Cinemark (NYSE:CNK) is seeing a drop to CNK stock on Monday despite no new news spreading about the movie theater company.
So what exactly is CNK stock taking a dive today? It looks like the decline for Cinemark is related to a news release from rival movie theater company Regal Cinemas. The company is planning to temporarily close down its theaters.
According to the Regal Cinemas news release, the company is facing a lack of interest form customers that make it impossible to continue business right now. Due to this, it’s closing down all of its 536 theaters in the U.S.
Regal Cinemas attributes the closure to the novel coronavirus and movie companies. The theater chain says that a lack of major movies is keeping customers from showing up at its theaters. Without these releases, the company says it can’t justify remaining open at this time.
Mooky Greidinger, CEO of Regal Entertainment parent company Cineworld, said this in the news release.
“Despite our work, positive feedback from our customers and the fact that there has been no evidence to date linking any COVID cases with cinemas, we have not been given a route to reopen in New York, although other indoor activities – like indoor dining, bowling and casinos were already allowed. The prolonged closures have had a detrimental impact on the release slate for the rest of the year, and, in turn, our ability to supply our customers with the lineup of blockbusters they’ve come to expect from us.”
CNK stock was down 16.1% as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.