AMC Entertainment Holdings Inc., boosted by the success of its branded popcorn sales, is planning to launch branded premium gourmet candy, according to CEO Adam Aron.
The movie-theater chain and meme-stock darling reported better-than-expected second-quarter results early Tuesday. Speaking during a conference call to discuss the results after the close of markets, Aron provided an update on the company’s branded popcorn push and its efforts to launch new products.
AMC
AMC,
announced a partnership with Walmart Inc.
WMT,
earlier this year, with the popcorn initially available at hundreds of the retail giant’s stores ahead of the Academy Awards on March 12. The following month, the deal was expanded to encompass 2,600 Walmart stores.
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The AMC-branded ready-to-eat and microwave-at-home popcorn has been “flying off the shelves” at Walmart stores and from the retailer’s website, Aron said during the conference call.
AMC is looking to expand the popcorn partnership to other grocery chains, according to Aron, who said that it could become a $100 million-a-year revenue source for AMC.
Buoyed by the success of the branded popcorn, AMC is looking to launch premium branded candy at its theaters later this year or in early 2024, Aron said. “Premium AMC candies, coming to theaters, are now in the works,” he said. “We believe we will be successful with the candy lines as we have been successful with the popcorn lines.”
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This includes chocolate candy and gummies, according to the CEO, who was sampling some of the wares during the earnings call. “These chocolate-covered pretzels are to die for,” he said. Chocolate products from Hershey Co.
HSY,
and Nestle
NESN,
will still be sold at AMC theaters, according to Aron.
In addition to discussing new revenue streams for AMC, the CEO also reiterated his recent warning that AMC faces liquidity challenges. “In the short term, AMC has some serious liquidity issues to solve,” he said, adding that the company’s leadership team is “highly able” in liquidity management. “We have every confidence that we will continue to execute,” Aron added.
As of June 30, the company’s cash position was $435.3 million, excluding restricted cash of $22.9 million. AMC’s available liquidity was $643.4 million.
Related: AMC set to expand its branded popcorn sales to 2,600 Walmart stores
AMC’s stock ended Tuesday’s session down 0.6%, outpacing the S&P 500 index’s
SPX
decline of 0.4%, and fell 1% in extended trading. AMC’s Preferred Equity
APE,
units ended Tuesday’s session down 2.3% and rose 1.5% in extended trading.
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