Six Flags' Summer Woes: Attendance Down, Debt at $5.29 Billion, and Ride Malfunctions

Six Flags Entertainment (FUN) stock is down due to lower attendance, poor park quality, and issues with new rides. The company's total debt is $5.29 billion, and attendance is down across the industry. FUN stock is down 1.17% on Monday and has dropped 46.34% year-to-date. The consensus rating for Six Flags is Moderate Buy, with an average price target of $30.25, representing a 19.8% upside for the shares.

Six Flags Entertainment (FUN) stock experienced a 1.17% decline on Monday, extending its year-to-date drop to 46.34%. The theme park operator has faced numerous challenges this summer, including lower attendance and issues with park quality, which have negatively impacted its financial performance. Among these problems are poor weather conditions, ride malfunctions, and the underperformance of new attractions like Siren’s Curse at Cedar Point [1].

The company's total debt stands at $5.29 billion, and its second-quarter performance fell significantly below expectations, with attendance dropping 9% compared to the combined portfolio of legacy Six Flags and Cedar Fair operations last year [2]. Six Flags has also reported heavy losses in the past two quarters, further exacerbating its financial struggles.

Despite these challenges, Six Flags has taken steps to address its issues. The company has announced plans to shut down Six Flags America in Bowie, Maryland, and its accompanying water park, Hurricane Harbor, at the end of the 2025 operating season. Additionally, it plans to sell excess land in Richmond, Virginia, to generate gross proceeds of at least $200 million for debt reduction [2]. The company has also reduced its planned capital expenditure to about $400 million from the previous estimate of $450-500 million [2].

The consensus rating for Six Flags is Moderate Buy, based on five Buy, two Hold, and a single Sell rating over the past three months. The average price target for FUN stock is $30.25, representing a potential 19.8% upside for the shares [1]. However, the company's leverage remains above 5x, and S&P Global Ratings has downgraded Six Flags to 'BB-' with a negative outlook, citing continued operating weakness [2].

As the summer season, the busiest period for Six Flags, draws to a close, the company faces an uphill battle to turn its financial fortunes around. The theme park industry as a whole has seen a decline in attendance this summer, with several other theme parks struggling to attract visitors [1]. Competition from other major theme parks like Disney and Universal has also put pressure on Six Flags' attendance numbers [3].

Investors should closely monitor Six Flags' progress in the coming months, as the company's ability to improve attendance, reduce debt, and enhance park quality will be critical to its recovery. The company's announcement of a new CEO and potential divestitures may also signal a shift in strategy aimed at addressing its long-term challenges [2].

References:
[1] https://www.tipranks.com/news/six-flags-entertainment-stock-fun-falls-on-summer-woes
[2] https://www.investing.com/news/stock-market-news/six-flags-downgraded-to-bb-by-sp-on-weak-performance-93CH-4193612
[3] https://www.morningbrew.com/stories/2025/08/18/it-s-been-a-rough-ride-for-six-flags-this-summer