Movie Theater Companies Could Face Long Term Impacts from Social Distancing

AMC and Cinemark have claimed a substantial amount of debt with no clear opening date in sight. Equity Research Analyst, Michael Pachter, explains despite AMC’s large amount of cash on hand, their rent expense will severely hurt the company if landlords do not provide assistance. He appeared on Cheddar to compare the longevity of AMC and their competitor, Cinemark. Pachter discusses how Cinemark holds more cash as well as an agreement with their landlord to postpone rent.