Shares of both companies have enjoyed gains since the news broke that the No. 2 and No. 4 U.S. theater chains would combine to become the industry leader.
News & Analysis: Carmike Cinemas
AMC ups its box office market share with a $1.1 billion acquisition, while Shake Shack worries investors with a ho-hum 2016 outlook.
The movie theater deal is worth around $1.1 billion.
The combined company will be a giant in the theater industry, with around 8,500 screens.
Everyone loves the movies, but with declining ticket sales, are movie theaters a sound investment?
Reuters reports that Carmike Cinemas has put itself up for sale
The theater chain is growing its presence across the United States with an ambitious acquisition strategy. As one of the industry's outperformers, Carmike isn't a cheap stock, but investors can still catch a good deal.
The two companies will join forces in selected theaters throughout the Southeast.
Just the facts, Fool.
Keep your eye on margins.