Cedar Fair (NYSE: FUN) There is no financial year. Although lack of financial resources, attendance is less for attendance than the theme park, which has been translated into weak revenue in 2018.
There is not a wide variety of businesses that can save the Cedar Mela from the financial leverage or adverse weather trends. It is not Disney. However, investors willing to accept the stock some additional recession can buy solid.
Let's look at some of the good reasons for this Master Ltd partnership that gives 7% more yield.
Retrieving from a hard start
Start its Solid Operating Results in 2018. Of course, in the first week of the summer theme park season, the company is getting harder. Attendance fell by 3 per cent. But trends have improved. Park's visits have gone down to less than one percent in the third quarter, with broken weather, a total hurricane, especially in September, two parks were closed on a major weekend.
Other business lines are very good and the cost of in-park guests has increased by 5% in the last quarter. Non-Park Revenue of Cedar Park is growing. The price rise is rising in households with higher prices.
The company plans to sell around $ 1.32 billion this year. This is lower than last year. Revenue generated as a result of 2016 must be reduced as a result of 2016. However, this management predicts between $ 460 million and $ 470 million.
At the same time, the stock market is considering a high price. Today, Cedar Fair is 16 times less revenue, which is equal to P / E 22 of the market. This year's stock has fallen by about 20 per cent. This decline increased its dividend by more than 7 percent.
Considering the trend of healthy cash flow, there will be less risk of eliminating a sharp economic downturn. In fact, management increased the supply by 4%, compatible with long term plan to increase it every year at its speed.
Long term plans
Depending on the diversification of the Cedar Mela, investors can expect permanent results in the long run. Two large enterprises are targeted for the growing hotel and in-park food and beverage revenue.
CEO Richard Zimmerman and his team are opening more entertainment entertainment opportunities. It helps to better interact with better weather conditions. On the basis of this, more than 1000 acres of underdeveloped lands are being used to expand the inauguration of the cedar fairs. New rides, new rides, attractions or extra hotel capabilities.
This trend on diversity can be explained by the fact that in the past 20 years at the age of 19 the sales of the Cedar Fair have increased and could be explained in the summer of 2018. Its heaviest time combined with climate sensitivity can be more self-enhanced than many dividends. But investors who make upside down will have a stake in a firm business.