Search

Disney World Is Reopening This Weekend: How It Will Affect The Company

Updated: Jul 10, 2020

Disney is beginning the reopening process on July 11th starting with the popular Magic Kingdom Park.

To many Disney World fans excitement, Disney will be reopening their Florida theme park for the first time in four months beginning this weekend. The reopening will start with Magic Kingdom Park and Animal Kingdom Park on July 11th, followed by EPCOT and Hollywood Studios on July 15th. Investors of Disney are also excited, as nearly 40% of the companies revenue comes from its theme parks. This includes ticket sales, hotel bookings, restaurant meals, and gift shop purchases. However, some aspects of Disney such as hotel and restaurant space will be limited as Disney is still being cautious with its reopening (details on what will be limited can be found here). Disney is also continuing to delay its reopening of Disney Land in California.


Although being pressured not to reopen, Disney needs to generate revenue as they lost $1.4 billion in the previous quarter from COVID-19, mostly due to closed theme parks and cruises. In addition to reopening, Disney also has plans for hosting the NBA season, which will help to aid in increasing their revenue as the games will be televised on Disney's ESPN.


Disney's stock (DIS) is up more than 2% this week as anticipation for the reopening quickly grows. Analysts believe the reopening will put Disney in a position to have increased Q3 earnings from Q2, although a YoY increase is still highly unlikely.


You can view Disney's full reopening plans here: https://disneyworld.disney.go.com/travel-information/

SIGN UP TO RECEIVE UPDATES
SENT STRAIGHT TO YOUR INBOX!
  • Instagram
  • Grey Twitter Icon

TheBusinessBite © 2020

  • Instagram
  • Twitter Social Icon