Movie Theaters Aren’t Married to the Box Office

Movie Theaters Are Still Growing

In our opinion, movie theaters remain a very misunderstood industry. Much of the time, these stocks move up and down based on the popularity of the movies showing over any given weekend. In addition, people focus on the competition for entertainment dollars as movie theaters compete with golfing, restaurants, baseball games, and concerts among many other options. Finally, there is the view that people will simply watch movies at home via Netflix (NFLX) streaming or on cable.

There are few in the industry that would argue against there being some truth to those points. However, they would also point out that the competition angle, movie popularity level, and people staying home have been issues for quite some time and yet movie revenues continue to rise over time. Read the rest of the article here…