Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The maths of running a movie theatre are simple. Ticket sales cover all your costs and the profit you make is on the hugely expensive high margin junk food, sweets and teeth rotting drinks you flog. But when audiences slump that means fewer tickets so costs are not covered and then tubs of ice cream sold so one struggles overall to cover costs. That brings us to Cineworld (CINE).
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