After looking at Cineworld yesterday, I decided to look at the third largest movie theatre chain in the world, Cinemark.
Just like the competitors, Cinemark is recovering from the pandemic with rising threats from streaming. But unlike the competitors, they didn't have to rely on acquisitions and "having a meme stock status" to grow.
But they did take a lot of debt to survive the pandemic, and today they have in front of them, a Wall of Debt.
They are going to hit that wall hard in 2025 if they don't do anything.
What they can do is refinance the debt as they did for the senior notes due in 2022 and 2023, converting them into notes due in 2026 and 2028, respectively but at higher interest rates.
Even though, compared to competitors, Cinemark looks cheap but because of this Wall of Debt, I would prefer to stay away from it.