AMC Entertainment Holdings Inc., the popular movie-theater chain, is set to introduce branded premium gourmet candy alongside its successful branded popcorn sales, according to CEO Adam Aron.
Second-Quarter Results Exceed Expectations
The meme-stock favorite, AMC, announced impressive second-quarter results on Tuesday. During a conference call following the market’s closure, Aron provided an update on the company’s plan to expand its branded popcorn offerings and venture into new product lines.
Walmart Partnership Drives Popularity
Earlier this year, AMC partnered with retail giant Walmart Inc. for its popcorn debut. Initially available at hundreds of Walmart stores before the Academy Awards on March 12, the partnership has since expanded to include 2,600 Walmart locations.
During the conference call, Aron revealed that the AMC-branded ready-to-eat and microwave-at-home popcorn has been incredibly popular, with high demand at Walmart stores and their online platform.
Expansion into Other Grocery Chains Expected
Aron shared that AMC is actively exploring opportunities to expand its popcorn partnership to other grocery chains. This strategic move has the potential to generate an estimated annual revenue of $100 million for AMC.
With its continued success in branded popcorn sales and the exciting launch of premium gourmet candy, AMC Entertainment continues to innovate and capture the hearts of movie-goers and snack enthusiasts alike.
AMC to Launch Premium Branded Candy at Theaters
AMC, inspired by the success of its branded popcorn, has exciting plans to introduce premium branded candy at its theaters. This much-anticipated launch is expected to take place either later this year or in early 2024. According to the CEO, the company firmly believes in the potential success of their candy lines, just as they have seen with their popcorn lines.
A Delicious Assortment
The premium candy selection will include a delectable variety of chocolate candy and gummies. During the earnings call, the CEO even had the pleasure of sampling some of the offerings. He couldn’t help but praise the scrumptious chocolate-covered pretzels, which he confidently described as “to die for.” Rest assured, popular chocolate products from established brands like Hershey Co. and Nestle will still be available at AMC theaters.
Liquidity Challenges and Leadership Confidence
Apart from discussing their exciting new revenue streams, the CEO addressed AMC’s liquidity challenges once again. He candidly admitted that the company has some pressing short-term liquidity issues that need addressing. However, he expressed unwavering confidence in the highly capable leadership team’s ability to manage the situation. Aron assured stakeholders that AMC will continue to execute its plans successfully.
As of June 30, AMC had a cash position of $435.3 million (excluding restricted cash of $22.9 million) and available liquidity of $643.4 million.
AMC’s Stock Performance
AMC’s stock faced a slight setback in Tuesday’s session, with a decline of 0.6%. Despite this, it outperformed the S&P 500 index, which experienced a decline of 0.4%. Moreover, during extended trading, AMC’s stock fell by an additional 1%.
AMC’s Preferred Equity
In addition to the stock, AMC’s Preferred Equity units also experienced a decline. These units ended Tuesday’s session down by 2.3%. However, there was a slight recovery during extended trading, with a rise of 1.5%.