SIX - Six Flags' Turnaround Hinges on Families
An amusement park that doesn't appeal to families is an amusement that probably won't survive. This was one of the problems that Six Flags (NYSE: SIX) faced when it brought in an outsider CEO to turn the company around. Families spend money -- on food, drinks, treats, games, and souvenirs. Tell your kids they can't have cotton candy and see how that goes.
Selim Bassoul, who has been leading Six Flags for less than a year, spent his career turning around struggling businesses at Middleby . Middleby would acquire businesses with strong but poorly managed assets and breathe new life into them, raising prices, investing in the products, and slashing unnecessary costs. He's taking the same playbook and applying it to Six Flags, and a central piece of the plan is to make Six Flags a no-brainer destination for families.
The market was not happy with Six Flags' second-quarter report. Attendance dropped 22% year over year, revenue was down 5%, and earnings per share plunged 35%. With inflation running hot and the U.S.economy kinda-sorta in a recession , you can't blame investors for cooling on Six Flags stock.
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Six Flags' Turnaround Hinges on Families