Shares of AMC and Cineworld are soaring in after-hours trading as the movie theater chains are set to reopen locations nationwide in time for the release of Warner Brother's upcoming film "Tenet" this weekend.
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|AMC||AMC ENTERTAINMENT HOLDINGS INC||3.06||+0.73||+31.33%|
|CNNWF||CINEWORLD GROUP PLC||0.925||+0.04||+5.11%|
AMC Theaters, whose shares have surged more than 9% in after-hours trading Tuesday, announced it will welcome moviegoers back to 70% of its theaters by Sept. 4.
The vast majority of the approximately 420 locations will reopen on Sept. 3, the same day as the release of "Tenet." In addition, guests can enjoy other new summer titles including "The New Mutants," "Unhinged," "Words on Bathroom Walls" and "The Personal History of David Copperfield."
AMC will also offer guests an array of $5 food and beverage treats, including regular popcorn, regular Coca-Cola Freestyle drinks and KidsPacks, through the end of October, while AMC Stubs members will earn double points on all ticket and food & drink purchases.
The following day, AMC expects its first California theatres to reopen, when it resumes operations at seven theatres in and around San Diego. AMC plans to make announcements about additional markets in California, New Jersey and other areas of the country in the coming weeks, once theatres are authorized to open by state and local officials.
AMC reopened the doors of some of its theaters on August 20, selling 15-cent tickets to celebrate 100 years of operation and to kick off its return after being shuttered by the coronavirus pandemic.
AMC's CEO and president Adam Aron said in Tuesday's press release that the first two weekends of operation "exceeded our expectations in terms of guests returning to the movies and in terms of their feedback about our extensive AMC Safe & Clean policies and procedures."
The theater chain uses a wide variety of safety measures to curb the spread of the virus, including frequent cleanings in partnership with Clorox, limited capacity for social distancing purposes, contactless ticketing, the requirement of masks for employees and audience members, no cash accepted at concessions, no refills on popcorn or drinks and several hand sanitizer stations.
Meanwhile, a spokesperson for the Cineworld-owned theater chain Regal Cinemas confirmed to FOX Business that new locations in San Diego, El Dorado and Sonora, California are open for business as of Thursday. Additionally, locations in New Jersey and Maryland will reopen on Friday.
You can check out a full list of Regal Cinemas locations that are currently open here.
Cineworld's stock rose 1.5% in after-hours trading on the news on Tuesday, which was first reported by Deadline.