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1. Company Snapshot

1.a. Company Description

Cedar Fair, L.P. owns and operates amusement and water parks, and complementary resort facilities in the United States and Canada.Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas.The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort.


As of December 31, 2021, the company operated 13 amusement parks.The company was founded in 1983 and is headquartered in Sandusky, Ohio.

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1.b. Last Insights on FUN

Cedar Fair, L.P. merger with Six Flags Entertainment Corporation bolstered the latter's growth prospects. The combined entity benefits from increased scale and diversified offerings. Jana Partners, an activist investor, urges Six Flags to explore a sale, which sparked buyout speculation. The company's turnaround effort aims to cut costs and improve business. With a "Hold" rating from 14 brokerages, investors await the 2026 first quarter results announcement on May 7. (Source: MarketBeat, Reuters)

1.c. Company Highlights

2. Six Flags' 2025 Earnings: A Mixed Bag with Room for Improvement

Six Flags Entertainment Corporation reported a mixed financial performance for the fourth quarter and full year 2025. Revenue for the quarter was $650 million, and $3.1 billion for the full year, while adjusted EBITDA came in at $165 million and $792 million, respectively. However, earnings per share (EPS) was a disappointment, coming in at -$0.91, significantly worse than the estimated -$0.31. The company's attendance was impacted by the decision not to operate winter holiday events at four parks, resulting in 9.3 million guests in the fourth quarter and 47.4 million for the full year.

Publication Date: Feb -22

📋 Highlights
  • Adjusted EBITDA: Full-year adjusted EBITDA reached $792 million, with Q4 at $165 million, within guidance despite holiday event absences.
  • Attendance Impact: Q4 attendance dropped to 9.3 million due to no winter holiday events at four parks, but full-year attendance hit 47.4 million.
  • Revenue and Spending: Q4 revenue was $650 million, with strong in-park spending and $3.1 billion full-year revenue; deferred revenues rose 1% from advanced ticket sales.
  • Margin Improvements: Workforce deployment, automation, and efficiency projects aim to enhance margins, with $400–425 million CapEx prioritized for ROI-driven investments.
  • Cost Synergies: 100% of merger cost synergies achieved by 2025, with continued focus on labor productivity and standardization to offset inflationary pressures.

Operational Challenges and Opportunities

President and CEO, John Reilly, highlighted the company's strengths, including its dominant position in the regional theme park industry and significant earnings potential. However, he also acknowledged the need to improve efficiency and execution, citing examples from his park visits. The company is working to address these issues through initiatives like workforce deployment, efficiency projects, and automation. As John Reilly noted, "the consumer isn't the issue; we can improve execution and address missteps."

Margin Expansion and Cost Optimization

The company is focused on improving margins through various initiatives, including workforce deployment and efficiency projects. CFO Brian Witherow mentioned that the company has effectively delivered on 100% of the original gross cost synergies from the merger by the end of '25 and is continuing to look for more meaningful opportunities to offset cost pressures and inflationary pressures. The company's efforts to optimize costs and improve margins are expected to drive future growth.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 3.9%. With a current P/S Ratio of 0.6 and EV/EBITDA of -2.26, the stock appears to be undervalued. However, the company's ROE and ROIC are significantly negative, indicating a need for improvement in profitability. As the company works to address its operational challenges and improve margins, investors will be watching to see if it can deliver on its growth prospects.

Outlook and Guidance

The company expects a slight increase in operating days, up to 1% sans the Sunset Park in Bowie, Maryland, and CapEx is expected to be in the $400 million to $425 million range. With a focus on efficiency and automation, the company is well-positioned to drive future growth and improve profitability. As John Reilly stated, "we're not here to dwell in the past, but we're taking lessons from 2025 to address missteps and opportunities."

3. NewsRoom

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Six Flags to Announce 2026 First Quarter Results on May 7; Earnings Call Starts at 8 AM EDT

Mar -30

Source: businesswire.com

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Why Six Flags Stock Fell Today

Mar -28

Source: fool.com

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Six Flags appoints new chair amid call for sale

Mar -25

Source: reuters.com

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Six Flags Entertainment Appoints Richard Haddrill as Executive Chairman of the Board of Directors

Mar -25

Source: businesswire.com

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What Active REIT Managers Bought And Sold In Q4 2025

Mar -21

Source: seekingalpha.com

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Why Six Flags Stock Popped This Week

Mar -20

Source: fool.com

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Six Flags Entertainment Corporation (NYSE:FUN) Given Average Rating of “Hold” by Brokerages

Mar -20

Source: defenseworld.net

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Why Six Flags Entertainment Stock Just Popped

Mar -17

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.80%)

6. Segments

Admissions

Expected Growth: 4.83%

Cedar Fair's 4.83% growth in admissions is driven by increased consumer spending on experiential activities, successful implementation of dynamic pricing strategies, and investments in new attractions and amenities. Additionally, the company's focus on enhancing the guest experience through technology and marketing initiatives has contributed to the growth.

Food, Merchandise and Games

Expected Growth: 4.83%

Cedar Fair's 4.83% growth in Food, Merchandise, and Games is driven by increased in-park spending, strategic pricing initiatives, and enhanced guest experiences. Additionally, investments in new attractions and technologies, such as mobile ordering and cashless payments, have improved operational efficiency and convenience, leading to higher sales and profitability.

Accommodations, Extra-charge Products and Other

Expected Growth: 4.65%

Cedar Fair's 4.65% growth is driven by Accommodations (increased hotel bookings and premium pricing), Extra-charge Products (upselling of Fast Lane and VIP experiences), and Other (growth in sponsorship and advertising revenue, as well as increased sales of season passes and all-season dining plans).

7. Detailed Products

Amusement Park Admission

General admission tickets to Cedar Fair's amusement parks, including Cedar Point, Knott's Berry Farm, and Kings Island.

Season Passes

Annual passes that grant access to Cedar Fair's amusement parks for the entire operating season.

Food and Beverage

Various dining options and treats available within Cedar Fair's amusement parks, such as burgers, hot dogs, and funnel cakes.

Games and Merchandise

Arcade games, skill games, and souvenir shops offering Cedar Fair-themed merchandise, such as t-shirts and toys.

Accommodations

On-site hotels, resorts, and campgrounds offering convenient lodging options for guests visiting Cedar Fair's amusement parks.

Special Events

Seasonal events and festivals, such as Halloween-themed Haunt and winter festivities like WinterFest.

Group Outings

Customizable packages for groups, including corporate events, birthday parties, and youth groups.

8. Cedar Fair, L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cedar Fair, L.P. operates in a niche market with a unique product offering, which reduces the threat of substitutes. However, the rise of virtual and augmented reality experiences could potentially substitute traditional theme park experiences.

Bargaining Power Of Customers

Cedar Fair, L.P. operates in a market with a high level of customer loyalty, and customers have limited bargaining power due to the unique nature of the company's products and services.

Bargaining Power Of Suppliers

Cedar Fair, L.P. relies on a diverse range of suppliers for goods and services, which reduces the bargaining power of individual suppliers. However, the company may still be vulnerable to supply chain disruptions and price increases.

Threat Of New Entrants

The theme park industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which reduces the threat of new entrants.

Intensity Of Rivalry

The theme park industry is highly competitive, with several major players competing for market share. Cedar Fair, L.P. faces intense rivalry from companies such as Disney, Universal, and Six Flags.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 134.59%
Debt Cost 8.32%
Equity Weight -34.59%
Equity Cost 11.06%
WACC 7.37%
Leverage -389.08%

11. Quality Control: Cedar Fair, L.P. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Acushnet

A-Score: 5.2/10

Value: 3.1

Growth: 5.8

Quality: 5.7

Yield: 2.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Mattel

A-Score: 4.8/10

Value: 6.1

Growth: 5.1

Quality: 6.5

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
YETI

A-Score: 4.8/10

Value: 4.2

Growth: 8.0

Quality: 7.5

Yield: 0.0

Momentum: 5.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
United Parks & Resorts

A-Score: 4.4/10

Value: 8.0

Growth: 7.0

Quality: 6.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Six Flags

A-Score: 4.1/10

Value: 7.8

Growth: 2.2

Quality: 4.7

Yield: 1.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Cedar Fair

A-Score: 2.8/10

Value: 7.8

Growth: 2.2

Quality: 2.6

Yield: 1.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.77$

Current Price

16.77$

Potential

-0.00%

Expected Cash-Flows