Along the same lines, a day at an amusement park like Six Flags (SIX) might lose some of its appeal. Not only is entry and enjoyment the park itself a discretionary purchase that could easily be cut as consumers have less cash in their pockets, but the price of driving there is also more expensive.
Six Flags has been climbing for most of the year — even in the face of similar concerns like the payroll tax hike and sequestration — to the point that it hit an all-time high back in May. Even cooler weather and heavy rain were supposed to weigh the stock down, and failed to do so.
In fact, Six Flags just reported record revenue for the first six months of the year — a whopping $451 million that translated to a 15% climb in earnings.
But the spike in gasoline prices could end up being the straw that breaks the camel’s back — or one that at least weighs on it in the near-term. Plus, Six Flags lacks the diversification of a rival like Disney (DIS) to easily weather small storms.