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• Imagine a company that's a blend of AMC Theatres (for movies) and a luxury hotel operator like Hyatt Hotels.
• Essentially, it's a company that runs both movie theaters (similar to Cinemark) and upscale hotels (like Marriott), but on a smaller, regional scale.

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• Movie Theatres: Operates and manages a chain of movie theatres primarily under the Marcus Theatres brand, offering film exhibition, food, and beverage services.
• Hotels & Resorts: Owns and manages a portfolio of hotels and resorts, providing lodging, dining, meeting, and event services to business and leisure travelers.

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Marcus & Millichap, Inc. (symbol: MCS) is a commercial real estate brokerage firm. Its core business involves facilitating the purchase, sale, and financing of commercial properties. Due to the transactional nature of its business, it does not typically have "major customers" in the sense of a few large, recurring corporate clients who consistently account for a significant portion of its revenue. Instead, its revenue is derived from commissions generated across a broad base of diverse clients involved in numerous individual transactions.

Marcus & Millichap primarily serves clients within the commercial real estate investment market, which can be categorized as follows:

• Private Investors: This category encompasses high-net-worth individuals, family offices, and smaller private partnerships that are actively engaged in buying, selling, or exchanging various types of commercial real estate assets (e.g., multifamily properties, retail centers, office buildings, industrial facilities, self-storage, hospitality).
• Institutional Investors & Funds: This segment includes larger, sophisticated investment entities such as Real Estate Investment Trusts (REITs), pension funds, private equity firms, and other institutional capital sources. These clients typically engage in larger-scale and often more complex commercial property transactions.
• Developers & Corporate Users: This category comprises companies involved in the development of new commercial properties, as well as businesses and corporations that are acquiring, disposing of, or leasing real estate for their operational needs rather than purely for investment purposes.

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Gregory S. Marcus, Chairman, President and Chief Executive Officer

Gregory S. Marcus joined The Marcus Corporation in 1992, was elected president in January 2008, and became chief executive officer in January 2009. He is the third generation of the Marcus family to lead the company, which was founded by his grandfather, Ben Marcus, in 1935. Throughout his career at The Marcus Corporation, he has been involved in nearly all facets of the company. He previously served as Senior Vice President of Operations & Development at Woodfield Suites and Interim Chief Operating Officer at Baymont Inns & Suites. Additionally, he is a Principal at Marcus Investments LLC, a private equity firm established in 1999 that operates as a subsidiary of The Marcus Corporation.

Chad M. Paris, Chief Financial Officer and Treasurer

Chad M. Paris was promoted to Chief Financial Officer upon Douglas A. Neis's retirement in May 2022, having joined The Marcus Corporation in October 2021 as corporate controller and treasurer. Before his tenure at Marcus Corporation, Paris was the Senior Vice President and Chief Financial Officer at Jason Group, Inc. (formerly Jason Industries, Inc.), a global manufacturing company, where he oversaw accounting, financial planning, tax, treasury, investor relations, and information technology. He also held various leadership roles in corporate and business unit finance at Jason prior to becoming CFO in 2017, and earlier in his career, he worked as an audit senior manager for Deloitte & Touche LLP.

Michael R. Evans, President, Marcus Hotels & Resorts

Michael R. Evans became the President of Marcus Hotels & Resorts in January 2020.

Mark A. Gramz, President, Marcus Theatres Corporation

Mark A. Gramz was promoted to President of Marcus Theatres on October 1, 2022. He began his career with the company in 1971 as a part-time associate and has since held various positions, including general manager, district manager, vice president of operations for southern Wisconsin, and executive vice president of Marcus Theatres.

Kim M. Lueck, Chief Information Officer, The Marcus Corporation

Kim M. Lueck joined The Marcus Corporation's corporate IT team in 2000 and rejoined Marcus Theatres in 2006. She was promoted to chief information technology officer for Marcus Theatres in 2008 and continues to serve in that role, in addition to her position as Chief Information Officer for the Marcus Corporation.

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The most significant risk to Marcus Corporation is the **cyclical nature of the entertainment and hospitality industries and the inherent dependence on film slate for its theatre division**. Both the theatre and hotel segments are highly susceptible to economic downturns, which can lead to reduced consumer spending on leisure activities and impact revenues. More specifically, the performance of the theatre division, which is a primary revenue driver, is heavily reliant on the quality and quantity of film releases. A less favorable film lineup, such as that experienced in Q3 2025, can lead to substantial decreases in attendance and revenue for the theatre segment, highlighting this as a "structural risk for any theatre operator".

Secondly, Marcus Corporation faces **profitability and financial stability concerns**. Despite demonstrating robust revenue growth, the company has reported challenges in profitability, including a negative net margin in the past. The Altman Z-Score, a measure of financial health, has placed the company in the distress zone, indicating potential financial vulnerability. Analysts also forecast slower revenue growth for Marcus compared to its industry peers, which contributes to a lower price-to-sales ratio and suggests investor skepticism regarding future earnings growth and profit margins. Rising interest rates could also exacerbate these concerns by increasing financing costs.

Finally, the **capital-intensive nature of renovations and property upgrades** presents an ongoing operational risk. While strategic investments in hotel and theatre renovations are intended to enhance customer experience and drive long-term value, they can lead to short-term disruptions and increased expenses. For example, the renovation of the Hilton Milwaukee negatively impacted revenue per available room (RevPAR) due to reduced capacity during seasonally high-demand periods. These significant capital expenditures can also affect profitability in the short term, as seen with increased depreciation expenses following renovations.

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The ongoing strategic shift by major film studios to prioritize their direct-to-consumer streaming platforms and to continuously re-evaluate and shorten the exclusive theatrical release windows. This erosion of exclusivity diminishes the unique value proposition of the moviegoing experience and allows audiences quicker access to new content at home, directly impacting attendance and revenue for exhibitors like Marcus Theatres. This is an emerging threat because the exact long-term balance between theatrical and streaming distribution is still being negotiated and defined, with studios consistently testing and adjusting their release strategies.

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Movie Theaters: The U.S. movie theater market size is estimated to be approximately $16.0 billion in 2025.

Hotels & Resorts: The U.S. hotels market size is projected to reach approximately $280.63 billion to $286.5 billion in 2025.

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Marcus Corporation (MCS) is expected to drive future revenue growth over the next 2-3 years through several key initiatives across its theatre and hospitality segments:

1. Strong Film Slate for Marcus Theatres: The company anticipates a robust lineup of films, particularly for 2026, which is projected to be rich in franchises and family-oriented movies. This expected strong content is likely to boost attendance and, consequently, admission revenue.
2. Premium Cinema Upgrades and Enhanced Food & Beverage Offerings: Marcus has been investing in upgrading its cinema experiences, including premium offerings and expanded food and beverage options. These enhancements are expected to increase per-patron spending and generate higher ancillary income. Strategies such as targeted surcharges for blockbuster showings and optimized matinee pricing are also designed to create incremental revenue streams.
3. Growth in Group Bookings for Marcus Hotels & Resorts: Forward-looking statements indicate significant momentum in group hotel room bookings. Group room pace for 2026 is reportedly running approximately 14% to 20% ahead of the previous year's levels, with banquet and catering revenues showing similar positive trends. This increase in group business is expected to contribute to higher, more predictable, and higher-margin revenues for the hospitality division.
4. Benefits from Hotel Renovations: The completion of major hotel renovation projects is anticipated to lead to increased occupancy and higher Revenue Per Available Room (RevPAR). These investments are designed to unlock previously constrained revenue and allow the properties to generate better returns.

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