Six Flags stock drops 12% after sales barely budge in most important quarter
Fun fact... Six Flags' name is actually inspired by the real 6 flags that have flown over its home state of Texas. Less fun fact: Founded in 1961, Six Flags claims that it's the world's largest "regional" theme park (cut out the "regional" and it's #7 on the list). This week, Six Flags shared its earnings from a major moment:
- Big year: It's aiming for a 10th consecutive year of record sales.
- Biggest quarter: 40% of its sales come during the 3rd quarter — July through September — when school's out and parents realize camp doesn't cover every single summer day.
Must be this high for investors to be happy... Six Flags shares plummeted 12% after announcing that 14M visitors showed up, waited in lines, and then waited in more lines last quarter. That's just 3% growth in Six Flags attendees since last year, and revenues only inched up 1%.
This isn’t an industry problem — it’s a Six Flags problem... Disney's theme park revenues surged 7% last quarter — that's driven by splurge-worthy new attractions based on Star Wars and Avengers. Earth's #2 theme park, Universal Studios, just whipped up Harry Potter land and Jurassic World sections too. Their character ecosystems make them true theme parks — Six Flags is still a roller coaster park with 35-second-long thrills.