The Marcus Corporation (NYSE:MCS) Breaks Out; Momentum Risks Near-Term Pullback

Strong momentum pushed the shares above the prior 52-week high while underlying cash-flow weakness and negative operating margins keep valuation elevated. Near-term price action likely hinges on whether bullish momentum sustains or gives way to a technical retracement.

Recent News

May 21, 2026 — The Marcus Corporation scheduled a virtual Annual Meeting of Shareholders. May 7, 2026 — Marcus Theatres promoted Rob Novak to Executive Vice President of Operations and Food & Beverage. April 23, 2026 — UNITE HERE Local 1 released a report alleging related-party transaction concerns connected to Marcus operations. April 7, 2026 — Jeffry F. Tomachek promoted to President of Marcus Theatres. April 6, 2026 — Marcus Theatres reported its highest-grossing five-day Easter weekend. June (early) 2026 — an announcement noted an executive retirement.

Technical Analysis

ADX / DI+/DI-: ADX at 56.97 signals a very strong trend. DI+ shows a peak-and-reversal, indicating waning directional bullish pressure. DI- is decreasing, indicating falling bearish pressure; the mixed directional signals raise the probability of a short-term reversal while trend strength remains elevated.

MACD: MACD sits at 1.33 with the MACD line above its 1.12 signal line and the MACD trend increasing; that crossover and rising MACD indicate ongoing bullish momentum that supports further upside while the crossover remains intact.

MRO: MRO at 34.65 with a peak-and-reversal indicates the price trades above the modeled target and therefore carries measurable downside pressure toward fair-value levels implied by the oscillator.

RSI: RSI at 67.6 and rising approaches overbought territory, increasing the chance of short-term consolidation or a pullback from extended intraday levels.

Price vs. Moving Averages & Bands: Last close $24.89 sits above the 12-day EMA ($23.02), 20-day average ($22.74), 50-day average ($19.66) and 200-day average ($16.55), and exceeds the prior 52-week high of $24.35—a technical breakout confirmed on elevated volume. The close lies near the upper Bollinger band (1σ upper $24.25; 2σ upper $25.75), implying proximity to the short-term upper volatility band.

Volume & Support: Intraday volume (≈1,469,607) runs well above the 10-day average (≈394,680), validating the breakout move but also signaling potential exhaustion if follow-through volume fades. SuperTrend lower support sits near $22.13 and represents an immediate technical level to watch for consolidation.

 


Fundamental Analysis

Earnings & Revenue (Q1 Reported April 30, 2026): Q1 revenue $154.4M beat expectations; EPS -$0.51 beat estimate -$0.54 by $0.03 (a 5.56% surprise). Operating and earnings metrics remain pressured despite the beat: EBIT -$20.36M and EBITDA -$2.53M reflect continued negative operating profitability for the quarter.

Profitability: EBIT margin -13.19% contrasts with the industry peer mean of 11.95% and industry peer median of 15.26%, leaving the company materially below peer profitability measures. EBIT margin contracted QoQ by -17.71% and worsened YoY by -8.12% (percentage-point movements expressed as percentages of prior periods), underscoring near-term margin pressure tied to operating expense load and revenue mix.

Cash Flow & Liquidity: Free cash flow totaled -$21.87M with operating cash flow -$15.22M and cash on hand $11.23M; the company ended the period with net debt $162.83M. Free cash flow yield registers about -4.09%. Current ratio 0.35 remains below the industry peer mean of 0.80, signaling constrained short-term liquidity relative to peers.

Balance Sheet & Capital Structure: Debt-to-assets stands at 35.27% and debt-to-equity roughly 79.31%. Asset turnover 0.1539 exceeds the industry peer mean of 0.1123, indicating relatively efficient revenue generation from assets despite lower margins. Enterprise multiple shows a negative value driven by negative operating earnings.

Valuation Context: Price-to-book 1.21 sits below the industry peer mean of 2.12; price-to-sales 3.46 sits below the industry peer mean of 12.45, reflecting mixed signals where market multiples compress relative to some peers even as WMDST’s valuation model labels the stock over-valued. Forward EPS of $0.135 and a forward P/E near 119 reflect low near-term earnings power embedded in current price expectations. WMDST values the stock as over-valued given negative operating margins, negative free cash flow, and constrained liquidity despite recent revenue beats.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-03-31
REPORT DATE: 2026-04-30
NEXT REPORT DATE: 2026-07-30
CASH FLOW  Begin Period Cash Flow 26.6 M
 Operating Cash Flow -15.22 M
 Capital Expenditures -6.65 M
 Change In Working Capital -18.23 M
 Dividends Paid -2.41 M
 Cash Flow Delta -12.23 M
 End Period Cash Flow 14.4 M
 
INCOME STATEMENT REVENUE
 Total Revenue 154.4 M
 Forward Revenue -10.42 M
COSTS
 Cost Of Revenue 103.7 M
 Depreciation 17.8 M
 Depreciation and Amortization 17.8 M
 Research and Development
 Total Operating Expenses 173.6 M
PROFITABILITY
 Gross Profit 50.7 M
 EBITDA -2.53 M
 EBIT -20.36 M
 Operating Income -19.18 M
 Interest Income
 Interest Expense 2.6 M
 Net Interest Income -2.63 M
 Income Before Tax -22.99 M
 Tax Provision -7.64 M
 Tax Rate 33.2 %
 Net Income -15.35 M
 Net Income From Continuing Operations -15.35 M
EARNINGS
 EPS Estimate -0.54
 EPS Actual -0.51
 EPS Difference 0.03
 EPS Surprise 5.556 %
 Forward EPS 0.14
 
BALANCE SHEET ASSETS
 Total Assets 992.1 M
 Intangible Assets 75.0 M
 Net Tangible Assets 366.2 M
 Total Current Assets 50.4 M
 Cash and Short-Term Investments 11.2 M
 Cash 11.2 M
 Net Receivables 16.6 M
 Inventory
 Long-Term Investments 24.0 M
LIABILITIES
 Accounts Payable 31.7 M
 Short-Term Debt
 Total Current Liabilities 145.2 M
 Net Debt 162.8 M
 Total Debt 349.9 M
 Total Liabilities 550.9 M
EQUITY
 Total Equity 441.2 M
 Retained Earnings 250.8 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 14.36
 Shares Outstanding 30.714 M
 Revenue Per-Share 5.03
VALUATION
 Market Capitalization 534.3 M
 Enterprise Value 873.0 M
 Enterprise Multiple -345.449
Enterprise Multiple QoQ -951.589 %
Enterprise Multiple YoY 31.796 %
Enterprise Multiple IPRWA high: 108.592
median: 42.001
mean: 9.81
MCS: -345.449
low: -1159.536
 EV/R 5.654
CAPITAL STRUCTURE
 Asset To Equity 2.249
 Asset To Liability 1.801
 Debt To Capital 0.442
 Debt To Assets 0.353
Debt To Assets QoQ 6.659 %
Debt To Assets YoY -7.569 %
Debt To Assets IPRWA high: 0.84
MCS: 0.353
mean: 0.28
median: 0.231
low: 0.055
 Debt To Equity 0.793
Debt To Equity QoQ 8.131 %
Debt To Equity YoY -9.792 %
Debt To Equity IPRWA high: 7.846
MCS: 0.793
mean: 0.467
median: 0.436
low: -3.953
PRICE-BASED VALUATION
 Price To Book (P/B) 1.211
Price To Book QoQ 16.212 %
Price To Book YoY -1.736 %
Price To Book IPRWA high: 8.538
mean: 2.117
median: 1.643
MCS: 1.211
low: -9.866
 Price To Earnings (P/E) -34.109
Price To Earnings QoQ -141.66 %
Price To Earnings YoY 5.873 %
Price To Earnings IPRWA high: 2929.77
mean: 531.651
median: 65.442
MCS: -34.109
low: -464.304
 PE/G Ratio 0.093
 Price To Sales (P/S) 3.46
Price To Sales QoQ 40.475 %
Price To Sales YoY -5.458 %
Price To Sales IPRWA high: 44.101
mean: 12.449
median: 7.097
MCS: 3.46
low: 0.555
FORWARD MULTIPLES
Forward P/E 118.937
Forward PE/G -0.323
Forward P/S -51.251
EFFICIENCY OPERATIONAL
 Operating Leverage 70.95
ASSET & SALES
 Asset Turnover Ratio 0.154
Asset Turnover Ratio QoQ -19.714 %
Asset Turnover Ratio YoY 6.682 %
Asset Turnover Ratio IPRWA high: 0.283
MCS: 0.154
median: 0.124
mean: 0.112
low: 0.029
 Receivables Turnover 13.107
Receivables Turnover Ratio QoQ -2.863 %
Receivables Turnover Ratio YoY 10.808 %
Receivables Turnover Ratio IPRWA MCS: 13.107
high: 10.229
mean: 2.262
median: 1.71
low: 0.711
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO) 6.962
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA high: 134.4
median: 23.301
mean: 22.731
MCS: 0
low: -63.419
CAPITAL DEPLOYMENT
 Cash Conversion Ratio -1.629
 CapEx To Revenue -0.043
 CapEx To Depreciation -0.373
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 615.2 M
 Net Invested Capital 615.2 M
 Invested Capital 615.2 M
 Net Tangible Assets 366.2 M
 Net Working Capital -94.77 M
LIQUIDITY
 Cash Ratio 0.077
 Current Ratio 0.347
Current Ratio QoQ -22.964 %
Current Ratio YoY -17.015 %
Current Ratio IPRWA high: 2.493
mean: 0.798
median: 0.679
MCS: 0.347
low: 0.295
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA -138.465
 Cost Of Debt 0.676 %
 Interest Coverage Ratio -7.742
Interest Coverage Ratio QoQ -1571.875 %
Interest Coverage Ratio YoY 2.325 %
Interest Coverage Ratio IPRWA high: 8.118
median: 8.118
mean: 6.19
low: -3.881
MCS: -7.742
 Operating Cash Flow Ratio -0.138
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) 29.31
DIVIDENDS
 Dividend Coverage Ratio -6.371
 Dividend Payout Ratio -0.157
 Dividend Rate 0.08
 Dividend Yield 0.005
PERFORMANCE GROWTH
 Asset Growth Rate -2.215 %
 Revenue Growth -20.204 %
Revenue Growth QoQ 154.972 %
Revenue Growth YoY -3.795 %
Revenue Growth IPRWA high: 17.461 %
median: -3.129 %
mean: -12.478 %
MCS: -20.204 %
low: -65.293 %
 Earnings Growth -368.421 %
Earnings Growth QoQ 480.538 %
Earnings Growth YoY -80.609 %
Earnings Growth IPRWA high: 356.897 %
median: -3.681 %
mean: -28.221 %
low: -344.118 %
MCS: -368.421 %
MARGINS
 Gross Margin 32.857 %
Gross Margin QoQ -15.078 %
Gross Margin YoY 3.444 %
Gross Margin IPRWA high: 93.872 %
mean: 37.539 %
median: 36.821 %
MCS: 32.857 %
low: 9.627 %
 EBIT Margin -13.187 %
EBIT Margin QoQ -1771.356 %
EBIT Margin YoY -8.124 %
EBIT Margin IPRWA high: 17.722 %
median: 15.257 %
mean: 11.947 %
MCS: -13.187 %
low: -142.729 %
 Return On Sales (ROS) -12.422 %
Return On Sales QoQ -415.76 %
Return On Sales YoY -13.454 %
Return On Sales IPRWA high: 15.055 %
median: 15.055 %
mean: 10.566 %
MCS: -12.422 %
low: -107.787 %
CASH FLOW
 Free Cash Flow (FCF) -21.87 M
 Free Cash Flow Yield -4.093 %
Free Cash Flow Yield QoQ -173.908 %
Free Cash Flow Yield YoY -61.798 %
Free Cash Flow Yield IPRWA high: 2.766 %
median: 2.766 %
mean: 2.297 %
MCS: -4.093 %
low: -11.093 %
 Free Cash Growth -182.843 %
Free Cash Growth QoQ -505.561 %
Free Cash Growth YoY -41.963 %
Free Cash Growth IPRWA high: 182.816 %
MCS: -182.843 %
mean: -280.072 %
median: -316.901 %
low: -934.971 %
 Free Cash To Net Income 1.424
 Cash Flow Margin -12.941 %
 Cash Flow To Earnings 1.302
VALUE & RETURNS
 Economic Value Added 0.03
 Return On Assets (ROA) -1.53 %
Return On Assets QoQ -359.322 %
Return On Assets YoY -6.193 %
Return On Assets IPRWA high: 1.103 %
median: 1.103 %
mean: 0.744 %
MCS: -1.53 %
low: -9.466 %
 Return On Capital Employed (ROCE) -2.404 %
 Return On Equity (ROE) -0.035
Return On Equity QoQ -367.281 %
Return On Equity YoY -8.565 %
Return On Equity IPRWA high: 0.319
median: 0.021
mean: 0.01
MCS: -0.035
low: -0.962
 DuPont ROE -3.417 %
 Return On Invested Capital (ROIC) -2.21 %
Return On Invested Capital QoQ -1227.551 %
Return On Invested Capital YoY -4.659 %
Return On Invested Capital IPRWA high: 1.801 %
median: 1.801 %
mean: 1.452 %
MCS: -2.21 %
low: -4.028 %

Six-Week Outlook

Near-term momentum can extend given the MACD crossover, breakout above the 52-week high, and heavy volume, but MRO and a rising RSI increase the odds of a corrective pullback toward the $22.10 technical support area. If momentum sustains, expect consolidation above short-term averages; if momentum fades, price may re-test the 12–20 day EMA band and the SuperTrend lower near $22.13. Elevated ADX implies any move will show follow-through volume; traders should monitor MACD and RSI for a clear momentum reversal signal.

About The Marcus Corporation

The Marcus Corporation (NYSE:MCS) develops and manages a diverse portfolio of entertainment and hospitality properties across the United States. It operates a network of multiscreen movie theatres under well-known brands such as Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus. In addition to its entertainment ventures, the company owns and operates a selection of full-service hotels and resorts. Beyond ownership, The Marcus Corporation provides comprehensive hospitality management services, which encompass check-in, housekeeping, and maintenance for vacation ownership developments. The company’s expertise extends to managing condominium hotels under long-term contracts. Established in 1935, The Marcus Corporation maintains its headquarters in Milwaukee, Wisconsin, and continues to serve as a prominent player in both the entertainment and hospitality sectors.



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