James Bond Movie Delay Jolts Cinema and Restaurant Stocks
Cineplex Inc., a takeover target of Cineworld, also slid after a short seller said the deal is likely to fall apart. And it wasn’t just movie theater stocks feeling the pain: Restaurant Group Plc, which has outlets located near to cinemas, also tumbled. The release date for the Bond sequel “No Time to Die” was pushed back from April to November late Wednesday, and according to Peel Hunt analyst Ivor Jones the postponement is unlikely to be the last. “Films are expensive to produce and promote and, with many Asian cinemas closed, and the prospect of, at best, reduced audiences elsewhere, other producers of major films may choose to delay release,” the analyst wrote in a note as he cut his recommendation on Cineworld to hold from buy. The plunge for U.K.-listed Cineworld -- which also owns the Regal chain in the U.S. and last year announced a deal to buy Canada’s Cineplex -- was its biggest on record, and extended a year-to-date plunge to 45%.