Popcorn Profits Aren't Enough

Hi, today we explore: (1) How AMC Theatres Makes Its Money, (2) Why Bali is introducing a tourist tax and (3) The rise of "retail shrink". TOGETHER WITH Today's Topics Hello! It's that late August feeling... the US Open has just kicked off, college football is back, and Starbucks is already selling pumpkin spice lattes (yes, that's earlier than usual). Today we're exploring: - Popcorn profits: How AMC Theatres makes its money. - Tourist tension: Bali is the latest hotspot looking to mitigate the impact of tourism. - Stealing attention: "Shrink" is the latest hot-button issue in retail. Have feedback for us? Just hit reply — we'd love to hear from you! [Read this on the web instead]( There’s been much to celebrate for movie fans recently. The box office is basking in the post-Barbenheimer glow, and yesterday’s [National Cinema Day]( only added to festivities, as more than 3,000 theaters across the US — nearly 75% of the nation’s cinemas — offered tickets for as little as $4. For the country’s largest cinema chain, however, the mood hasn't been as joyous. Popcorn profits Shares in AMC Theatres fell ~14% on Friday as the company’s preferred equity units converted into common stock — freeing up the company to [sell more shares]( to new investors in future. The recent slide compounds what has been a miserable year for the company. AMC has now shed 64% of its market value in 2023 and shares in the company are down 97% since their peak in June 2021, when the chain found itself at the center of meme-stock mania. AMC operates more than 900 theaters, but even at that scale profits aren’t coming easily, as the chain booked a $23m operating loss for the first six months of 2023, which might be hard to fathom for anyone used to buying popcorn or other food and drinks at the cinema. Indeed, the company raked in more than $817m in food and drink sales, reporting costs of just $153m associated with that revenue — a whopping 81% margin. Unfortunately, that margin vanished pretty quickly, as rent and other operating expenses tallied more than $2bn — a precarious position for a company with more than $9bn of debt hanging over it. Bad influencers If you’re heading to Bali to realize your Instagram influencer dreams of sipping cocktails, sampling acai bowls, and inspiring gut-wrenching envy in your followers, you’ll have to cough up 150,000 rupiah (~$10) on arrival, as the island cracks down on [misbehaving tourists](. Bali’s beautiful weather, rich heritage, stunning beaches, and local cuisine all combine to make it a must-go for millions of travelers — and visitors to the Indonesian province had been rising every year before travel restrictions, with a record 6.3 million international tourists flocking to experience the island life in 2019. Tourist tension The rise of social media has meant that one viral video can be all it takes to send hundreds, or even thousands, of tourists descending on a newfound beauty spot. In June, the Balinese government proposed [new laws]( to ban visitors from climbing its mountains, touching holy trees, and swearing in public, as Bali — like [Venice]( and [Hawaii]( — joins a growing list of hotspots that are turning to tourist taxes and restrictions to mitigate the negative impacts of excessive tourism. The Himalayan kingdom of Bhutan is perhaps the most extreme example, charging travelers $200 per day to visit — a rate that, even after it [halves in September]( will remain the highest tourist tax in the world. [Sponsored by Pure Green]( Diet fads come and go — but superfood-based nutrition is evergreen. Case in point: [Pure Green Franchise]( has been connecting Americans with superfoods since its first juice bar opening in 2014. Now, it has 100+ locations across the U.S and is on track to hit 1000. So, to support its exponential growth, [Pure Green]( has just opened a new equity crowdfunding round. What’s fresh about Pure Green? As noted by Forbes, Pure Green’s [smart franchise model]( makes it scalable — and its store economics are off the charts for the industry: - $1M per month in system-wide revenue* - Top-grossing store revenue of nearly $1.5M* - Average store profit of $519k* Since the previous round in 2020, Pure Green’s valuation has increased almost 3x. You have just under a month to become a stakeholder in today’s fastest-growing juice bar franchise — [invest from $150 to get started](. [Invest in Pure Green Franchise today]( The big shrink Top executives at some of America’s largest retailers have found themselves repeating each other’s soundbites over the last couple of weeks, as they [increasingly talk]( about “shrink”. For those unfamiliar with the jargon, retail shrink is a broad term used for the issue of missing inventory, and was referenced by execs from Dick’s Sporting Goods, Dollar Tree, Macy’s, Foot Locker, Home Depot, and Walmart, all within the last 14 days. Some have [slammed]( the discussions, noting that the euphemism often obscures a bigger issue at play in the US retail industry — theft. Stealing focus Foot Locker and Dick’s Sporting Goods suffered more than most after their shrink-referencing reports, with shares in each company plummeting 33% and 24%, respectively, after the pair laid out how theft has contributed to weaker earnings in [recent months](. Rising thefts at Walmart and Target could suggest that lower-income consumers more vulnerable to inflation are feeling the pinch, although Dick’s CEO said that the impact of “organized" retail crime was significantly larger than expected. To combat shoplifting, retailers are increasingly sealing higher-priced products in [locked cases]( and rolling out [anti-theft tech](. More Data • Michael Jordan is officially the richest basketball player of all time, with Bloomberg estimating the retired sports star is worth ~$3.5 billion after recently selling his Charlotte Hornets [majority stake](. • Juice bar chain [Pure Green Franchise]( generates over $1M per month in system-wide revenue, and they’re looking for investors to help fuel the next stage of growth. Their latest crowdfunding campaign is now open — [invest today]( • Short films: over 2,400 performers have joined or rejoined Cameo, a platform where celebrities send fans paid video messages, since the actors’ strikes started in July, up 137% [from June](. • A Russian company has bought 7 breweries for less than the price of a single bottle of beer, after Heineken sold its entire business in the heavily-sanctioned country [for just €1](. **This is sponsored content. Optimize the way you learn data science. Explore thousands of [Brilliant’s]( quick, visual, hands-on lessons that break fundamental concepts down into core building blocks that just click. [Try it free for 30 days]( Hi-Viz • Not remotely interested: just 28% of employees who work from home full-time feel connected to their company’s [mission and purpose](. • Charting the fact that (almost) anything you can do, AI [can do better](. • MrBeast has won Creator of the Year at the [Streamy Awards]( — check out our first ever deep dive on the [YouTuber's growing media empire](. *Disclosure: Based on item 19 in the 2023 Pure Green Franchise FDD for the year of 2022. Thanks for reading. See you on Wednesday! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi%2C%0A%0AI%20like%20the%20newsletters%2C%20but%20I%20had%20a%20thought%20for%20you...) or want to [sponsor]( this newsletter? Not a subscriber? Sign up for free below. [Subscribe]( Copyright © 2023 CHARTR LIMITED, All rights reserved. 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