The amusement park industry is one of the largest yet least talked about segments of the entertainment sector.
It features a slew of companies that are raking in billions of dollars in yearly revenue. So, are there any amusement park stocks to invest in? Let’s check it out.
Best Amusement Park Stocks To Add
The Walt Disney Company (NYSE: DIS)
The Walt Disney Company, founded in 1923, is a leading diversified media and entertainment conglomerate headquartered in Burbank, California.
The company operates through several divisions, but mainly Disney Media and Entertainment Distribution; and Disney Parks, Experiences, and Products.
These divisions cover studio entertainment, parks and resorts, media networks, direct-to-consumer, and the international division.
However, our primary focus is the parks and resorts division under Disney Parks, Experiences, and Products. Disney is the largest operator of theme parks across the globe.
The parks and resorts division is responsible for the operation and management of the company’s theme parks and resorts around the globe.
It operates 14 theme parks across four continents, including Walt Disney World Resort in Florida, Disneyland Paris, and the Hong Kong Disneyland Resort.
In addition to theme parks, the division also oversees the Disney Cruise Line, Disney Vacation Club, and Disney’s Aulani Resort & Spa in Hawaii.
Disney also has a strong brand and extensive intellectual property portfolio, which provides the company with a competitive advantage.
In 2022, Disney reported revenue of $82.72 billion, and this year, experts estimate that figure to cross the $90 billion mark. As a result, DIS reports year-over-year revenue growth of 15.66%.
Its whole enterprise is valued at $236.52 billion with a market cap of $183.89 billion, operating on a debt of $48.38 billion.
As of February 2023, DIS sold for roughly $100 on NYSE. It does not currently pay dividends.
Six Flags Entertainment Corporation (NYSE: SIX)
Next on the list is a company that earns acclaim as the world’s largest regional theme park operator, with 27 parks across North America.
Formerly known as Six Flags, Inc., Six Flags Entertainment Corporation was founded in 1961 and has its headquarters in Arlington, Texas.
The company offers various thrill rides, family attractions, and entertainment. It generates revenue primarily from admissions, food and beverage sales, merchandise sales, and sponsorship agreements.
Six Flags Entertainment Corporation’s strength is its loyal customer base. It offers season passes and memberships that provide recurring revenue streams.
The company is currently focused on expanding its footprint and enhancing the guest experience.
To do this, it seeks investments in new attractions and technology while partnering with leading brands to develop themed attractions and events.
A look into Six Flags Entertainment Corporation’s financials will show that it made a revenue of $1.36 billion in 2022.
Potential investors will also find that the company is on course to make an estimated revenue of $1.48 billion in 2023.
The company has a market cap of $2.48 billion and had a share price of about $26 as of February 2023. It does not currently pay dividends.
Cedar Fair, L.P. (NYSE: FUN)
Like Six Flags, Cedar Fair, L.P. is a publicly-traded partnership that operates regional amusement parks and water parks in North America.
Cedar Fair owns and operates 13 amusement parks, two outdoor water parks, one indoor water park, and five hotels across North America.
The company’s parks are in key regional markets such as California, Texas, Ohio, North Carolina, and Pennsylvania.
The company recently announced a $200 million annual capital spend across its parks which is great news for fans and investors alike.
This capital injection will see Cedar Fair’s top five parks get new rides and attractions worth up to $20 million every five years.
Its mid-tier parks are not left out and will offer new attractions worth up to $15 million every five years.
Cedar Fair is one of the few amusement park stocks that pay a dividend. It records a dividend yield of 1.94% and an annual payout of $0.90 at a ratio of 11.01%.
In 2022, the company generated a revenue of $1.82 billion. It has year-over-year revenue growth of 35.81%.
Experts value Cedar’s whole enterprise at $4.67 billion with a market cap of $2.41 billion. As of early March 2023, its stocks sold for roughly $46.5 on NYSE.
Comcast Corporation (NASDAQ: CMCSA)
Comcast Corporation is a leading global media and technology company headquartered in Philadelphia, Pennsylvania, USA.
The company operates through four main divisions: cable communications, media studios, theme parks, and Sky.
Comcast has an extensive collection of assets and a monopoly of services in certain regions. It’s highly profitable, has a high market cap, and is a dividend stock, which makes it appealing to potential investors.
CMCSA records a gross profit margin of 68.53% and a net income margin of 4.42%.
The company is valued at $259.44 billion with a market cap of $156.33 billion, operating with a total debt of $106.77 billion.
In 2022, it generated a revenue of $121.43 billion.
Comcast Corporation pays shareholders a dividend. It has a dividend yield of 3.13% and an annual payout of $1.16 at a ratio of 29.59%.
SeaWorld Entertainment, Inc. (NYSE: SEAS)
Renowned theme park and entertainment company SeaWorld Entertainment, Inc is another outstanding amusement park stock.
The company is based in Orlando, Florida, and was founded in 1959. It operates a portfolio of marine-themed parks, attractions, and entertainment products.
SeaWorld has 12 theme parks across the United States, including SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Water Country USA, Adventure Island, and Sesame Place.
The company’s parks offer various marine animal exhibits, attractions, shows, and rides, including roller coasters and water rides.
It is also home to over 80,000 animals and is committed to animal welfare and conservation.
Earlier this year, the company made new high-level hires as it focuses on expanding its footprint in international markets, with plans to open new parks in Asia and the Middle East.
It established a new Chief Transformation Officer position. It appointed two seasoned park leaders to the Chief Parks Operation Officer role, one for Florida parks and the other for all non-Florida parks.
SeaWorld Entertainment, Inc made a revenue of $1.73 billion in 2022. It has year-over-year revenue growth of 15.13%.
The company also shows profitability, with its gross profit margin at 50.87% and net income margin at 16.82%.
It does not, however, currently pay dividends.
Compagnie des Alpes SA (OTCPK: CLPIF)
Over in Europe, French-based leisure facilities company Compagnie des Alpes SA is another good stock option in the amusement park industry.
Compagnie des Alpes SA is a leading European leisure and ski resort company established in 1980. It operates through Ski Areas, Leisure Parks, and Holdings and Supports divisions.
The company operates over 20 ski resorts, including some of the most famous in the Alps. It also has amusement parks and other leisure attractions across Europe.
Compagnie des Alpes’ portfolio of amusement parks includes well-known brands such as Parc Asterix, Futuroscope, and Walibi.
It also manages water parks, indoor family entertainment centers, and other leisure destinations.
Experts value the company’s entire enterprise at $1.40 billion with a market cap of $770.65 million.
In 2022, it made a revenue of $939.28 million and recorded year-over-year growth of 298.44%.
Compagnie des Alpes SA does not currently pay a dividend.
Are Amusement Park Stocks a Good Investment?
Amusement and theme park stocks are suitable investments due to their potential to generate high returns and their resilience during difficult economic times.
People are still willing to spend money on entertainment, and amusement parks can often maintain their customer base regardless of the economic climate.
For instance, when the economy nose-dived in 2008, Disney maintained solid attendance levels across their resorts by offering discounts to attendees.
Furthermore, the industry benefits from reinvestments in attractions, infrastructure, and other amenities, which can result in increased revenues.
Amusement parks also tend to have strong dividend yields, making them an attractive option for income-focused investors.
The industry has a history of success and can be an excellent option for investors looking for long-term growth potential.
Investing in amusement park stocks can be a great way to diversify a portfolio and reap the benefits of the industry’s steady returns.
FAQs
What Is The Largest Amusement Park Company?
Walt Disney Parks and Resorts Worldwide is the largest amusement park company in the world based on its revenue and attendance metrics.
What Makes An Amusement Park Successful?
A major hallmark of a successful theme park is having attractions visitors want to utilize repeatedly and will keep coming back for.
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