The Marcus Corporation | $MCS Stock | Directors Announce 20% Dividend Increase

Marcus Corporation

The Marcus Corporation (NYSE: MCS)


Directors of The Marcus Corporation approved a 20% increase in the quarterly cash dividend of the company to $0.15 per share of common stock on February 21. The first dividend payments using the new rate will be done on March 15, this year.

The company’s previous quarterly dividend rate was $0.125 per share of common stock. The Board of Directors also announced a dividend of $0.1365 per share of “Class B” common stock. The dividend, which is not traded publicly will also be paid out on March 15 to shareholders of record.

MCS Earnings & Outlook

Marcus Corporation

Shares of the company rose 4% on Wednesday, but are 11% in the last twelve months. The operator of film theaters and hotels said it is going to spend other savings realized from the tax revamp that was signed into at the end of 2017 to invest in its employees and business.

The Marcus Corporation has also increased the funding contribution to its 401(k) plans. Investors sentiments reduced to 1.13 in 2017 Q3. In the 2017 Q2, it was 1.4. The company lost 23 investors who sold their shares while another 37 reduced holdings.

Marcus Corporation’s Executive Comments

“The dividend increase reflects our ongoing commitment and strong financial performance to increasing shareholder value. We expect a meaningful impact from the new tax law that was signed in December 2017 and are delighted to share this benefit with our stakeholders who have been influential in our success and growth,” said Stephen H Marcus, chairman of the company.

“The reduction in our tax rate will free-up extra cash to invest in our shareholders, associates, community, and businesses. We expect to identify other opportunities that will benefit all out stakeholders in 2018,” Marcus added.

The Marcus Corporation Profile

The Marcus Corporation was incorporated in 1992 and operates mainly in two business segments: Hotels and Resorts, and Theatres. The Hotels and Resorts segment operates resorts and hotels in Wisconsin, Oklahoma, Nebraska, and Illinois, and manages resorts, hotels and other properties in Minnesota, Wisconsin, Texas, California, Georgia, Nevada, Florida.

The Theatres segment runs multiscreen motion picture theatres in Illinois, Ohio, Wisconsin, Minnesota, Iowa, Nebraska and North Dakota, and an entertainment center in Wisconsin.

As of December 2015, the Company operated and owned 53 movie theatre locations with 668 screens in Illinois, Wisconsin, Iowa, Nebraska, Minnesota, Ohio and North Dakota. The Company’s Take Five Lounges, Take Five Express and bars, offer a chef-inspired menu, cocktails, locally brewed wines and beers. Marcus’ Zaffiro Express outlets offers include salads, appetizers, sandwiches, and desserts.

The Company’s hotels and resorts include The Hilton Milwaukee City Center, The Pfister Hotel, Hilton Madison at Monona Terrace, InterContinental Milwaukee, The Grand Geneva Resort & Spa, Skirvin Hilton, The Lincoln Marriott Cornhusker Hotel and AC Hotel Chicago Downtown.

The Company competes with Cinemark, Regal Cinemas, AMC Entertainment, Carmike Cinemas, Marriott Corporation, Hyatt Corporation, Starwood Hotels & Resorts, and Hilton Worldwide. The headquarter of The Marcus Corporation is in Milwaukee, Wisconsin. –Reuters