Marcus (MCS) risk factors, FY2024 10-K

Operational Risks

1. 01The lack of both the quantity and audience appeal of motion pictures may adversely affect our financial results
2. 02Our financial results may be adversely impacted by unique factors affecting the theatre exhibition industry, such as the shrinking video release window, the increasing piracy of feature films and the increasing use of alternative film distribution channels and other competing forms of entertainment
3. 03A deterioration in relationships with film distributors could adversely affect our ability to obtain commercially successful films or increase our costs to obtain such films
4. 04The relative industry supply of available rooms at comparable lodging facilities may adversely affect our financial results
5. 05Each of our business segments and properties experience ongoing intense competition
6. 06Changes in the availability of and the cost of labor could adversely affect our business
7. 07Supply chain disruptions may negatively impact our operating results
8. 08Adverse weather conditions, particularly during the winter in the Midwest and in our other markets, may adversely affect our financial results
9. 09Our results are seasonal, resulting in unpredictable and varied quarterly results
10. 10Our properties are subject to risks relating to acts of God, terrorist activity and war and any such event may adversely affect our financial results
11. 11If the amount of sales made through third-party internet travel intermediaries increases significantly, consumer loyalty to our hotels could decrease and our revenues could fall

Financial Risks

1. 12Adverse economic conditions in our markets may adversely affect our financial results
2. 13Our businesses are heavily capital intensive and preopening and start-up costs, increasing depreciation expenses and impairment charges may adversely affect our financial results
3. 14the extent we capitalize our capital expenditures, our depreciation expenses may increase, thereby adversely affecting our results of operations. Several of our hotels are scheduled for significant reinvestment in the next one to two years
4. 15Adverse economic conditions, including disruptions in the financial markets, may adversely affect our ability to obtain financing on reasonable and acceptable terms, if at all, and impact our ability to achieve certain of our growth objectives
5. 16We may need additional financing to execute on our current or future business strategies, including to develop new or enhance existing products and services, acquire businesses and technologies, or otherwise to respond to competitive pressures
6. 17Our ability to pay dividends or repurchase common stock may be limited or otherwise restricted
7. 18Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to repay our debt

Strategic Risks

1. 19We may not achieve the expected benefits and performance of our strategic initiatives and acquisitions
2. 20Our ability to identify suitable properties to acquire, develop and manage will directly impact our ability to achieve certain of our growth objectives
3. 21Our ability to identify suitable joint venture partners or raise investment funds to acquire, develop and manage hotels and resorts will directly impact our ability to achieve certain of our growth objectives
4. 22Investing through partnerships or joint ventures decreases our ability to manage risk

Legal, Regulatory and Compliance Risks

1. 23Recalls of food products and associated costs could adversely affect our reputation and financial condition
2. 24We are subject to substantial government regulation, which could entail significant cost
3. 25We are subject to complex taxation and could be subject to changes in our tax rates, the adoption of new tax legislation or exposure to additional tax liabilities

General Risks

1. 26Our business and operations could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of our business strategy and impact our stock price
2. 27Our stock price may be volatile, which could result in securities class action litigation against us
3. 28Certain provisions of our articles of incorporation and bylaws and of Wisconsin law could prevent a takeover that shareholders consider favorable and could also reduce the market price of our stock