Marcus Corporation (NYSE: MCS) shares surged 5.35% on November 1, 2024, following the company's strong third-quarter earnings report that exceeded market expectations. The company reported record consolidated revenue of $233 million, marking an 11% increase year-over-year, driven by robust performance across its theater and hotel divisions.

The theater division emerged as a standout performer, with revenue increasing 13.6% to $143.8 million compared to the prior year. Notably, this marked the first time the division exceeded pre-pandemic revenue and profitability levels, highlighting the industry's recovery from the COVID-19 impact. Comparable theater admission revenue rose 9.5%, while concession, food, and beverage revenue jumped nearly 14%, driven by favorable pricing changes and an increase in transactions.

The hotel division also contributed significantly, posting an 8.1% increase in revenue to $88.7 million. The division benefited substantially from the Republican National Convention held in Milwaukee, which drove strong revenue growth and profitability during the quarter. Marcus Corporation's hotels continued to outperform the industry, with a 9.8% increase in RevPAR for owned hotels compared to the previous year.

In addition to the strong operational performance, Marcus Corporation made strategic moves to enhance shareholder value. The company successfully repurchased $13.5 million of its convertible senior notes, simplifying its capital structure and eliminating potential future dilution. Furthermore, Marcus Corporation resumed share buybacks, acquiring approximately 693,000 shares for $9.7 million.

"This quarter marks significant progress, and we're clearly building momentum heading into 2025," said Gregory Marcus, Chairman, President, and Chief Executive Officer. "Our teams executed extremely well, delivering record results in both divisions and demonstrating the long-term potential for future events in our markets."