I was never a big believer that this whole popcorn thing would ever amount to anything. “Sure, it might shave off a couple million from our debt each quarter” I thought. I now am I firm believer that this just might be the ticket out.
I stumbled upon an interesting survey posted in 2022, but the data is from 2020: https://www.statista.com/statistics/277156/us-households-number-of-popcorn-bags-eaten-within-30-days/
It appears that 229 million people were surveyed. Out of those people, 211 million said that they eat at least one bag of popcorn per month. Also out of those 211 million, 100 million of them said they eat 3-5 bags per month, and another 30 million eat more than 6 bags per month. WOW! Orville Redenbacher is the current leader in microwave popcorn sales, making over $1 billion per year, and they only account for 45% of all popcorn sales. Using that number alone tells me that the microwave popcorn industry is over $2 billion dollars.
Of course, we don’t know what constitutes “one bag” in the survey. It could be a bag purchased from the theater, a pre-popped bag from the store or a microwaveable bag…. we don’t know. The fact of the matter is, Americans eat a LOT of popcorn and if AMC can even get a small piece of the pie, we are in for some great upcoming quarters. The margin on popcorn is HUGE. It probably costs more to package it and ship it than it does to actually make it. It wouldn’t take too many 4-dollar bags of AMC popcorn (that they’re probably making like $3 on) to affect our balance sheet. I foresee good things to come.