This OTC Toy Stock Has Outperformed Hasbro And Mattel In The Last 5 Years Thanks To Paw Patrol

The two best known toy companies in the U.S. are Hasbro Inc HAS and Mattel Inc MAT. Both toy companies have struggled with their share price over the last five years with Hasbro shares up 19% and Mattel shares down 35%. A smaller Canadian toy company has had a better return over the last five year and owes most of its success to the hit “Paw Patrol” franchise.

What Happened: In 2013, “Paw Patrol” was introduced by Spin Master Corp SNMSF to children and quickly became a hit around the world including on Nickelodeon, a segment of ViacomCBS Inc VIAC.

There have been over 180 episodes of “Paw Patrol” and several spin-off series launched by Spin Master over the course of eight seasons. A theatrical animated movie was launched this last week.

“Paw Patrol: The Movie” grossed $13 million domestically over the weekend while also premiering on Paramount+ for free to subscribers. The movie was produced by Spin Master and received an A- rating from CinemaScore.

“Paw Patrol: The Movie” grossed $12.8 million in 33 international markets over the weekend and has a foreign box office total of $21.5 million since its release. The movie has grossed a total of $34.5 million worldwide.

Related Link: Disney’s Free Guy Holds Off Paw Patrol To Remain Top Dog At Box Office

Why It’s Important: Spin Master had its IPO in 2015 and saw shares rise as “Paw Patrol” became a hit as one of the top kids’ shows and toy brands.

Shares of Spin Master Corp are up 70% over the last five years on the OTC, outperforming rivals Hasbro and Mattel. Spin Master shares also trade on the Toronto Stock Exchange under the ticker TOY.

Paw Patrol was named the top new toy brand by the NPD Group in 2015 and has been one of the most profitable brands for Spin Master.

Other Spin Master brands include Bakugan, Hatchimals, Rubik’s Cube and Mighty Express, a show airing on Netflix Inc NFLX.

Spin Master reported record profitability in the second quarter and saw revenue up 39% to $390.8 million.

“We are well positioned for the second half with an amazing toy line up, growth in our digital games franchises and the highly-anticipated release of Paw Patrol: The Movie, our first foray into feature films,” Spin Master CEO Max Rangel said.

A new line of toys based on the movie was released by retailers in early August with over 30 products featured across vehicles, playsets, figures and plush categories.

The success of Paw Patrol could be in the early innings with Spin Master betting heavily on the brand going forward.

A March presentation listed Paw Patrol getting a franchise expansion in 2023 and three new themes in 2022. Paw Patrol will celebrate its 10 year anniversary in 2023 and will be featured heavily by the company.

Photo: Courtesy of spinmaster.com