FUN Stock Forecast & Price Target

Six Flags Entertainment Corp. benefits from a significant increase in year-over-year food and beverage transactions per guest, which rose by 10%, alongside strong demand for high-margin products, contributing to expectations of robust EBITDA growth. The company's parks, particularly the outperforming subset that represents around 70% of year-to-date EBITDA, reported a positive 5% attendance growth in the third quarter, along with margin improvements, indicating strong operational performance. Additionally, the expectation of synergies from the combined entity, along with the potential to divest non-core assets to reduce leverage and enhance strategic focus, further supports a positive outlook for long-term investors.

Six Flags Entertainment Corp. faces significant challenges as evidenced by a 5% year-over-year decline in September attendance, which was impacted by a shift in advertising timing and operational missteps. Management has lowered its fiscal year 2025 EBITDA guidance for the second consecutive quarter by approximately 10%, reflecting underperformance in October and ongoing difficulties in attracting visitors. Furthermore, a drop of 8% year-over-year in admissions per capita revenue during the third quarter highlights the ineffectiveness of promotional strategies, coupled with an adverse guest mix that further undermines financial performance.