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CoastersRZ

Six Flags Stock Downgraded

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https://www.cnbc.com/2020/01/10/things-are-so-bad-for-six-flags-it-got-downgraded-twice-by-the-same-analyst-in-less-than-12-hours.html

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The company also said it saw weaker-than-expected sales of season passes in memberships in the U.S., and would report a total revenue dip of $8 million to $10 million for the fourth quarter.

Hopefully this is just a trend at Six Flags and not an indication of how things are going at Cedar Fair.  Definitely glad that Six Flags did not go through with the reported purchase/merger of Cedar Fair.

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20 minutes ago, Ben43065 said:

Fun fact Cedar Fair now has a higher market cap then Six Flags.

I like that, FUN fact! :lol:

@CoastersRZ don't forget this in that article as well. And I think every CF pass holder should be happy that deal did not go through.

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That declining performance in the U.S. has more to do with Six Flags than theme park industry as a whole, according to Wells Fargo.

 

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I think a lot of it also has to do with the new attractions that they are adding at the Six Flags parks.  I mean, yes, West Coast Racers looks good.  But when was the last time that Six Flags St. Louis got a sizeable new investment?  

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I think this could just be a blip in the radar for SIX.  Remember when Q3 numbers were released for Cedar Fair back in 2018 and many thought it foretold the end of Kings Island and Cedar Fair as we know it (after all, KI failed miserably LOL).  Cedar Fair reacted nimbly and the company ended up having a great Q4 and a great 2019.  Hopefully SIX will be nimble as well.  If not....I'd like to see some parks added into the fold, specifically in year round markets.  ;)

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I'm kind of surprised to see weaker pass sales with how cheap they are. I paid around $150 for my 2020 Gold Pass with Premium Dining. It's almost ridiculous that $150 gets you into all Six Flags parks with free parking, 2 meals and a snack every visit and a souvenir bottle with free refills all season, multiple bring a friend free tickets (including a free friend ticket just for buying the pass) and other smaller perks. That's the Great Adventure price, other Six Flags parks charge even less than that.

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6 hours ago, CoastersRZ said:

I think a lot of it also has to do with the new attractions that they are adding at the Six Flags parks.  I mean, yes, West Coast Racers looks good.  But when was the last time that Six Flags St. Louis got a sizeable new investment?  

Justice League was $15M in 2015, but yeah coasterwise 2013 was a used 24 year old boomerang that doesn't count. 

I have no idea about HitP attendance recently, but if that is softening despite running a decent selection of coasters that would not be a good trend for the industry. 

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Much of the stock price adjustment seems triggered by the default of Six Flags' partner in China, leaving those projects in doubt.

The drop in domestic pass & membership revenue is surprising. The gold level monthly membership is cheap enough ($6-$9/month depending on park) that many just don't bother to cancel, regardless of how often they visit. Evidently the Planet Fitness model has its limits. Unlike Cedar Fair, they don't have much additional room to discount to drive sales.

As a park guest, I'd love to see Six Flags take a more Cedar Fair-esque approach of investing in the guest experience while gradually increasing the pass/membership cost. While every SIX park gets a new attraction every year (unless you're SFMM in 2020), investments in areas like food and general park improvements have been lagging behind FUN for several seasons.

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21 hours ago, malem said:

 

As a park guest, I'd love to see Six Flags take a more Cedar Fair-esque approach of investing in the guest experience while gradually increasing the pass/membership cost. While every SIX park gets a new attraction every year (unless you're SFMM in 2020), investments in areas like food and general park improvements have been lagging behind FUN for several seasons.

I'm pretty sure all of that will come across as a foreign language to SIX management. 

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