Is AMC Entertainment Staging a Monster Comeback?

AMC Entertainment (NYSE: AMC) isn’t exactly the comeback kid just yet, but you might want to keep it on your radar.

Over the past month, shares have quietly climbed 14.96%, a surprising twist for a stock that’s still down more than 39% from last year and worse from its meme stock mania highs, even after adjusting for its 1-for-10 reverse split.

On the surface, the fundamentals still look messy. AMC hasn’t posted an annual profit since last decade. Top line sales declined in four of the last five quarters so why the optimism?

As it turns out, moviegoers are finally returning and this time, not just for the popcorn.

Key Points

• Ticket sales are up 25% year-over-year, with blockbuster releases driving a projected Q2 revenue surge.

• AMC’s long-term debt is shrinking and premium offerings are boosting margins despite a high share count.

• AMC and profitable rival Cinemark both trade at a 2x EV-to-revenue multiple, hinting at potential for AMC to catch up.

Theaters Are Filling Back Up

Here’s something most investors may not realize, domestic box office sales are currently tracking 25% higher than they were at this time last year. That momentum is being driven by a stronger film slate, including 2025’s surprise breakout hit, Sinners.

Analysts are expecting a 20-30% year-over-year jump in AMC’s second-quarter revenue, its best showing in nearly two years. And forecasts for 2025 are trending upward, with Wall Street calling for 7% top-line growth. That may actually be conservative.

Looking ahead, AMC’s fortunes are tied closely to what’s coming next to the big screen. Thankfully, the second half of 2025 is loaded: Avatar: Fire and Ash alongside Jurassic World: Rebirth, plus a Superman reboot is on deck.

Not Just a Meme Stock Anymore?

Beneath the surface, AMC is making moves that are likely to eventually shift the narrative from meme stock to real company with strong fundamentals.

Long-term debt, once viewed as a ticking time bomb, has now shrunk for half a decade consecutively. And AMC is leaning into premium experiences like IMAX, Dolby Cinema, and recliner seating to boost revenue per visitor. These upgrades aren’t just flashy but are helping drive higher margins at a time when ticket volumes are still normalizing.

Here’s a stat that might surprise you: AMC and Cinemark (NYSE: CNK), its leaner, more profitable rival, are currently trading at the same enterprise value-to-revenue multiple of 2x. That’s despite Cinemark posting steady profits for the past two years and even restarting its dividend this year.

The market may be quietly signaling that AMC has room to catch up, if it can stick the landing.

Will Investors Buy the Sequel?

AMC’s path back to investor favor won’t be quick or easy. But here’s what the bulls are watching, box office strength is improving, blockbuster titles are stacked through year-end, and AMC’s operational base is far leaner than it was during the pandemic’s darkest days.

Critically, studios have pivoted back to theatrical-first releases, abandoning the “streaming-only” experiments of 2020–2021. That’s an industry tailwind in AMC’s favor. And according to the National Association of Theatre Owners, 85% of moviegoers still say they prefer watching big movies on the big screen.

AMC doesn’t need to be perfect but it does need to stop being a punchline. If management can keep costs in check and ride this next wave of Hollywood hits, the company may finally move from survival mode to comeback mode. Per-share profits might be elusive in the near term, but with top-line growth returning and debt declining, sentiment could shift fast.

For investors willing to buy a turnaround before it’s obvious, AMC might be more than just a box office curiosity. It might be Act One of a very different story.