Summer Time Is SeaWorld Entertainment Inc (SEAS) Time

Competition

SeaWorld Entertainment Inc (NYSE:SEAS) competes with other theme park operators, including Six Flags Entertainment Corp (NYSE:SIX) and The Walt Disney Company (NYSE:DIS). While Six Flags Entertainment Corp (NYSE:SIX) focuses on operating regional theme, water and zoological parks, Walt Disney is a much more diversified media and entertainment company. The Walt Disney Company (NYSE:DIS)’s parks and resorts segment operates the The Walt Disney Company (NYSE:DIS) Resorts globally.

Six Flags Entertainment Corp (NYSE:SIX) had delivered a strong first quarter and reported record revenue. The company had been growing its revenue steadily in the past few years and continues to invest heavily, with its capital expenditures standing at around 9% of revenue. Its recent facility development is highlighted with SkyScreamer at Six Flags Entertainment Corp (NYSE:SIX) Over Georgia. The outlook for Six Flags Entertainment Corp (NYSE:SIX) remains bright with increasing traffic and per capita spending.

Earlier in May, Disney’s theme parks and resorts segment delivered its largest profit growth, up 73% to $383 million. The revenue was boosted with higher prices for admission tickets and in-park food and beverages, as well as longer visitor stays in the resorts. With solid branding power, Disney is expected to benefit strongly as the economy continues to improve.

Bottom line

As the latest IPO in the theme park industry, SeaWorld gives investors more options to invest in this highly capital intensive industry. The value of theme parks is to provide enjoyable experiences and memorable moments for families and visitors. Each with its own unique theme and geographic location, SeaWorld’s addition to the industry should help capture more attentions from investors while adding limited competitions to the existing players. Overall, more long-term growth is expected for SeaWorld as it continues to expand with its distinctive edges.

Nick Chiu has no position in any stocks mentioned. The Motley Fool recommends The Walt Disney Company (NYSE:DIS). The Motley Fool owns shares of Walt Disney.

The article Summer Time Is SeaWorld Time originally appeared on Fool.com.

Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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