AMC Stock Continues to be Headed for Disaster. Sell Now.

Core Viewpoint - AMC Entertainment is facing severe challenges due to declining consumer spending and a struggling movie theater sector, leading to a likely disaster for shareholders [1] Group 1: Financial Performance - AMC's Q2 attendance fell to 50,000, a 25% year-over-year decline, compared to a 2% decline in Q1 [2] - Q2 food and beverage sales dropped to $367 million from $488 million in Q2 2023 [3] - Overall Q2 sales decreased by 24% year-over-year to $1.03 billion, with an operating loss of $47.4 million compared to an operating income of $84.8 million in the previous year [3] Group 2: Industry Context - The U.S. box office revenue is projected to decline by 10% year-over-year to $3.6 billion for the summer of 2024, despite the release of popular films [4] - The CEO's optimistic outlook for revenue growth in the second half of 2024 is tempered by the term "sizeable," indicating limited improvement [5] Group 3: Debt and Cash Flow - AMC has a significant debt of $2.89 billion due in 2026, with only $770 million in cash at the end of the last quarter [6] - The company burned $235 million in cash over the year ending in June and owes $143.4 million by the end of 2025 [6] Group 4: Future Outlook - The company may face bankruptcy preparations next year or may need to sell more stock to meet its 2026 debt obligations [7] - The high debt load and poor profitability outlook make it unlikely for banks to provide additional funding [6][7]