On March 11, AMC Entertainment (NYSE:AMC) announced that it will be making its signature branded popcorn available in Publix and Kroger (NYSE:KR) grocery stores across the nation and online at Amazon.com. Unfortunately, this news is not helping AMC stock pop higher today.
Shares are down nearly 2% today and down just about 6% for the past month.
Let’s dive in and examine what investors need to know about this retail announcement — and what it means for AMC moving forward.
What’s Happening with AMC Stock
It has truly been an awful year for AMC stock. Currently trading below $4.30, shares are down nearly 30% in the year to date.
So why isn’t the popcorn announcement helping boost AMC stock today? The movie theater chain shared that it is doubling the number of stores that will carry its signature popcorn. It also announced that consumers will now have the option to purchase individual or six packs of its popcorn.
Simply put, its retail efforts with popcorn are too small to matter to the market.
That isn’t to say that AMC products don’t matter to customers. As Rolling Stone reports, the Sandworm Popcorn Bucket commemorating the release of Dune 2, has been a big hit with moviegoers. But the bigger picture is that the company faces challenges getting consumers back into theaters with streaming on the rise.
Multiple Wall Street analysts have reduced their AMC price targets in recent days, suggesting darker days ahead. As InvestorPlace contributor Muslim Farooque notes:
“The market [has] responded unfavorably to AMC’s strategic moves, evidenced by a 30% stock price drop following the announcement to sell up to 40 million new shares in September 2023. Additionally, AMC’s efforts to reduce these challenges and its debt through debt-for-equity swaps have resulted in more shareholder dilution, increasing analyst skepticism over its future. Consequently, quant analysts assign a ‘strong sell,’ rating to AMC stock, underscoring its challenging recovery path.”
Even AMC’s diehard retail investor base seems to be losing faith in the company. An InvestorPlace interview with Tom Bruni of Stocktwits found that the platform’s data shows sentiment toward AMC is declining.
Fade to Black
Since March 2023, AMC shares have fallen almost 90%, painting a truly discouraging picture of a company struggling to survive. It will take more than popcorn to turn things around.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
