AMC No Shows and MaccieD Masks
AMC could be the last theatre stock standing if Cineworld and Cineplex bite the dust, both still in a legal wrangle with each other with no revenues coming in. AMC has a cash buffer to last it until August, when its targets cinema reopenings with masks mandatory for viewers.
This is big news for investors in movie streamers that have taken over since coronavirus, principally Netflix, as well as movie makers that are sitting on tapes ready to premiere but are burning cash as no theatres are open. Disney is a streamer and a movie maker!
The big question is, when theatres return, who turns up?
McDonald’s has been reopening for some time, but similar to AMC, it will make masks compulsory from the beginning of August. There’s a mask mandate in 30 of 50 states as cases continue to climb, but investors worry how many customers McDonald’s is barring here.
The truth is that most people don’t wear masks, and MacDonald’s seeks to capture most people in its net. We could see all out brawls over mask-wearing as franchises are divided over whether to enforce laws in their policies. How do you eat and drink with a mask, again?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.