While time will tell how historians write the story of 2020, it is 2020 version of drive-in movies during “Marcus Parking Lot safe to say the political, societal, economic and health challenges Cinemas” at select locations. As our theatres continued to of the past year are among the most acute of our time. For the reopen, the division recently launched “Marcus Private Cinema,” Marcus Corporation, there is no question that 2020 was the most allowing guests to reserve an entire auditorium for up to 20 challenging year in our history, with our movie theatres, hotels people, offering a safe, fun and stress-free social gathering and restaurants either closed or operating well below capacity opportunity. These are just two of the many creative ways in for much of the year because of the COVID-19 pandemic. which we continue to drive value for our guests despite the challenges of the past year. Despite the severity of this test, we reaffirmed the foundational strategies that guide how we run the company. We focus on As of the writing of this letter, nearly 70% of our theatres are our balance sheet and our majority owned real estate model. open and welcoming moviegoers back to the big screen. As Our team’s professionalism has served us well over our 85-year the major film studios begin to release the substantial backlog history, with 2020 being no different. of high-quality films, we believe the demand for out-of-home entertainment will increase. And when it does, our team and At the end of the fiscal year, our debt ratio was equal to or theatres are well positioned to welcome back even more lower than seven of the last 10 fiscal year-ends. Access to capital moviegoers craving to see movies the way they are intended. remained strong, with approximately $227 million in cash and revolving credit availability as of December 31, 2020. If needed, All eight Marcus® Hotels & Resorts company-owned hotels we have the financial flexibility to sustain operations throughout are open, as are nine out of 10 managed hotels and other fiscal 2021 even if our properties continue to generate properties. Our “Clean Care Pledge” is at work throughout significantly reduced revenues due to the effects of the our properties, incorporating the best industry practices for COVID-19 pandemic. cleanliness, sanitization, and operations of our hotels and restaurants. While the COVID-19 pandemic negatively impacted Our mostly owned real estate model remains a competitive our group business, and the loss of the Democratic National advantage compared to our peers as it keeps our fixed monthly Convention in Milwaukee was a disappointment, many cancelled lease payments low and provides underlying credit support for groups are rebooking for future dates. Moreover, our sales and our balance sheet. It also affords us the opportunity to monetize marketing teams continue to do an outstanding job of creating select assets to strengthen our liquidity, as we did in the fourth SHAREHOLDERS, unforgettable experiences for our guests, especially for drive-to- quarter of 2020. leisure guests who continue to lead the recovery. As the return And without a doubt, the incredible bravery, commitment and to travel builds steam, our properties are uniquely positioned in resilience of our associates continues to guide us. This is true their respective markets to capture improving demand. from our front-line staff to our executive leadership team who Throughout our history, The Marcus Corporation has been worked day and night to get us through this crisis, all while resilient in the face of adversity. Our creativity, tenacity and taking great care of our guests, our communities and each other. genuine love of what we do determinedly drives us forward, FROM SURVIVING TO THRIVING not just to survive but to thrive. When we wrote to you last year, With the dawn of 2021 came renewed hope for the future. we did not know what the future held. But we did know that DEAR Continuing good news about vaccines, improving health whatever was coming, we would meet the challenge. Being in conditions in our markets and increasing consumer confidence the movie business, this reminds us of one of our favorite scenes bodes well for a return to normalcy. But we also know there is a from Apollo 13. Having just been told all the reasons why this tremendous amount of work ahead. Revenues and operating might be the worst disaster NASA has ever experienced, the income decreased significantly in 2020. While we are seeing actor playing Gene Kranz at Mission Control responded: “With encouraging signs within both of our divisions, we also know all due respect, sir, I believe this will be our finest hour.” While that the full return of our theatres, hotels and restaurants will obviously very different situations, the prophetic words of not happen overnight nor will it necessarily happen in a linear Kranz feels fitting for our experience, as well. fashion. There most likely will be some further bumps in the Words cannot adequately express how proud we are to road, but the car is still driving! be part of this amazing team. We are also grateful to you, As we continue to manage the short-term, we remain optimistic our shareholders, as well as our lenders for your continued about the long-term. Our business was founded during the confidence and support. There are many reasons to believe middle of the Great Depression. Since then, we have grown and that brighter days are ahead, and we look forward to evolved despite other major economic events and global crises welcoming all of you and our valued guests back to our (WWII, the 1973 Oil Crisis, 9-11, and the Great Recession, to name theatres, hotels and resorts! just a few). The adage “this too shall pass” certainly applies, but it does not mean we are just waiting for the recovery. Instead, we are continuing to innovate and move forward. At Marcus Theatres®, our team has been hard at work to safely continue delivering magical movie experiences to our guests. Gregory S. Marcus Stephen H. Marcus That starts with our “Movie STAR” approach to health and safety, President and CEO Chairman which meets or exceeds CDC guidelines. While our theatres were closed this summer, movie lovers were able to enjoy the March 25, 2021 Stephen H. Marcus (d) Gregory S. Marcus Chairman, The Marcus Corporation President and Chief Executive Officer Gregory S. Marcus (d) Thomas F. Kissinger President and Chief Executive Officer, Senior Executive Vice President, The Marcus Corporation General Counsel and Secretary Philip L. Milstein, Lead Director (b) (c)* (d) Douglas A. Neis Principal, Ogden CAP Properties, LLC Executive Vice President, Chief Financial Officer and Treasurer Diane Marcus Gershowitz Real Estate Management Rolando B. Rodriguez and Investments Executive Vice President, The Marcus Corporation and Chairman, President and Timothy E. Hoeksema (c) CEO, Marcus Theatres Corporation Retired Chairman, President and DIRECTORS Chief Executive Officer, Michael R. Evans Midwest Air Group, Inc. President, Marcus Hotels & Resorts Allan H. (Bud) Selig (b)* (d) Kim M. Lueck Commissioner Emeritus of Major MANAGEMENT Chief Information Officer League Baseball John E. Murray Bruce J. Olson Vice President of Human Resources Retired Senior Vice President, The Marcus Corporation and Retired President, Marcus Theatres Corporation Brian J. Stark (a)* (b) (d) Founding Principal, Chief Executive BOARD OF BOARD Officer and Chief Investment Officer, Stark Investments Katherine M. Gehl (a) (c) Former Chairman, President and CEO, OFFICERS AND EXECUTIVE Gehl Foods, Inc. David M. Baum (a) (c) (d)* President, Baum Media Group, LLC Former Partner, Goldman, Sachs & Co. COMMITTEES OF THE BOARD: (a) Audit (b) Compensation (c) Corporate Governance and Nominating (d) Finance *Denotes chairman UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-12604 THE MARCUS CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1139844 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 100 East Wisconsin Avenue, Suite 1900 Milwaukee, Wisconsin 53202-4125 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (414) 905-1000 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common stock, $1.00 par value MCS New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).