AMC Stock Alert: AMC announces record food sales
The stock market tried to push higher on Monday and so did AMC Entertainment (NYSE:CMA). At one point in the session, AMC stock was down almost 4%. The shares, however, closed the day up 2%.
Some of today’s weaknesses could have been related more broadly to technology and more specifically to GameStop (NYSE:EMG). Shortly after opening, the tech was under more selling pressure than the overall market. Meanwhile, GME was down about 5% at one point. For what it’s worth, GME stock closed down around 4%.
There is always a correlation between some of these actions. However, AMC stock is finding bullish momentum due to its own catalysts.
Specifically, today’s action came after CEO Adam Aron tweeted good news this morning. Aron noted new record sales for the company:
“AMC moviegoers continue to eat and drink well. Two weeks ago, we set an all-time record, with the highest weekly ‘food and beverage revenue per patron’ (FBRPP) of 103 years of AMC history. On March 24, 25, and 26, we again set a new record, for the highest FBRPP weekend ever. Wow!”
AMC Stock could use a boost
This news is good for AMC stock. The company has worked hard to bring customers back to its theaters. He also looked for alternative sources of income. For example, AMC recently expanded the “availability of its retail popcorn line” in partnership with walmart (NYSE:WMT).
At the time of the deal, Aron added, “With the launch of AMC Theatres’ new line of Microwave and Ready-to-Eat Popcorn, AMC is once again delivering on a promise to our moviegoers and fans. investors.”
However, it looks like AMC stock will need more than popcorn and strong food sales to boost the stock price. While the stock is up 12% from the recent low, the stock is still more than 45% below the February high.
There has been a lot of volatility around AMC shares after the drama with its proposed stock split and conversion of AMC Entertainment Preferred Stock (NYSE:MONKEY), commonly referred to as APE stock. The issues surrounding this situation appear to have undermined AMC’s momentum.
Regardless of the outcome, I would expect this name to remain rather volatile in the spotlight, given its history.
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As of the date of publication, Bret Kenwell held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.