Movie lovers may be turned off by what Hollywood is producing — but they are gorging themselves on their concession-stand’s popcorn and candy.
Regal Entertainment Group, the largest publicly traded theater group with 6,600 screens spread across 37 states, said concession sales jumped 5.5 percent per person in the fourth quarter — while attendance in their 528 locations dropped 7.6 percent.
David Ownby, the company’s CFO, told investors, the jump in revenue was mainly caused by the hungry audiences — not price increases.
Ownby noted that Regal would react to the trend by introducing an expanded food menu at a broader number of cinemas this year.
Barton Crockett, at Lazard Capital, said: “People ate more popcorn, and they have some new items, like Angus dogs at some theaters.”
Concession-stand revenue was among the few highlights for Regal.
Admissions revenue in the quarter fell 8.3 percent per screen, thanks to the drop in attendance and a 2.3 percent decline in the average ticket price, the company said.
While Manhattan moviegoers are forking over as much as $6 for a small popcorn, according to the Regal in Union Square Manhattan, analysts estimate popcorn costs cinemas around 5 cents a bucket.
Regal CEO Amy Miles revealed that the type of movie shown affects concession revenue. For instance, studios bunched all family titles around the Thanksgiving period, and they naturally attract families who spend more compared with audiences attending adult movies.