of $ 148.3 million, according to information released in the company’s latest quarterly financial report. This is in addition to a sequential quarter-to-quarter growth rate of -8.7% on the top line. Additionally, the company is grappling with some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($ 842.1 million versus $ 1.6 billion, respectively).
Cinemark Holdings, Inc. (NYSE: CNK) proclaims itself one of the largest and most influential film companies in the world.
The Cinemark circuit, comprised of various brands that also include Century, Tinseltown, and Rave, operates 523 theaters (325 US, 198 South and Central America) with 5,872 screens (4,436 US, 1,436 South America) and Central) in 42 national states and 15 countries across South and Central America.
Cinemark Holdings, Inc. (NYSE: CNK) recently announced that it is further innovating its entertainment experience by expanding its indoor and online esports offering. This summer, Cinemark customers will have the option to participate in drop-in games at select theaters, and a new partnership with Mission Control will bring esports leagues online. For full details on how to enter, visit Cinemark.com/gamebig.
âAt Cinemark, we strive to continually evolve as an entertainment destination, providing our customers with the opportunity to get an entertaining escape in more than just movies,â said Justin McDaniel, Cinemark SVP of Global Content Strategy . âOur immersive environment lends itself particularly well to the gaming community, placing players in the worlds in which they operate. We’re excited to bring great games to the big screen with our walk-in game and to work with Mission Control to deliver Cinemark online esports leagues. “
Even in light of this news, CNK hasn’t really done much over the past week, with stocks seeing no net movement during that time.
Cinemark Holdings, Inc. (NYSE: CNK) generated sales of $ 114.4 million, according to information released in the company’s latest quarterly financial report. This is in addition to a sequential quarter-over-quarter growth rate of 16.4% on the top line. Additionally, the company is grappling with some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($ 512.8 million versus $ 594.5 million, respectively).