The past few years the economy has been rough.
Even just going out to eat for a family of four can be incredibly expensive.
So naturally, people are wary of where they are spending their money.
For example, if going on vacation might be a stretch, they may not visit a place that has questioned their values and go some place else that’s cheaper.
That is what is facing Disney.
Disney recently reported weaker-than-expected results for its theme parks for the quarter ending on June 29. Revenue rose just 2 percent from the same time last year, reaching $8.4 billion, while operating profit dropped by 3 percent, settling at $2.2 billion. The company attributed this decrease to a “moderation of consumer demand” and escalating costs, both of which surpassed their projections. They cautioned that this waning demand could affect their performance in the forthcoming quarters.
Over the past decade, theme parks have evolved into a vital financial aspect for Disney. They have been powering Disney’s bold expansion into streaming and counterbalancing the declining profits from their television sector. Last year, Disney Experiences, encompassing theme parks and cruise ships, constituted 70 percent of Walt Disney Company’s operating profits.
Despite the concerns, Disney remains dedicated to enlarging its parks and enhancing its Cruise Line. They intend to invest around $60 billion over the next ten years in these ventures. However, fears are rising that the U.S. economy could be moving towards a recession.
Disney has also encountered turbulence from investors like Nelson Peltz, who has criticized Disney’s streaming strategy and succession planning. The company’s stock price has been trending downwards since April, which may rekindle activist opposition.
Look, if finances are tight families are going to go to places where cast members arent’ dressed in drag and spend what little disposable income they have other places.
Matter of fact Disney has been pretty cocky.
In 2021 Walt Disney Company CFO Christine McCarthy said that food prices wouldn’t change but portions would decrease and that would be “good for some people’s waistlines.”
In June of 2024 a report was released that food prices at Disney World have gone up 61% in the last 10 years.
Things are finally coming to a head for Disney.
People are refusing to go to the parks and their streaming business stinks because of the programing.
It’s all starting to snowball.
