Six Flags: Business and Financial Analysis

Six Flags: Business and Financial Analysis
Six Flags is the largest regional theme park in the world, and the largest water park operator in North America. Six Flags has 27 locations in North America. Six Flags generates 70% of its annual revenue between April and September.
Six Flags is still reeling from a massive drop in attendance which is forcing the company to rethink its business strategy.
Six Flags is not Disney. Teenagers have always been the core demographic. It is commonly considered a day care for teenagers. We have a Six Flags in Chicagoland in Gurnee. Throughout the summer, it is not uncommon to hear about crime and violence at the park on the evening news.
Six Flags is investing $150 million into park upgrades in 2023.
Regional theme parks are considered a mature industry.
The average visitor to Six Flags spent $63.98 for a one day visit which is a 22% increase versus 2021.
Family Focus
Six Flags is focusing on families by providing more offerings for younger children and their parents. They are working on cleaner bathrooms and more seating in the shade. Some parks feature face painting and multiple kids’ sections. Six Flags is upgrading the parks by adding thousands of plants and trees, adding more trash cans, installing additional tables, and updating food service. Park beautification and new additions will justify higher prices according to Selim Bassoul, the CEO.
Is Six Flags’ pivot towards families a miscalculation? I will argue it depends on the execution of the strategy. Six Flags needs to maintain, and slowly bring online, additional roller coasters that appeal to teenagers and adults. However, the company does need to find a way to crack down on roving gangs of teenagers. In Chicagoland, we are seeing multiple cities cancel festivals and street fairs because there have been flash mobs of teenagers that start fights and even brawl with the police.
Price
In 2022, Six Flags raised the average price of admission from $28.73 to $35.99. The price increase led to a 26% decrease in visits versus 2021. The company decreased the price and began offering ticket discounts.
A lower ticket price results in more visitors and longer lines, which decreases the quality of the experience. The CEO admitted that Six Flags has been too deeply discounted in the past, and became overcrowded.
I’ve seen it suggested that Six Flags should stop offering season passes and heavy discounts because this attracts parents that just dump their kids at the park throughout the summer, unsupervised, which causes a negative experience for families that are visiting the parks.

Food
Food and Merchandise compose over 40% of Six Flag’s revenue. In 2021 it was 48% of revenue but that decreased to 42% in 2022.
The CEO used to work for a food-service equipment maker for almost 20 years. Six Flags is spending million on upgrading food preparation. Food offerings vary by park. The company is experimenting with Korean corn dogs and mocktails.
It can take over 30 minutes to order lunch on a Saturday.
Works Cited:
https://www.wsj.com/articles/six-flags-texas-roller-coasters-170180a8?mod=hp_lead_pos7
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