AMC CEO: Moviegoers spending despite inflation
AMC admission revenue increased more than 15% last weekend compared to pre-pandemic levels
AMC Entertainment CEO and President Adam Aron tells 'The Claman Countdown' theater attendance is up 15% from pre-pandemic levels.
Moviegoers are flocking to theaters and opening up their wallets to see blockbuster films like "Top Gun: Maverick," "Dr. Strange in the Multiverse of Madness" and "Jurassic World: Dominion."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT | 4.48 | -0.10 | -2.18% |
Last weekend, AMC Entertainment had a total of 4.9 million moviegoers attend screenings at its theaters, resulting in an admission revenue increase of more than 15% compared to the same period before the pandemic.
AMC CEO Adam Aron noted that the strong attendance has resulted in a boost in concession sales.
"As moviegoers have been returning to theaters, they’ve been stopping at our concession stands and are spending like they’ve never spent before," he told FOX Business' "The Claman Countdown" Friday.
WWE BOARD PROBES VINCE MCMAHON FOR ALLEGED SECRET PAYMENT TO WOMAN OVER AFFAIR: REPORT
"Our concession revenue per head is up almost 40% compared to pre-pandemic levels."
AMC CEO Adam Aron told FOX Business' "The Claman Countdown" concessions revenue per head is up almost 40% compared to pre-pandemic levels. (AP Photo/Keith Srakocic / AP Newsroom)
Despite the growth, Aron warned that the company is being hit by inflationary pressures and rising labor costs.
"We, like everybody else, are being hit by inflationary pressures," he said. "Labor rates are going up. We are paying our employees more to staff our theaters."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Despite the enthusiasm of its roughly 4 million retailer shareholders, AMC stock is down more than 50% year to date. Aron believes that the stock will find "the appropriate level" over time.
Adam Aron arrives for the 33rd American Cinematheque Award Presentation Honoring Charlize Theron at The Beverly Hilton Hotel Nov. 8, 2019, in Beverly Hills, Calif. (Albert L. Ortega/Getty Images / Getty Images)
"My job as CEO of the business, especially coming out of 27 months of pandemic, is to restore this company to health," Aron explained. "As I’ve been saying, we’re on a glide path to recovery. We’re very optimistic about the future of the company."
Looking ahead, the company is anticipating continued momentum throughout the summer with Disney and Pixar's "Lightyear," Warner Brothers' "Elvis," Universal Pictures' "Minions; Rise of Gru" and Marvel's "Thor: Love and Thunder" set to release over the coming weeks.