The Marcus Corporation (MCS) Stock Analysis & Winston Score

The Marcus Corporation runs two main businesses: movie theaters and hotels. Its Marcus Theatres division operates hundreds of movie screens across the Midwest, while its Marcus Hotels & Resorts division owns and manages upscale hotels and resorts in cities like Milwaukee, Chicago, and other U.S. markets. The company is one of the largest regional theater chains in the United States.

Marcus makes money by selling movie tickets, concessions, and hotel rooms, along with food and beverage services at both divisions. The company operates almost entirely in the United States, with a concentration in the Midwest region. Its local brand recognition and owned real estate give it some competitive stability, but both of its core businesses are vulnerable to the same risk: declining consumer spending on discretionary entertainment. The ongoing recovery of the theatrical film slate and hotel occupancy rates are the key factors that will determine whether the company can meaningfully improve its thin operating margins going forward.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+5.7% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

6.4%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~2 months

$11M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

The Marcus Corporation has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.3% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 31.4M (2021) → 31.3M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

89.3%

Premium pricing power — 89.3% gross margin

Operating Margin

-12.5%

Losing money on operations — -12.5%

ROCE

-3.1%

Weak — -3.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+2.5%

Nearly flat sales (2.5% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

737%

Turns 737% of profit into real cash

FCF Margin

4.9%

Thin free cash flow (4.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.42

Conservative — low debt load (0.42)

Interest Cover

1.61x

Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

52.4x

Expensive — P/E 52.4

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+7.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (52.4 → 44.8)

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Dividends

Dividend Yield

1.38%

Small dividend — 1.38% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+14.3%

Dividend growing fast (14.3% YoY)

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