News Cedar Fair’s Financial Troubles

Login or Register to Hide This Ad

mtorange

Halloween Haunt and WinterFest Aficionado
Jul 26, 2014
225
438
63
CP Food Blog came across this article on Yahoo! regarding Cedar Fair’s recent financial troubles. Even though some of he article is heavy on economic and stock jargon, the video brings up some good points on how the chain could fix this problem. Some of these include discounts to closer Cedar Fair parks, email discounts for certain situations, and better advertising themselves as a chain rather than a bunch of different parks (which they’ve been trying to do a little for the 2019 announcement season with the poster teasers).

CP Food Blog brought up the idea of branding themselves like Six Flags: Cedar Fair’s Cedar Point, Cedar Fair’s Kings Dominion, etc. I don’t really like the last idea, but what do y’all think about these strategies?
 

Shane

ParkFans Founder
Silver Donor
Jun 2, 2011
2,739
4,661
113
Raleigh, NC
parkfans.net
This is something I really don't like about like about publicly traded companies. From an outsider's prospective it's cool to get to be able to see how they are doing on a quarter-by-quarter basis, but activist investors are only concerned about the near-term and aren't in it for the long-haul. You can't expect to have growth every quarter. You're going to hit a ceiling, drop some, then start growing again as long as your management team knows what they are doing and has the long-term health of the company as it's priorities. I'm annoyed that just because there is one quarter that's not stellar that everyone is crying foul. If this was something that was going on repeatedly that would be a whole different conversation.
 
Mar 9, 2010
96
191
33
Overall, from the conference call and just overall word of mouth, the chain isn't doing well this year compared to last year. This is tough news to swallow for certain investors who have seen year after year of growth. Especially given the line-up of new attractions they have this year.

I think the big overarching cloud right now is the performance through July 31. July was a very bad month for the chain. However, they have a lot of dropping before I think anyone should be worried. They make a lot of money even when they're down.
 

b.mac

MFW Volcano
May 14, 2011
2,817
3,018
113
King George, Virginia
I think the big overarching cloud right now is the performance through July 31. July was a very bad month for the chain. However, they have a lot of dropping before I think anyone should be worried. They make a lot of money even when they're down.
Biggest issue with the investors is they're beginning to expect results Quarter-over-Quarter like Six Flags has been doing. The investors want to know what Cedar Fair is doing in response to Six Flag's success.

It brings concern to attention with them when Six Flags and SEAS post positive second quarters while Cedar Fair reports a loss, blaming weather for the loss when Six Flags and SEAS have similar competition markets in their highlighted affected areas (Carowinds, KD, BGW, SFA, SFGAdv, Hershey, etc.).
 

Shane

ParkFans Founder
Silver Donor
Jun 2, 2011
2,739
4,661
113
Raleigh, NC
parkfans.net
Cedar Fair released a press release stating that their parks reported in record revenues this August. Over the five week period net revenues were $288 million (up 6%) compared to the same period of time in 2017, along with a 5% increase in attendance, a 1% increase in guest PerCap spending and 7% increase in "out-of-park revenues" which includes resorts. This is all great news, as the company experience some softer results over the first half of the year, but now the plan is to continue the momentum they have and finish the year strong as they look forward to the popular Halloween and Christmas holiday seasons ahead.
 

b.mac

MFW Volcano
May 14, 2011
2,817
3,018
113
King George, Virginia
Just keep in mind Kings Island, Cedar Point, and Kings Dominion were affected by storms on last year's labor day weekend and this year they rolled out very hard on Bring-A-Friend and Discount events like Dollar Days to bring in more guests this weekend.

It did work, but this kind of performance was expected considering how 3 parks had washed weekends last year.
 

b.mac

MFW Volcano
May 14, 2011
2,817
3,018
113
King George, Virginia
Can't be arsed to link the Final Quarter results. Here's the jist of it:

  • Year over Year attendance increase of 189,000
  • Small increase in revenue
  • Small increase in expenses blamed on operations and increased wages (along with the expenses of adding Winterfest at KD and WoF)
  • Knott's breaking 6 million guests (not stated if whole property or just amusement park, banking former)
  • Cedar Fair will be slowing their major capital investments, and focus more on family attractions. Annual Capital Expenditure still expected to be in the $140-150 million range annually.
So despite what you have seen, what you have heard, etc. This year was overall a flop for Cedar Fair. 4 major attractions added, 2 extended calendar years, and all they have to show for it is a 200k attendance increase? You can't keep blaming the weather for that, and investors are smart in pegging corporate's ass to the wall with any concerns they have over the company's future.
 
Login or Register to Hide This Ad