Cedar Fair Entertainment Demonstrates Resilience as 2023 Revenue Reaches $1.80 Billion Amid Strategic Transformation

Cedar Fair Entertainment Company (NYSE: FUN), one of North America’s largest regional amusement-resort operators, wrapped up 2023 with impressive operational momentum despite a challenging first half, with total annual revenue hitting $1.80 billion and attendance reaching 26.7 million guests. The company’s performance in the latter six months of the year showcased the inherent durability of its business model while setting the stage for accelerated growth heading into 2024.

Breaking Down the Numbers: Cedar Fair’s Full-Year Performance

The entertainment company generated net revenues of $1.80 billion throughout 2023, representing a marginal decline from 2022’s $1.82 billion, though this apparent softness masks a compelling underlying recovery story. The slight revenue contraction primarily reflects early-year headwinds from severe weather conditions that dampened visitor demand during the first half, combined with strategic recalibration of pricing tactics at key park locations.

What stands out more strikingly is how Cedar Fair’s operational execution evolved through the year. Out-of-park revenue streams—encompassing resort operations, food retail, and ancillary services—climbed to a record $223 million, up 5% year-over-year and adding $10 million to the top line. This expansion was fueled by full-year operations of Castaway Bay Resort and Sawmill Creek Resort following their 2022 renovation closures.

Attendance dynamics tell an equally important story. While total guest visits declined marginally to 26.7 million from 26.9 million in 2022, the fourth quarter alone attracted a historic 5.8 million visitors—a 9% surge compared to Q4 2022—driven predominantly by season pass holder activity as the company’s 2024 advance sales program gained traction.

Adjusted EBITDA and the Path Forward

Adjusted EBITDA, a key metric for evaluating park-level operational efficiency, totaled $528 million for the full year versus $552 million in 2022. Though this represents a $24 million decrease, management attributes this primarily to weather-driven attendance fluctuations in the opening months and elevated insurance, advertising, and property lease expenses rather than operational inefficiency.

The per-guest spending picture proved nuanced. In-park per capita spending declined 1% to $61.05 annually, a shift driven partly by a strategic pivot toward promotional ticketing channels in the first half of 2024 season pass sales acceleration. Fourth-quarter per capita spending of $58.61 reflected similar dynamics, as the attendance mix weighted toward lower-priced access points even as the company successfully expanded food and beverage transaction values through menu innovation.

Capital Structure and Shareholder Returns

As of December 31, 2023, Cedar Fair carried total debt of $2.3 billion with $65 million in cash on hand, yielding net debt of $2.2 billion. The company maintained total liquidity of $345 million through its combination of cash reserves and revolving credit availability, providing meaningful flexibility for capital deployment and shareholder distributions.

The Board approved a quarterly cash distribution of $0.30 per limited partner unit, payable March 20, 2024, reflecting confidence in the company’s forward cash generation. During 2023, the company repurchased approximately 1.7 million limited partnership units for roughly $75 million—representing 3% of outstanding units at year-start—demonstrating balanced capital allocation between organic reinvestment and shareholder returns.

The 2024 Outlook: Season Pass Momentum as a Growth Catalyst

Perhaps the most compelling forward indicator comes from advance sales performance. Season pass unit sales through January 2024 ran approximately 20% ahead of the prior-year pace, with strong uptake in add-on products expanding the revenue per season pass holder. CEO Richard Zimmerman characterized this advance sales velocity as a “tailwind” supporting both attendance and revenue expansion throughout the coming season.

This momentum reflects Cedar Fair’s mid-year strategic adjustments that successfully recalibrated both marketing spend and pricing architecture to reignite consumer demand. The company effectively balanced margin expansion through operational cost discipline—trimming seasonal labor hours and in-park entertainment expenditures—while maintaining the experience quality that drives repeat visits and season pass adoption.

Strategic Consolidation and Long-Term Value Creation

Overlaying this operational narrative is Cedar Fair’s proposed merger with Six Flags, announced in early November 2023. The combination represents a transformational opportunity for the combined entity to capture meaningful synergies in marketing, procurement, and capital allocation that individually neither company could achieve. Management expects regulatory approvals from the Department of Justice and Six Flags stockholder support to converge on transaction completion during the first half of 2024.

Cedar Fair’s demonstrated operational flexibility, coupled with an expanding advance-sales pipeline and successful cost management initiatives, positions the company favorably for sustained value creation regardless of whether 2024 unfolds as a standalone operator or within a combined platform with Six Flags.

The company operates 13 properties comprising 11 amusement parks, four separately gated water parks, and over 2,300 guest rooms plus 600 luxury RV sites distributed across strategic geographic markets in the Midwest, Southeast, Southwest, and Northeast regions, providing substantial scale advantages in consumer marketing and operational procurement.

Key Takeaway

Cedar Fair’s 2023 results validate that despite macro headwinds and industry-wide promotional intensity in the first half, the core amusement park operating model remains exceptionally resilient. With season pass pre-sales accelerating, operational discipline taking hold, and strategic M&A on the horizon, the company appears positioned for an inflection toward accelerating growth trajectory through 2024 and beyond.