As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary – leisure facilities industry, including AMC Entertainment 
AMC and its peers.
The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare.Leisure facilities companies own and operate theme parks, fitness centers, bowling alleys, and other venue-based entertainment destinations, generating revenue from admissions, memberships, and on-site spending. Tailwinds include consumer preference for experiential spending, tourism recovery, and technology-enhanced guest experiences that support premium pricing. Headwinds are notable: high fixed costs, such as real estate, labor, and maintenance, make profitability highly sensitive to attendance fluctuations during economic slowdowns. Weather, pandemics, and safety incidents can disrupt operations unpredictably. Rising construction and labor costs inflate expansion budgets, while competition from at-home entertainment alternatives and other experiential options limits pricing power in many markets.
The 10 consumer discretionary – leisure facilities stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9.5% on average since the latest earnings results.
AMC Entertainment AMC
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment AMC operates movie theaters primarily in the US and Europe.
AMC Entertainment reported revenues of $1.05 billion, up 21.2% year on year. This print exceeded analysts’ expectations by 9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 28.6% since reporting and currently trades at $2.05.
Best Q1: Live Nation 
LYV
Owner of Ticketmaster and operator of music festival EDC, Live Nation LYV is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Live Nation reported revenues of $3.79 billion, up 12.1% year on year, outperforming analysts’ expectations by 6.1%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 16.2% since reporting. It currently trades at $182.75.
Weakest Q1: Dave & Buster’s 
PLAY
Founded by a former game parlor and bar operator, Dave & Buster’s PLAY operates a chain of arcades providing immersive entertainment experiences.
Dave & Buster’s reported revenues of $559.2 million, down 1.5% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and same-store sales estimates.
As expected, the stock is down 14.5% since the results and currently trades at $11.27.
Read our full analysis of Dave & Buster’s results here.
Planet Fitness 
PLNT
Founded by two brothers who purchased a struggling gym, Planet Fitness PLNT is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Planet Fitness reported revenues of $337.2 million, up 21.9% year on year. This result beat analysts’ expectations by 12.4%. It was an exceptional quarter as it also recorded a solid beat of analysts’ adjusted operating income and EPS estimates.
Planet Fitness pulled off the biggest analyst estimate beat among its peers. The stock is down 18.3% since reporting and currently trades at $52.25.
Read our full, actionable report on Planet Fitness here, it’s free.
Callaway Golf Company 
CALY
Formed between the merger of Callaway and Topgolf, Callaway Golf Company CALY sells golf equipment and operates technology-driven golf entertainment venues.
Callaway Golf Company reported revenues of $687.5 million, up 9.2% year on year. This number topped analysts’ expectations by 5.5%. Overall, it was an exceptional quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Callaway Golf Company achieved the highest full-year guidance raise among its peers. The stock is up 29.8% since reporting and currently trades at $19.17.
Read our full, actionable report on Callaway Golf Company here, it’s free.
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