The common theme emerging is that theme parks may have a rough go of it this summer. I am not so sure..
Check out this video, the jist is that while Six Flags (SIX), Busch Gardens (BUD) and Cedar Fair (FUN) may suffer, Disney (DIS) ought to sail through unscathed.
Some empirical evidence may just suggest that may not be so true. A recent trip to Dunkin Donuts revealed the Six Flags summer coupons. A promotion of some type between the two companies in the Northeast has been a regular thing for the past few years.
In past years, coupons could be had all spring and even into the summer. Yesterday’s visit revealed only a few left. Of course I had to inquire and was told that they could not keep them in stock. Now, the price of the coupons with the ticket was $29.99 each so this was not a give away type thing and is in the same ballpark as past promotions.
The “coffee jockey” or “barista” (whatever we are supposed to call them) told me people have been coming in and asking for them this year, unlike past years.
It is an odd situation. Higher gas prices may just mean less “long distance”t most folks are not traveling that far for a Six Flags anyway. If their general audience comes in from 200 miles or so, then an additional $1 per gallon in gas for most folks is only another $10 on the travel bill. If you offset that with admission savings, it is a wash.
Do I think Six in a good investment? Not really, they just carry way too much debt and some very smart people are selling. I do think other operator may get knocked down a bit too far and offer a short term opportunity.
Since people seem to be clamoring for the ticket coupons, this may be the way they plan to have fun this summer, rather than a week at the shore.
Disclosure (“none” means no position):None
