Regal Plans $250M Upgrade for Movie Theaters
Regal Cinemas, the second-largest movie theater chain in the U.S., has announced plans to enhance its locations with a $250 million capital raise. The investment will be used to upgrade its 425 theaters across the country, including the addition of luxury recliners and other amenities.
Regal's parent company, Cineworld, which emerged from Chapter 11 bankruptcy last year after filing in September 2022, is backing this initiative. Thomas Song, Regal's chief financial officer who joined the company in March, stated, “Regal has been executing on its business plan with results through the first quarter that exceeded our expectations, providing one of the strongest balance sheets in the business. As we invest in providing the best moviegoing experience, our customers will enjoy in-theater improvements coupled with a very compelling movie slate through the end of the year.”
Song encouraged landlords to reach out if they are interested in having their locations included in the upgrade plan. This move aligns Regal with other exhibitors like AMC Theatres, Cinemark, and Marcus Theatres, which have been enhancing their theaters for years to attract moviegoers with a more premium experience. Boutique chains such as Alamo Drafthouse, recently acquired by Sony Pictures in June, have also set a trend by offering in-theater dining and other amenities.
After closing multiple locations and screens last year during its parent company's bankruptcy proceedings, Regal is now aiming to catch up with its competitors. Recent box office successes like “Inside Out 2,” “Despicable Me 4,” and “Bad Boys: Ride or Die” have reignited moviegoing, with the domestic box office for July 5-7 reaching $156 million. However, the industry still faces challenges with fewer major releases due to strike-related and pandemic production delays.
According to Comscore, the year-to-date domestic box office stands at $3.9 billion, down about 17 percent from 2023. Cinema chain analyst Eric Handler from Roth MKM projected that box office receipts will be down by a modest 6 percent year-over-year for the quarter, with a forecast of down months in July and August before a positive turn in September.
