Shares of movie theater chains AMC Entertainment Holdings Inc AMC and Cinemark Holdings, Inc. CNK were notably higher Monday after confirming plans to reopen locations in California.
What Happened: Cinemark said over the weekend it already opened more than 10 theaters as of March 13 and expect to reopen another 10 locations in Los Angeles by Monday. After its Los Angeles reopening, nearly 90% of all domestic locations will be open.
The timing of the reopening coincides with the launch of several notable Hollywood attractions, including "Wonder Woman 1984." Upcoming releases include "Godzilla vs. Kong", "Mortal Kombat," among others.
AMC will open 31 of its Los Angeles locations by Monday and another 23 locations won't open until Friday, according to Deadline.
Related Link: Why Wanda Group Is Trimming Its Holdings In AMC Theater Chain
Why It's Important: Los Angeles is "one of the most meaningful moviegoing markets in the world" and the plethora of current and future film releases means "there is no better time" to get back to the theaters, Cinemark CEO Mark Zoradi said in the press release.
"Cinemark is thrilled to once again offer Los Angeles movie lovers the chance to see a movie on our big screens with sight and sound technology that truly cannot be replicated at home," the CEO said.
What's Next: Movie theaters will operate at 25% capacity for the time being, but California Governor Gavin Newson said counties have the authority to implement more restrictive rules.
See also: How to Buy AMC Stock
AMC's stock was up 24% to $14.08 at publication time, while Cinemark's stock was up 7.7% to $25.88.
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