AMC Is Up 83% in 2026 and Cinemark Is Up 68%: Take Profits, or Hold On for the Ride?

Movie theater stocks have become one of the standout trades of the year, with AMC Entertainment (NYSE:AMC) shares leading the group. AMC shares are up 83% year to date (YTD) to $2.86, the largest gain among the biggest U.S. theater-linked names.

Also, Cinemark Holdings (NYSE:CNK) shares are up 68% YTD to $38.72. At the same time, IMAX (NYSE:IMAX) shares are up 38% YTD to $51.11, trailing both theater circuits.

As the largest U.S. theater circuit, AMC carries the heaviest debt load in the group. Cinemark runs a smaller and less leveraged circuit, while IMAX licenses its projection systems to theater owners and takes a share of box office receipts.

Refinancing Pushes AMC Debt Into the Next Decade

In early October, AMC completed a refinancing that moved almost all of its remaining debt maturities into the next decade. Earlier in the year, the company refinanced debt, converted exchangeable notes into equity and raised fresh equity capital.

Management has stated that lower leverage is expected to trigger reduced interest rates on most of its debt. AMC’s lower interest expense, as its chief executive has noted, also reduces the box office level the chain needs to break even.

AMC declared it expects this year to be the strongest year for theatrical exhibition since the pandemic. It cited a film slate that includes Spider-Man: Brand New Day, Dune: Part Three and Avengers: Doomsday.

Premium large-format auditoriums, including IMAX screens, give AMC a way to charge more per ticket on its biggest releases. The company reports results across U.S. Markets and International Markets, and its international arm operates primarily in Europe under the Odeon brand. On top of films, AMC launched Arena One at AMC, a live concert initiative that brings another source of traffic into its theaters.

Theater Stocks Leave the Funds Behind

For a broad-market gauge, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 12% YTD. That trails the gains in both AMC shares and Cinemark shares.

Though it holds neither AMC nor IMAX, the Invesco Leisure and Entertainment ETF (NYSEARCA:PEJ) is up 6% YTD and offers a read on out-of-home leisure spending. The fund’s largest positions lean toward travel, lodging and dining companies.

Because AMC shares and Cinemark shares have run so far ahead of both of these funds, the rally suggests a possible recovery in theater attendance. IMAX shares trail both while still outpacing the funds.

Holding Versus Taking Profits on AMC

The case for holding AMC shares rests on lower interest costs reaching its results as attendance recovers. AMC has also described its business as having heavy operating leverage, where rising revenue raises profits at a faster clip.

However, the refinancing left a large debt load in place, the core case for taking profits. The company’s share sales have also helped repair its balance sheet, which has diluted existing holders, and AMC’s stockholders’ equity is still negative.

Cinemark gives investors a less leveraged way to own a theater circuit, with locations across the U.S. and Latin America and brands such as Cinemark XD and Cinemark Movie Club. IMAX splits its business into Content Solutions, which remasters films into IMAX formats, and Technology Products and Services, which sells, leases and maintains theater systems.

Debt Load Shapes AMC’s Next Leg

Gains this large can reverse quickly for a heavily indebted company, and knowing when to step off a run matters as much as catching it (we covered both sides of that question in a free handbook on riding manias). A rally this steep already prices in much of the recovery story.

Any decline in attendance or interest savings could weigh on AMC shares. Position sizes should stay small until AMC’s debt reduction completes.

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