FUN Stock Forecast & Price Target

The positive outlook on Six Flags Entertainment Corp is supported by a 10% year-over-year increase in food and beverage transactions per guest, along with an 8% growth in demand for high-margin extra-charge products, indicating strong operational performance driven by volume rather than pricing. Additionally, the outperformance from the top 70% of the park portfolio, reflecting a 5% attendance growth and margin improvements in the third quarter, suggests robust demand and effective management strategies at these facilities. Enhanced management efficiency, potential cost synergies, and opportunities for asset divestiture are expected to further bolster EBITDA growth, with projections indicating a significant increase in 2027 EBITDA that could position the company favorably for long-term success.

Six Flags Entertainment Corp has experienced a negative shift in financial performance, with September attendance declining by 5% year-over-year, attributed to a timing issue in advertising spending and management's operational missteps. Additionally, the company has revised its FY25 EBITDA targets downward by approximately 10% for the second consecutive quarter, reflecting underperformance in October and a challenging sales environment. Furthermore, a notable decrease in admissions per capita revenue, down 8% year-over-year in the third quarter, highlights the impact of ineffective promotional strategies and a less favorable mix of lower-ticket yield guests.