The Marcus Corporation (MCS) 8-K THE MARCUS CORPORATION REPORTS SECOND QUARTER RESULTS Both revenues and earnings from continuing operations increase over prior year period

THE MARCUS CORPORATION REPORTS SECOND QUARTER RESULTS
Both revenues and earnings from continuing operations increase over prior year period

Milwaukee, Wis., December 15, 2005…The Marcus Corporation (NYSE:MCS) today reported results for the second quarter and six months ended November 24, 2005.

Second Quarter Fiscal 2006 Highlights

• Total revenues for the second quarter of fiscal 2006 were $68,377,000, a 10.0% increase from revenues of $62,135,000 for the second quarter of the prior year.

• Earnings from continuing operations increased 2.4% to $4,522,000 or $0.15 per diluted share for the second quarter of fiscal 2006, from earnings from continuing operations of $4,417,000 or $0.14 per diluted share for the comparable prior period.

• Net earnings were $5,044,000 or $0.16 per diluted share for the second quarter of fiscal 2006, compared to net earnings of $71,588,000 or $2.34 per diluted share for the same period in fiscal 2005. The net earnings for the second quarter of fiscal 2005 included an after-tax gain of $71.0 million on the sale of the company’s former limited-service lodging division.

• The company’s former limited-service lodging division and Miramonte Resort have been classified as discontinued operations in accordance with current accounting pronouncements.

First Half Fiscal 2006 Highlights

• Total revenues were $156,579,000 for the first half of fiscal 2006, a 4.8% increase from revenues of $149,474,000 for the same period in the prior year.

• Earnings from continuing operations were $16,838,000 or $0.55 per diluted share for the first half of fiscal 2006, a 7.9% increase from earnings from continuing operations of $15,603,000 or $0.52 per diluted share for the first half of fiscal 2005.

• Net earnings were $20,533,000 or $0.67 per diluted share for the first half of fiscal 2006, compared to net earnings of $89,733,000 or $2.96 per diluted share for the comparable prior period.

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“We are pleased to report our second consecutive quarter with overall increases in both revenues and earnings from continuing operations. Marcus Hotels and Resorts drove the improvement with a record second quarter. Results for Marcus Theatres were mixed, as we opened and closed the quarter with increased revenues but suffered from a stretch of lackluster movies in between,” said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.

Marcus Hotels and Resorts

Revenue per available room (RevPAR) for comparable Marcus Hotels and Resorts properties increased 9.8% in the second quarter and 7.0% for the first half of fiscal 2006, compared to the prior year periods. “Increased demand from business travel, combined with low supply growth, is proving to be beneficial for Marcus Hotels and Resorts and the lodging industry as a whole,” said Marcus.

Marcus noted that the division’s two newest hotels, the Four Points by Sheraton Chicago Downtown/Magnificent Mile and the Wyndham Milwaukee Center, contributed to the increased revenues and operating income. “We are also making good progress on new properties under development. The Platinum Hotel & Spa, our luxury hotel condominium project in Las Vegas, is on track to open in June 2006. At the Skirvin Hotel in Oklahoma City, interior demolition work is currently underway, with the full-scale renovation scheduled to begin shortly,” said Marcus.

“Nationally, the outlook for hotels is strong, and we expect that Marcus Hotels and Resorts will continue to benefit from the positive industry momentum,” said Marcus.

Marcus Theatres^®

Marcus Theatres reported lower revenues and operating income for the second quarter. “The quarter got off to a good start, with a stronger September than usual. Unfortunately, the October and early November film slate did not perform as well as its counterpart last year. The quarter ended on a strong note, however, with the opening ofHarry Potter and the Goblet of Fire in mid-November. In addition toHarry Potter and the Goblet of Fire,other top movies for the second quarter wereChicken LittleandFlightplan,” said Marcus.

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“The box-office potential for this holiday season is encouraging.The Chronicles of Narnia: The Lion, The Witch and The Wardrobeopened very strong this past weekend andKing Kongopened yesterday to great expectations. Other potential hits opening in the next week includeThe Family Stone, Fun with Dick and Jane, Cheaper by the Dozen 2andMunich,followed by the Christmas Day openings ofRumor Has ItandThe Producers. This mix of movies has the quality and broad appeal we need to attract audiences of all ages to our theatres,” added Marcus.

Use of Proceeds from Sale of Limited-Service Lodging Division

“We are continuing our evaluation of the potential uses of the proceeds from the sale of the limited-service lodging division, including possible returns of capital to shareholders. We expect that we will have more to say on this subject shortly,” said Marcus.

Conference Call and Webcast

Marcus Corporation management will host a conference call today, December 15, 2005, at 3:00 p.m. Central/4:00 p.m. Eastern time to discuss the second quarter results. Interested parties can listen to the call live on the Internet through the investor relations section of the company’s Web site:www.marcuscorp.com, or by dialing 1-913-981-5540. Listeners should dial in to the call at least 5 — 10 minutes prior to the start of the call or should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for telephone replay through Thursday, December 22, 2005 by dialing 1-888-203-1112 and entering the passcode 6379496. The Webcast of the conference call will be archived on the company’s Web site until the next earnings release.

About The Marcus Corporation

Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The Marcus Corporation’s movie theatre division, Marcus Theatres^®, owns or manages 504 screens at 45 locations in Wisconsin, Illinois, Minnesota and Ohio, and one family entertainment center in Wisconsin. The company’s lodging division, Marcus Hotels and Resorts, owns or manages 12 hotels and resorts in Wisconsin, California, Minnesota, Missouri, Texas and Illinois and one vacation club in Wisconsin. For more information, visit the company’s Web site atwww.marcuscorp.com.

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Certain matters discussed in this Press Release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements include words such as we “believe,” “anticipate,” “expect” or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause results to differ materially from those expected, including, but not limited to, the following: (1) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division; (2) the effects of increasing depreciation expenses and preopening and start-up costs due to the capital intensive nature of our businesses; (3) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (4) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (5) the effects on our occupancy and room rates from the relative industry supply of available rooms at comparable lodging facilities in our markets; (6) the effects of competitive conditions in the markets served by us; (7) our ability to identify properties to acquire, develop and/or manage and continuing availability of funds for such development; (8) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States, the United States’ responses thereto and subsequent hostilities; and (9) our decisions regarding the use of the proceeds received from the sale of our limited-service lodging division. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this Press Release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

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

	13 Weeks Ended						26 Weeks Ended
	Nov. 24, 2005			Nov. 25, 2004			Nov. 24, 2005			Nov. 25, 2004
Revenues:
Rooms and telephone	$	20,321		$	14,769		$	43,607		$	33,386
Theatre admissions		19,119			19,457			47,866			51,573
Theatre concessions		8,995			9,381			22,651			24,352
Food and beverage		10,727			9,759			21,501			19,650
Other revenues		9,215			8,769			20,954			20,513
Total revenues		68,377			62,135			156,579			149,474
Costs and expenses:
Rooms and telephone		6,959			5,755			14,472			11,776
Theatre operations		15,351			15,696			37,314			39,950
Theatre concessions		1,953			2,075			4,896			5,299
Food and beverage		7,847			7,170			16,034			14,489
Advertising and marketing		4,797			3,992			9,967			8,219
Administrative		7,581			6,250			15,183			12,917
Depreciation and amortization		6,597			6,041			13,098			12,189
Rent		914			493			1,838			964
Property taxes		2,659			2,021			5,204			4,052
Pre-opening expenses		28			126			364			175
Other operating expenses		5,672			4,761			12,046			10,632
Total costs and expenses		60,358			54,380			130,416			120,662
Operating income		8,019			7,755			26,163			28,812
Other income (expense):
Investment income		1,878			1,473			3,761			1,819
Interest expense		(3,593	)		(3,780	)		(7,331	)		(7,659	)
Gain on disposition of property,
equipment and investments in joint
ventures		239			1,266			3,222			2,232
		(1,476	)		(1,041	)		(348	)		(3,608	)
Earnings from continuing operations
before income taxes		6,543			6,714			25,815			25,204
Income taxes		2,021			2,297			8,977			9,601
Earnings from continuing operations		4,522			4,417			16,838			15,603
Discontinued operations:
Income (loss) from discontinued operations,
net of income taxes		(31	)		(3,786	)		(594	)		3,173
Gain on sale of discontinued operations,
net of income taxes		553			70,957			4,289			70,957
		522			67,171			3,695			74,130
Net earnings	$	5,044		$	71,588		$	20,533		$	89,733
Earnings per share - basic:
Continuing operations	$	0.15		$	0.15		$	0.56		$	0.52
Discontinued operations		0.02			2.23			0.12			2.47
Net earnings per share	$	0.17		$	2.38		$	0.68		$	2.99
Earnings per share - diluted:
Continuing operations	$	0.15		$	0.14		$	0.55		$	0.52
Discontinued operations		0.01			2.20			0.12			2.44
Net earnings per share	$	0.16		$	2.34		$	0.67		$	2.96
Weighted average shares outstanding:
Basic		30,337			30,093			30,318			29,972
Diluted		30,703			30,559			30,694			30,358

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THE MARCUS CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)

	(Unaudited)		(Audited)
	November 24, 2005		May 26, 2005
Assets:
Cash and cash equivalents	$	273,632	$	259,057
Cash held by intermediaries		5,257		28,552
Accounts and notes receivable		17,545		11,615
Refundable income taxes		--		871
Deferred income taxes		5,914		5,464
Real estate and development costs		4,151		4,985
Other current assets		4,680		4,856
Assets of discontinued operations		10,129		16,700
Property and equipment - net		430,128		399,923
Other assets		52,563		55,476
Total Assets	$	803,999	$	787,499
Liabilities and Shareholders’ Equity:
Accounts and notes payable	$	11,286	$	17,785
Income taxes		4,393		--
Taxes other than income taxes		10,414		8,507
Other current liabilities		21,315		18,116
Current maturities of long-term debt		50,417		25,765
Liabilities of discontinued operations		5,364		9,514
Long-term debt		142,328		170,888
Deferred income taxes		26,883		26,614
Deferred compensation and other		18,860		16,649
Shareholders’ equity		512,739		493,661
Total Liabilities and Shareholders' Equity	$	803,999	$	787,499

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

	Theatres		Hotels/ Resorts		Corporate Items			Continuing Operations Total		Discontinued Operations			Total
13 Weeks Ended Nov. 24, 2005
Revenues	$	29,714	$	38,326	$	337		$	68,377	$	283		$	68,660
Operating income (loss)		5,143		5,280		(2,404	)		8,019		(43	)		7,976
Depreciation and amortization		3,100		3,225		272			6,597		34			6,631
13 Weeks Ended Nov. 25, 2004
Revenues	$	30,292	$	31,405	$	438		$	62,135	$	4,522		$	66,657
Operating income (loss)		5,826		3,950		(2,021	)		7,755		(6,209	)		1,546
Depreciation and amortization		2,937		2,706		398			6,041		474			6,515
26 Weeks Ended Nov. 24, 2005
Revenues	$	73,968	$	81,925	$	686		$	156,579	$	782		$	157,361
Operating income (loss)		16,826		13,560		(4,223	)		26,163		(966	)		25,197
Depreciation and amortization		6,267		6,259		572			13,098		69			13,167
26 Weeks Ended Nov. 25, 2004
Revenues	$	79,339	$	69,378	$	757		$	149,474	$	46,144		$	195,618
Operating income (loss)		19,905		12,551		(3,644	)		28,812		5,378			34,190
Depreciation and amortization		5,856		5,538		795			12,189		3,731			15,920

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. Corporate information technology costs and accounting shared services costs are allocated to the business segments based upon several factors, including actual usage and segment revenues.

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