Please ensure Javascript is enabled for purposes of website accessibility

Cedar Fair Is Not Disney

By Rick Munarriz – Updated Apr 7, 2017 at 8:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The regional amusement park chain moves in a new direction.

There's a new sheriff in town at Cedar Fair (NYSE: FUN).

After running the regional amusement park chain since the 1980s, Dick Kinzel retired over the weekend. Matthew Ouimet -- hired as Kinzel's heir apparent last year -- is the new CEO.

Ouimet cut his teeth at Disney (NYSE: DIS), where he spent several years managing Disney's cruise line, resorts, and theme parks.

Ouimet isn't Kinzel, an insider who worked his way up the ranks at the company's flagship Cedar Point amusement park in Ohio. Ouimet is replacing Kinzel because he's an outsider who knows that a theme park can't survive on the turnstile clicks of thrill-seeking teens alone. Cedar Fair needs to do a better job of attracting young families to its gated attractions, and it needs to beef up its technology to make sure that it catches up with the industry.

"We've always got to be known for great thrills," Ouimet said in a recent AP interview. "It has served us well. But I also want to be known for great connections, and that this is where families come together."

Well, Ouimet is going to find out that that's easier said than done.

I've heard this before.

Six Flags (NYSE: SIX) wanted to go the family-friendly route when it also tapped a Disney executive -- in this case ESPN rising star Mark Shapiro -- to run the fledgling chain of thrill parks five years ago.

I spent an enlightening day with Shapiro at Great Adventure in New Jersey early in his first season at Six Flags. He broke out some of the tricks that worked at Disney. He beefed up the costumed characters at the park, introduced character brunches, and added family-friendly attractions.

Sadly, his company ran out of money before he could execute his vision. Six Flags filed for bankruptcy, and a new regime took over.

Ouimet knows that Cedar Fair needs to upgrade its technology.

I love Cedar Point. I'm there every few years to ride its world-class coasters. I was there this summer. The extent of the park's technology is a texting feature that promised to offer daily news and deals, but in reality spit out a lone obvious tip -- and then ignored my unsubscribe requests. Instead of getting wait times at the popular attractions or virtual coupons, I was reminded that I can get discounted park tickets if I stayed on-site (which I was doing already).

Disney has its elaborate FastPass distribution system, where guests can scan their tickets to secure shorter lines on select attractions. Six Flags has a premium Flash Pass gadget that isn't cheap, but creates virtual queues for its most popular rides. Busch Gardens has Quick Queue, where guests in a hurry can pay for quick access to its larger attractions.

Cedar Fair has nothing. It's so old-school that it once tried to roll out a queue reservation system at its flagship park involving stamping return times on patron hands. It figured limiting guests to two stamps -- one on each hand -- would help keep folks out of hot lines. Really. I was there that season a few years ago. You should've seen the mad hand-scrubbing taking place in the restrooms.

Ouimet will succeed on the technological front. It's really hard to go backward. However, it's going to be a harder sell to woo local young families. The parks are filled with plenty of kids rides and plenty of thrill rides, but few themed attractions that the families can experience together.

Cedar Fair also isn't in the same dire financial straits that Six Flags found itself in two years ago, but it's still facing a hefty debt load that isn't getting any lighter as investors clamor for larger payouts.

Ouimet is going to have his hands full next season. Let's hope he's ready for the mad hand-scrubbing that's necessary to see his vision through.

If you like to stay on top of what happens next -- and I'm guessing you do because you're reading this article -- how about checking out Motley Fool's top stock for 2012? Spoiler alert: It's not Cedar Fair. However, it is a free report, but only for a limited time so check it out now.

Motley Fool newsletter services have recommended buying shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Disney. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$98.12 (-1.39%) $-1.38
Cedar Fair, L.P. Stock Quote
Cedar Fair, L.P.
FUN
$40.08 (-0.99%) $0.40
Six Flags Entertainment Corporation Stock Quote
Six Flags Entertainment Corporation
SIX
$18.20 (-1.78%) $0.33

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.