Pricey Popcorn

The Friday File: During 1H23, AMC Theaters grossed $2.3 billion. Ticket sales generated $1.3 billion, other categories including advertising, auditorium rental, arcade games, etc. generated $200 million, and food and beverage spawned $817 million. Amazingly, food and beverage costs were $153 million, that’s a gross profit margin of 82% and a 434% markup. By contrast, film exhibition costs were $629 million generating a mere 52% margin, and a 106% markup.