How Cedar Fair’s Amusement Parks Compare By Revenue and Attendance

In today’s post, I take a closer look at how the different parks in the Cedar Fair chain contribute to the company’s overall revenue and EBITDA. As both a fan and member of the amusement park/theme park industry, I am always searching for ways to learn more about the many incredible companies that operate parks all over the world. Although I enjoy putting on my “fan hat” from time-to-time to read  speculation and theories about new rides, I find the most interesting insights come from looking at each business holistically. At the end of the day every park is a business, a fun business, but still a business that is best understood by analyzing it through such a lenses.

There are very few resources to turn to for coverage and data about the inner workings of the industry. The Global Attractions and Attendance Report compiled by the Themed Entertainment Association (TEA) and AECOM is one of the best resources available. Unfortunately, even that report relies on unofficial guesstimates and is considered by many in the industry, including myself, to be directionally, but not completely accurate. The most accurate sources of information are the earnings calls, SEC filings and investor presentations that the major public companies in the amusement park industry release on a quarterly basis. Unfortunately, public companies only release tidbits of financial information that typically focus on the overall company and not specific parks or areas of the business. Large conglomerates such as Disney and Comcast provide less data as the theme park business only accounts for one part of their overall companies. On rare occasions, companies will provide more insightful and complete information about how their business operates at the park level.

Cedar Fair 2017 Map of Parks from FunForward Presentation

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Spend Money To Make Money: CapEx of Cedar Fair and Six Flags

You Have To Spend Money To Make Money

The saying “You have to spend money to make money” has been shown to be true over and over again in the amusement park industry. A common question that is posed by both analysts, fans, financial advisors and shareholders is what new ride is coming next to the parks. Fans are excited to experience brand new rides and attractions while analysts, financial advisors and shareholders are worried about how much companies are spending on capital expenditures (capex) every year. Unlike companies in some industries, it’s impossible for an amusement park or theme park to be able to thrive without continued reinvestment. Some companies in other industries, for example In-N-Out, can continue to grow for years without changing their offerings, but that strategy simply doesn’t work in the amusement industry where guests need new motivations to turn off Netflix and head to the park. Let’s take a look at how much the two leading regional amusement park chains, Cedar Fair and Six Flags, have been spending annually.

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