AMC Entertainment Holdings (AMC) saw its shares surge 9.49% on Friday, closing at $1.73 after the company reported its best U.S. attendance for a Memorial Day weekend in 2026. The stock hit an intraday high of $1.79, with trading volume reaching 42.3 million shares, well above its daily average. The rally outpaced rivals Cinemark (CNK), which rose 2.75% to $28.00, and IMAX (IMAX), which gained 1.12% to $39.68.
The catalyst for the move was AMC's announcement that over 5 million moviegoers visited its AMC and ODEON Cinemas during the Thursday-to-Monday Memorial Day period, marking a record for 2026. CEO Adam Aron hailed the weekend as demonstrating 'the power of the big screen experience.' Disney's 'The Mandalorian and Grogu' led the box office with an estimated $102 million in North America and $165 million globally, according to Reuters.
Despite the upbeat attendance figures, the overall domestic box office for the four-day holiday weekend was estimated at about $211 million by the Associated Press, significantly below last year's record of $330 million. Comscore's Paul Dergarabedian noted an unusual second-weekend rise for the film 'Obsession,' attributing it to a social-media-driven 'FOMO factor.'
AMC's rally comes amid a packed June film slate that could sustain momentum. Upcoming releases include 'Masters of the Universe' and 'Scary Movie' on June 5, 'Toy Story 5' on June 19, and 'Supergirl' on June 26, according to Fandango. These titles will test whether the Memorial Day bump was a one-off or the start of a sustained recovery in theater attendance.
The stock's move also drew attention back to AMC's first-quarter earnings, reported on May 5. The company posted revenue of $1.045 billion, a net loss of $117.1 million, and adjusted EBITDA of $38.3 million. Adjusted EBITDA, a measure of operating profit before certain expenses, reflects AMC's ongoing efforts to manage costs. Aron stated that 'the box office is back' and expressed confidence that revenue would continue to rise through 2026.
However, AMC continues to face significant balance sheet risks. In its latest quarterly filing, the company warned that its current cash burn rate is unsustainable and that it would need revenue to return to at least pre-COVID-19 levels to achieve consistent positive operating cash flow. The filing also noted that forecasting future liquidity remains challenging due to unpredictable film releases, production schedules, and box office results.
AMC's cheap stock price and meme-stock legacy make it prone to outsized moves when sentiment shifts. While the Memorial Day weekend provided a positive catalyst, the company's fundamental challenges remain. Investors will be watching June's box office closely to see if the momentum can be sustained, or if Friday's pop proves fleeting.
