Movie theatre chain AMC Entertainment Holdings Inc. (NYSE: AMC) said it has struck deals to reopen two of the highest-grossing movie theaters in the Los Angeles area.
What Happened: AMC Entertainment said it has reached long-term agreement terms with Caruso, a privately-held real estate company, to take over the leases of the 14-screen cinema at the Grove Theatre in Los Angeles and the 18-screen Americana at Brand Theatre located in Glendale.
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AMC expects to reopen the two formerly Pacific Theatres locations in August. The theatres have been closed for more than a year due to the COVID-19 pandemic.
In 2018, The Grove Theatre was the second-highest-grossing movie theatre and The Americana at Brand Theatre was the fifth-highest-grossing cinema in the Los Angeles area.
See Also: It’s Not All Hype, AMC Seeing Recovery In Foot Traffic: Data Analytics Firm
Why It Matters: The move is part of AMC Entertainment’s efforts to expand its footprint in the U.S. The company managed to avoid bankruptcy amid the pandemic and reopened 98% of its locations in March.
In May, AMC CEO Adam Aron expressed optimism about the company’s prospects, noting that the movie theatre chain was able to attract about 7 million U.S. and international moviegoers to its theatres in the first quarter.
Shares of AMC and other stonks, or stocks favored by retail investors, have seen volatility in recent days.
AMC Entertainment’s year-to-date returns stand at a whopping 1,533% and its valuation shot past fellow stonk GameStop Corp. (NYSE: GME) in June amid increased interest from retail investors.
Price Action: AMC Entertainment shares closed almost 1% lower in Monday’s regular trading session at $34.62, but rose almost 0.9% in the after-hours session to $34.92.
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