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Marcus Corp (MCS) reported first quarter earnings yesterday and the stock popped $1.52 or 6.76% in response today. While revenue increased just 8% to $93.4 million and earnings from “continuing operations” increased 10.7% to $13.6 million, investors were clearly thrilled by the 27.9% increase in operating income in the hotels and resorts division. This probably comes as no surprise to business travelers who have seen hotel room prices creep up steadily over the last two years. The 6% rise in theatre attendance at its 501 movie screens lay to rest the concerns on Wall Street that 2006 may not be a good year for the U.S box office.
The stock is now up a market scorching 41.76% since I first mentioned it in a blog post titled Lets Go To The Movies early this year (after including the $7/share special dividend distributed in February) and is up 14.72% since my follow up post titled Marcus Makes A Comeback less than two months ago. In spite of these returns the stock continues to stay under Wall Street’s radar and only has an average daily volume of about 100,000. On one of those rare occasions when I happened to catch a show of Jim Cramer’s Mad Money With Cramer a few months ago, a caller asked Cramer about Marcus and he said he was not familiar with the stock.