Will Theme Parks Open This Summer?
There's a burning question weighing on investors and enthusiasts alike when it comes to theme parks: Will there be a summer season for the industry? Regional amusement park operators Six Flags (NYSE: SIX) and Cedar Fair (NYSE: FUN) don't have much of a window to make 2020 happen for them. If they can't open their gated attractions in the next couple of months, the year is as good as gone. Most of their parks operate seasonally, with the summer months accounting for the lion's share of their revenue and more than all of their operating profit.
Larger theme park operators Disney (NYSE: DIS), Universal Studios parent Comcast (NASDAQ: CMCSA), and SeaWorld Entertainment (NYSE: SEAS) operate year-round theme parks, but that only means that they've been feeling the pinch since the industry shut down across the country in mid-March. COVID-19 trends have been gradually improving on many fronts, but no one feels confident enough to let theme parks unlock their turnstiles to let the masses scratch their thrill-seeking itch. There's a lot to lose financially for the five publicly traded players if we don't see an operating season this summer, but there's obviously a lot more to lose if rolling back social distancing results in a renewed spike in cases and fatalities.
Image source: Six Flags.
Source Fool.com
