Struggling Six Flags names new CEO. What does that mean for Knott’s and Magic Mountain?

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After weeks of hinting at selling some of its less successful parks, Six Flags Entertainment Corp. announced a new CEO on Monday, as the company faces falling stock prices and decreasing revenue.

Six Flags has appointed John Reilly as its new President and CEO. Reilly is a seasoned leader in the theme park industry, previously holding interim CEO and COO positions at SeaWorld Parks & Entertainment.

Reilly is now leading the North Carolina-based company that runs popular theme parks like Knott’s Berry Farm and Six Flags Magic Mountain, which have been facing challenges.

According to Martin Lewison, a business professor at Farmingdale State College in New York and a Six Flags investor, this will be a significant challenge for him.

After merging with Cedar Fair Entertainment Company last year, Six Flags has faced criticism from visitors due to changes aimed at reducing costs. These changes included restructuring management, leading to the loss of president positions at parks like Knott’s Berry Farm and Magic Mountain. Several parks also saw cuts to live shows, and some popular seasonal events, like WinterFest and Tricks and Treats at California’s Great America, weren’t offered this year.

Lewison noted his visits to Six Flags have been inconsistent, and the company needs to decide on its overall image. Specifically, they need to determine if they want to focus on being a park for families or one geared towards thrill-seekers.

“The company is just sort of a mishmash of a brand right now,” Lewison said.

The holidays usually bring lots of visitors to Southern California theme parks, especially Disneyland. However, Six Flags parks in the region have been facing some difficulties, according to Lewison.

Hollywood Inc.

Six Flags, the struggling theme park company, faced increased pressure this week when Kansas City Chiefs tight end Travis Kelce backed an investor group demanding improvements to the park experience for customers.

Six Flags experienced a drop in revenue and profits during the third quarter, and fewer people visited its parks in October compared to last year. Company leaders recently indicated they are considering closing and selling some of their less successful parks.

I was listening to the Six Flags earnings call recently, and CFO Brian Witherow shared a pretty interesting breakdown. He said about 70% of their profits are coming from a select group of parks that are doing really well, but unfortunately, the others are lagging behind. It’s a bit of a two-tiered system right now, with some locations clearly outperforming the rest.

We’ve been putting a lot of effort and money into fixing up our parks that haven’t been doing as well, hoping to make things better for our guests. While we’re seeing improvements, honestly, we haven’t hit the profit goals we were aiming for just yet.

Travel & Experiences

Valencia’s amusement park is famous for its diverse roller coasters, offering everything from classic wooden rides to thrilling loops, unique single-rail tracks, and even seats that spin you a full 360 degrees.

Witherow gave two examples to illustrate his point. First, he mentioned a successful theme park known for being well-kept and having repeat visitors. There, the company cut costs without affecting customer satisfaction, and profits actually increased by 14%. He then described a struggling park where, even after spending a lot of money on overdue improvements, earnings decreased considerably.

We plan to be more flexible and focused when investing, prioritizing parks that aren’t currently meeting expectations and opportunities that will quickly generate profits,” Witherow stated. He didn’t specify which parks are underperforming.

California

Great America in California, which is owned by Six Flags, likely won’t be open during the winter of 2025. This is based on a notice sent to certain passholders.

Witherow said it’s a priority for Six Flags to narrow its focus “and shrink our capital needs.”

Witherow explained that they plan to concentrate on the parks that are most profitable and offer the best potential for expansion. They will also explore ways to generate revenue from other parks and use those funds to pay down debt.

In the third quarter, Six Flags’ underperforming parks saw attendance decline 5%, Witherow said.

I was really surprised to hear that Six Flags America and Hurricane Harbor in Maryland are closing for good this month – they’re actually putting the land up for sale! And it’s not just them, unfortunately. California’s Great America is also going to close eventually, probably around 2027 or 2032, depending on if they decide to extend their lease. It’s sad to see these parks go.

Is Six Flags thinking about selling one of its California parks? According to Witherow, not right now.

According to Witherow, Six Flags properties in Southern California and Toronto are highly valuable and essential for the company’s future growth. Therefore, selling these parks isn’t something they’re considering right now.

Business

Following the recent $8 billion merger of Six Flags and Cedar Fair, the presidents of both Knott’s Berry Farm and Six Flags Magic Mountain have been removed from their positions as part of efforts to reduce costs.

Reilly is taking over from Richard A. Zimmerman, who previously announced he would be leaving his position as President and CEO of Six Flags on December 8th, and will also be stepping down from the board.

Reilly is starting at Six Flags as the company responds to demands for better performance from investors, including the firm Jana Partners. Recently, NFL player Travis Kelce became part of an investment group – which includes Jana Partners – that now owns around 9% of Six Flags.

Jana intends to work with Six Flags’ leaders to strengthen their marketing and daily operations, update their technology, review the current leadership team, and consider buying other companies.

Travel & Experiences

What started as a small, family-owned stop for berries and tea in the 1920s has grown into a popular Southern California theme park, famous for its fried chicken.

During the earnings call, Zimmerman stated that Six Flags is continuing to have positive discussions with the investment group led by Jana Partners, which includes Kelce. He also noted that after the group publicly expressed interest in Six Flags, they saw an increase in customer interest, which confirms their belief that Six Flags remains a popular and appealing brand.

As a movie critic, I’m always watching who’s grabbing the public’s attention, and right now, it’s clear Travis Kelce has a massive following. I recently spoke with a representative from the National Park Service who explained Kelce is a frequent visitor and a genuine fan of our parks. They’re planning to collaborate closely with him and his team to really leverage his popularity and get more people excited about visiting these incredible natural spaces. It’s a smart move – using someone with his reach could be huge for raising awareness.

Business

Silicon Valley theme park Great America cuts 184 jobs.

I’m looking at the latest numbers, and our net revenues for the third quarter were $1.32 billion. That’s a slight dip – down about $31 million, or 2% – compared to the same time last year. Our adjusted earnings were also a bit lower, at $555 million, a decrease of $3 million. While we saw a small decrease, we’re focused on strategies to drive growth in the coming quarters.

Even with 21.1 million visitors – a 1% increase – there was a concerning trend: guest spending within the parks decreased. This was likely due to more frequent visits from season pass holders and fewer single-day ticket buyers.

Travel & Experiences

Theme park critic Todd Martens took on a huge challenge: ranking every ride at Southern California’s theme parks. Over several months, he experienced them all – from thrilling rollercoasters to immersive, story-based attractions. He didn’t just rate the rides on how fun they were, but also considered their creativity and importance. Here are his rankings for Disneyland, Universal Studios, Knott’s Berry Farm, and Six Flags Magic Mountain, from best to worst. Use his guide to help plan your next park visit – or to share your own opinions!

October saw further indications of declining numbers. Between October 30th and November 2nd, visitor numbers totaled 5.8 million, which was 11% lower than the same period last year.

Six Flags shares closed Monday at $14.44, up 7%. Its 52-week high was $49.77.

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2025-11-25 14:02