Regal Entertainment Group (NYSE: RGC) is the largest and most geographically diverse in its class, serving approximately 220 million moviegoers a year.
This summer, Regal theaters will offer tickets at the low, low price of $1.
Of the 569 theaters in 42 states, D.C., Samoa, Guam and Saipan, at least 340 locations will be participating in Regal’s Summer Movie Express, providing severely-discounted tickets for family movies this summer.
While Regal publicizes that concession prices are not the same at every location, the fact remains that concessions significantly affect the revenue and total profits.
One of Regal’s most profitable vendors is undoubtedly The Coca-Cola Co (NYSE: KO), which could feel the influx of Regal visitors in the next few months.
Regal also provides Nestlé (OTC: NSRGY) brand concessions, such as Raisinets, Butterfingers, Crunches, Sno Caps and Edy’s ice cream. Other notable concession vendors include Tyson Foods, Inc. (NYSE: TSN) and Nathan’s Famous, Inc. (NASDAQ: NATH).
In contrast, peers within the sector could be negatively influenced if the Summer Express promotion takes away potential customers.
The three top competitors in the cinema industry are AMC Entertainment Holdings, Inc. (NYSE: AMC), Cinemark Holdings, Inc. (NYSE: CNK) and Carmike Cinemas, Inc. (NASDAQ: CKEC).
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