AMC Theatres is reopening Cinemark’s former lease as AMC Evanston 12 in Chicago.
AMC Entertainment showed much strength after it announced it was refinancing its debt and bringing former Frito-Lay executive Ellen Copaken on board.
Now the country’s largest theatre chain is expanding its acquisition strategy to further strengthen the company.
How will this affect AMC’s shareholders?
Welcome to Franknez.com – AMC Theatres continues to flex. I’m going to go over what’s happening today and what it means for the investor.
Let’s dive right into it!
AMC Acquires Cinemark Lease
Originally operating as Century 12 Evanston, the theatre is reopening later this year as AMC Evanston 12 in Evanston, IL.
AMC theatres reached an agreement with GW Properties to take over and reopen AMC Evanston 12 in the Chicago area.
Plans include reviving the 12 screens on the north side of the theater and repurposing the other six screens as an entertainment, fitness or recreational venue, such as rock climbing according to Mitch Goltz, the developer.
Earlier, AMC reached separate lease agreements with property developer Unibail-Rodamco-Westfield to take on the leases of two more former Arclight cinemas in San Diego and the Washington, D.C. area.
In December, AMC announced that it was taking over the leases of two theaters in Los Angeles and Chicago previously operated by Pacific Theatres and ArcLight Cinemas.
Other acquisitions: The Grove and Americana Theatres
AMC Theatres announced it would acquire the famous Grove and Americana theatres in Los Angeles last summer.
That acquisition announcement was one of the first strong fundamental moves we saw AMC Theatres take.
Now AMC is taking over Cinemark leases to dominate in its sector.
The city of Evanston, IL is excited to get their movie theatre back, calling it a trophy asset.
The developer estimates renovations will be ready by the first quarter of 2022.
What does this mean for shareholders?
Recently we’ve seen AMC Entertainment stock begin to surge again.
AMC theatres was up more than 20% the second week of February.
The movie theatre stock was up +9.75% on Tuesday February 15th.
I anticipate AMC stock will continue to surge in the coming weeks as the company gets ready to announce 2021’s Q4 earnings call.
Related: What can we expect from AMC’s next earnings call?
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