What happened
Shares of AMC Entertainment (AMC 2.08%) climbed by 7.6% on Monday after the company announced solid weekend traffic figures for its movie theaters.
So what
AMC said more than 2 million people watched movies at its U.S. theaters between June 24 and June 27, with an additional 500,000 moviegoers visiting its international locations. AMC credited the strong results to interest in the latest installment of the popular Fast & Furious franchise, F9: The Fast Saga, which generated roughly $70 million in ticket sales over the weekend.
Movie fans are returning to theaters. Image source: Getty Images.
"The combination of widespread vaccination and the release once again of blockbuster movies is proving to be the magic formula for the return of moviegoing," CEO Adam Aron said in a press release. "We could not be more excited about this post-reopening record weekend, and the coming slate of what look to be more blockbuster movies being released this summer and beyond."
Now what
The traffic rebound comes at an urgent time for AMC. After being hit hard by coronavirus-related theater closures, the company was forced to raise cash via stock and debt offerings to survive. But if it is to remain viable over the long term, its theater operations must return to profitability. Investors hope that this past weekend's results are a sign that things are heading in that direction.
