The Marcus Corporation Reports Year-End Results; Total Revenues Increase in All Three Divisions; Operating Income up 4.1%

Business Wire, July 24, 2003

                        THE MARCUS CORPORATION
                  Consolidated Statements of Earnings
                 (in thousands, except per share data)


                            13 Weeks Ended          52 Weeks Ended
                          ------------------      -------------------
                           May 29,    May 30,      May 29,     May 30,
                            2003       2002         2003        2002
                          -------    -------      -------     -------
                       (Unaudited) (Unaudited)  (Unaudited)
Revenues:
    Rooms and
     telephone           $ 42,896   $ 43,913     $172,002    $170,332
    Theatre
     admissions            22,074     24,886       98,811      96,502
    Theatre
     concessions           10,170     12,063       45,590      45,332
    Food and
     beverage               7,673      8,367       33,487      31,812
    Other income           13,752     12,328       47,025      45,855
                          -------    -------      -------     -------
Total revenues             96,565    101,557      396,915     389,833

Costs and expenses:
    Rooms and
     telephone             20,932     21,392       79,816      79,359
    Theatre
     operations            17,672     19,824       76,371      73,401
    Theatre
     concessions            2,273      2,597       10,198      10,370
    Food and
     beverage               6,542      6,953       26,465      25,995
    Advertising and
     marketing              8,078      7,510       29,517      27,220
    Administrative         10,414     11,142       40,781      39,963
    Depreciation and
     amortization          11,253     11,491       45,365      44,887
    Rent                      562        804        2,407       2,958
    Property taxes          3,840      3,915       15,204      16,339
    Pre-opening
     expenses                  39         51           60       1,143
    Other operating
     expenses               6,232      5,214       21,346      20,740
                          -------    -------      -------     -------
Total costs and
 expenses                  87,837     90,893      347,530     342,375
                          -------    -------      -------     -------

Operating income            8,728     10,664       49,385      47,458

Other income
 (expense):
    Investment
     income (loss)            184        805         (158)      2,353
    Interest expense       (4,536)    (4,838)     (19,642)    (18,807)
    Gain (loss) on
     disposition of
     property,
     equipment and
     investments
     in joint
     ventures                (748)       531        2,111       2,496
                          -------    -------      -------     -------
                           (5,100)    (3,502)     (17,689)    (13,958)
                          -------    -------      -------     -------
Earnings from
 continuing
 operations
 before income taxes        3,628      7,162       31,696      33,500
Income taxes                  979      2,870       12,389      11,040
                          -------    -------      -------     -------
Earnings from
 continuing
 operations                 2,649      4,292       19,307      22,460

Discontinued
 operations:
    Income from
     discontinued
     operations,
     net of applicable
     income taxes              33         --        1,249          --
                          -------    -------      -------     -------
Net earnings             $  2,682   $  4,292     $ 20,556    $ 22,460
                          =======    =======      =======     =======

Earnings per share -
 basic:
    Continuing
     operations          $   0.09   $   0.15     $   0.66    $   0.77
    Discontinued
     operations              0.00         --         0.04          --
                          -------    -------      -------     -------
    Net earnings per
     share               $   0.09   $   0.15     $   0.70    $   0.77

Earnings per share -
 diluted:
    Continuing
     operations          $   0.09   $   0.14     $   0.66    $   0.76
                          =======    =======      =======     =======
    Discontinued
     operations              0.00         --         0.04          --
                          -------    -------      -------     -------
    Net earnings per
     share               $   0.09   $   0.14     $   0.70    $   0.76
                          =======    =======      =======     =======

Weighted average
 shares outstanding:
    Basic                  29,457     29,307       29,388      29,245
    Diluted                29,597     29,646       29,549      29,470



                        THE MARCUS CORPORATION
                 Condensed Consolidated Balance Sheets
                            (in thousands)

                                             May 29, 2003 May 30, 2002
                                             ------------ ------------
                                             (Unaudited)
Assets:
      Cash and cash equivalents                 $  6,039     $  5,614
      Accounts and notes receivables              29,685       19,804
      Refundable income taxes                      4,032        4,947
      Real estate and development costs            5,338        2,532
      Other current assets                         5,771        4,512
      Property and equipment - net               655,803      683,639
      Other assets                                48,789       53,738
                                             ------------ ------------

Total Assets                                    $755,457     $774,786
                                             ============ ============


Liabilities and Shareholders' Equity:
      Accounts and notes payable                $ 22,188     $ 20,708
      Taxes other than income taxes               13,682       13,947
      Other current liabilities                   18,110       17,820
      Current maturities of long-term debt        72,906       20,777
      Long-term debt                             203,307      299,761
      Deferred income taxes                       38,768       36,529
      Deferred compensation and other             16,596       11,176
      Shareholders' equity                       369,900      354,068
                                             ------------ ------------

Total Liabilities and Shareholders' Equity      $755,457     $774,786
                                             ============ ============


                        THE MARCUS CORPORATION
               Business Segment Information (Unaudited)
                            (in thousands)

                      Limited-
                      Service             Hotels/   Corporate
                       Lodging  Theatres  Resorts   Items     Total
                      --------  --------  -------   --------- -----
13 Weeks Ended
 May 29, 2003
Revenues              $ 31,875  $ 34,158  $ 30,240   $   292 $ 96,565
Operating income
 (loss)                  1,682     7,746       935    (1,635)   8,728

13 Weeks Ended
 May 30, 2002
Revenues              $ 31,803  $ 39,063  $ 30,153   $   538 $101,557
Operating income
 (loss)                  2,003     9,184     1,305    (1,828)  10,664

52 Weeks Ended
 May 29, 2003
Revenues              $126,612  $150,383  $118,490   $ 1,430 $396,915
Operating income
 (loss)                 11,523    36,162     8,820    (7,120)  49,385

52 Weeks Ended
 May 30, 2002
Revenues              $125,711  $147,311  $114,914   $ 1,897 $389,833
Operating income
 (loss)                 13,509    34,682     6,263    (6,996)  47,458


Corporate items include amounts not allocable to the business
segments. Corporate revenues consist principally of rent and the
corporate operating loss includes general corporate expenses.