Here are a few analogies to describe The Marcus Corporation (MCS):

• A regional version of AMC Entertainment meets a smaller-scale Marriott International.
• Imagine if AMC Entertainment also owned and managed hotels, operating similarly to a regional Hyatt Hotels.

• Movie Exhibition: The operation of multiscreen motion picture theatres showing films to the public.
• Family Entertainment Centers: The operation of entertainment facilities offering various activities beyond movies.
• Hotel and Resort Ownership and Operation: The ownership and direct management of full-service hotels and resorts.
• Hotel and Resort Management Services: The provision of management services for full-service hotels, resorts, and other properties on behalf of third parties, including specific hospitality services for vacation ownership developments.

The Marcus Corporation (MCS) primarily serves individual consumers through its movie theaters and hotels/resorts, but also has a significant business-to-business component through its hospitality management services.

Its major customer categories are:

1. Moviegoers: Individuals who purchase tickets to attend movies at Marcus Theatres, Movie Tavern by Marcus, and BistroPlex brands, as well as visitors to Funset Boulevard, a family entertainment center.
2. Hotel and Resort Guests: Individuals and groups who book stays, events, and other services at Marcus Corporation's wholly-owned, majority-owned, and managed full-service hotels and resorts.
3. Third-party Property Owners and Developers: Businesses or entities that contract Marcus Corporation for hospitality management services for their hotels, resorts, and vacation ownership developments.

• The Walt Disney Company (DIS)
• Warner Bros. Discovery (WBD)
• Paramount Global (PARA)
• Comcast Corporation (CMCSA)
• Sony Group Corporation (SONY)
• Lions Gate Entertainment Corp. (LGF.A, LGF.B)

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

Gregory S. Marcus has been president of The Marcus Corporation since January 2008, chief executive officer since January 2009, and chairman of the board since May 2023. He joined the company in March 1992. He is the third generation of the Marcus family to lead the company, which was founded by his grandfather, Ben Marcus, in 1935. Mr. Marcus is also a Partner and Board Member at Marquee Capital, a platform for hospitality and real estate investing.

Chad M. Paris, Chief Financial Officer and Treasurer

Chad M. Paris was promoted to chief financial officer and treasurer of The Marcus Corporation on May 15, 2022. He joined the company in October 2021 as corporate controller and treasurer. Before joining The Marcus Corporation, Mr. Paris served as senior vice president and chief financial officer at Jason Group, Inc. (formerly Jason Industries, Inc.), a global manufacturing company, starting in August 2017. He also held various other leadership roles in corporate and business unit finance at Jason Group, Inc. Earlier in his career, Mr. Paris worked as an audit senior manager for Deloitte & Touche LLP.

Thomas F. Kissinger, Senior Executive Vice President, General Counsel and Secretary

Thomas F. Kissinger has served as senior executive vice president, general counsel, and secretary of The Marcus Corporation since August 2013. He joined the company in August 1993 as secretary and director of legal affairs, eventually becoming general counsel and secretary in August 1995. Prior to his time at The Marcus Corporation, he was an associate with the law firm of Foley & Lardner LLP for five years. He also previously served as interim president of Marcus Hotels & Resorts.

Michael Evans, President, Marcus Hotels & Resorts

Michael Evans became the President of Marcus Hotels & Resorts in January 2020. Before joining, he founded Apex Capital Ventures LLC in 2017, a real estate company focused on the development and acquisition of hotels, resorts, and branded residences, where he served as CEO. He also previously held the position of Chief Operating Officer for MGM Hospitality, a division of MGM Resorts International.

Mark A. Gramz, President, Marcus Theatres

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 while in high school. Over his tenure, he has held various roles, including general manager, district manager for the Milwaukee metro area, vice president of operations for southern Wisconsin, and senior vice president of operations.

The Marcus Corporation (MCS) faces several key risks primarily stemming from the evolving entertainment landscape and the inherent sensitivities of the hospitality industry.

The most significant risk to The Marcus Corporation's business is the **declining theatrical attendance and intense competition from home entertainment, particularly streaming services.** The rise of streaming platforms has fundamentally altered how audiences consume films, leading to a notable shift away from traditional movie theaters. Consumers increasingly prefer the convenience and affordability of watching movies and shows from home, impacting ticket sales and revenue for theater operators like Marcus Theatres. This trend is exacerbated by movie studios' changing release strategies, with some films becoming available on streaming platforms simultaneously with or shortly after their theatrical release, further reducing the urgency for audiences to visit cinemas. In the third quarter of fiscal 2025, Marcus Theatres experienced a 16.6% revenue decline, largely attributed to a weaker film slate, highlighting the segment's vulnerability to content availability and audience preference.

Another crucial risk is the **sensitivity to economic conditions and consumer discretionary spending.** Both the movie theater and hotel segments of The Marcus Corporation's business rely heavily on consumers' willingness to spend on non-essential goods and services. Economic downturns, recessions, or inflationary pressures can lead individuals and businesses to reduce discretionary expenditures on entertainment and travel, directly impacting the company's revenue across both divisions. The hospitality industry, in particular, is highly susceptible to economic fluctuations, with decreased consumer spending on dining out, leisure activities, and hotel stays. The company itself acknowledges that economic downturns pose a risk to discretionary spending in its entertainment and hospitality operations.

Finally, The Marcus Corporation faces **intense competition within the hospitality industry.** The hotel and resorts segment operates in a notoriously competitive market, facing pressure from other traditional hotel chains, independent hotels, and alternative accommodation platforms such as Airbnb. This heightened competition makes it challenging to attract and retain guests, as customers can easily compare prices, amenities, and offerings. Additionally, the hospitality sector is grappling with challenges such as rising operational costs, labor shortages, and evolving customer expectations for technology and personalized experiences, which further intensify competitive pressures.

The acceleration of major film studios' strategies to release new movies directly to streaming platforms or with significantly shortened theatrical exclusivity windows, diminishing the unique appeal and revenue potential of the traditional cinema experience.

Movie Theatres: The U.S. movie theatre market is anticipated to be USD 20.11 billion in 2026.

Hotels and Resorts: The U.S. hotels market size was estimated at USD 263.21 billion in 2024 and is projected to grow to USD 395.69 billion by 2030, at a compound annual growth rate of 7.1% from 2025.

For The Marcus Corporation (MCS), the following are expected drivers of future revenue growth over the next 2-3 years:

• Enhanced Cinema Experience and Premium Offerings: Investments in state-of-the-art cinematic technologies, such as heated DreamLounger recliner seats, ScreenX, 4DX, and UltraScreen DLX auditoriums, are expected to drive higher per-capita spending and attract more patrons seeking differentiated experiences. The company also implements strategic pricing actions, including ticket price optimization and revised promotions, to maximize admissions revenue. Furthermore, expanding in-lobby dining and concession services, with plans to add more concession stands, aims to boost per-customer spending in theatres.
• Strategic Hotel Renovations and Property Enhancements: Significant capital investments in renovating existing hotel properties, such as the Hilton Milwaukee and The Pfister Hotel, are designed to enhance the guest experience, improve competitive standing, attract increased leisure demand, and command higher average daily rates (ADR). These renovations are also directly linked to securing more group bookings, which are projected to increase.
• Customer Loyalty and Engagement Programs: The launch and expansion of loyalty initiatives, such as the Marcus Movie Club in late 2024, are aimed at fostering recurring customer engagement and loyalty. These subscription services offer benefits like monthly movie credits and food and beverage discounts, which are designed to increase the frequency of visits and boost concession spending across the theatre segment.
• Optimistic Film Slate and Strategic Pricing in Theatres: Management has expressed optimism for the 2026 film slate, anticipating a stronger mix of "tent-pole" films that are expected to drive attendance. Coupled with ongoing strategic pricing actions and ticket price optimization, a favorable film lineup will directly contribute to increased theatre admissions revenue.
• Expansion of Hotel Portfolio through Acquisitions and Group Bookings: Marcus Hotels & Resorts is strategically expanding its portfolio through joint acquisitions and management contracts, as exemplified by the March 2024 joint acquisition of the Loews Minneapolis Hotel (rebranded as The Lofton Hotel). Additionally, the company is focused on securing more group bookings for its hotels, which is a key driver for revenue growth within the hospitality segment. The booking pace for fiscal years 2025 and 2026 indicates a positive trend in this area.

Share Repurchases

• The Marcus Corporation authorized a new stock repurchase plan for 4,000,000 shares in October 2025.
• The company repurchased approximately 1.1 million shares for $18.0 million in cash during the full fiscal year 2025.
• Since resuming share repurchases in the third quarter of fiscal 2024, cumulative buybacks totaled over 1.8 million shares for approximately $28 million in capital returned to shareholders.

Outbound Investments

• In December 2021, Marcus Hotels & Resorts formed a joint venture with Searchlight Capital Partners to acquire and manage the Kimpton Hotel Monaco Pittsburgh.
• In March 2024, the company formed a joint venture with Hempel Real Estate and Robinson Park to acquire the Loews Minneapolis Hotel, which it manages and is converting to a Tapestry Collection by Hilton.
• The company plans to seek opportunities to invest in new hotels and increase the number of rooms under management, including through acting as an investment fund sponsor or joint venture partner.

Capital Expenditures

• Total capital expenditures for fiscal year 2025 were $83.2 million, with a significant portion dedicated to hotel renovations, including projects at the Hilton Milwaukee and Grand Geneva Resort & Spa.
• For fiscal year 2024, capital expenditures were $79.2 million, which included approximately $48.9 million in the hotels and resorts division focusing on renovations at The Pfister Hotel, Grand Geneva Resort & Spa, and the Hilton Milwaukee.
• Projected capital expenditures for fiscal year 2026 are between $50 million and $55 million, with approximately $25 million to $30 million allocated for hotels and $20 million to $25 million for theaters.