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Will AMC's Troubles Affect Its Landlord, EPR Properties?

MC has been losing money since 2019. Even before the pandemic, ticket sales had been declining attendance. Higher prices for tickets and concession items drove revenue and hid the fact that fewer people were in seats, munching on popcorn and watching the latest action flick.

Earlier this year, theater operator Cineworld Group PLC $CINEWORLD GROUP(CNNWF.US)$ , which owns the Regal chain of movie theaters, filed for Chapter 11 bankruptcy in a Texas court. The filing, which allows a company to operate while restructuring its debt, was an attempt to slash its $5 billion debt burden.

AMC is in a different position, but it still presents a risk to shareholders and business partners.

However, because it became a meme stock, AMC could raise cash in the public markets. As a result, it’s been able to save off bankruptcy, but ultimately it's facing a familiar quandary: Expenses must be less than revenue to run a business efficiently. That's tough for companies operating capital-intensive brick-and-mortar locations in an industry on the decline. $AMC Entertainment(AMC.US)$
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