Send me real-time posts from this site at my email

Disneyland Will Reopen on April 30

Walt Disney's (NYSE: DIS) two theme parks in California, Disneyland and Disney's California Adventure, will open on April 30, after being closed for more than a year due to pandemic-related restrictions. CEO Bob Chapek made the announcement in an interview on CNBC's Squawk Alley.

"We've seen the enthusiasm, the craving for people to return to our parks around the world," Chapek told Julia Boorstin. "We've been operating at Walt Disney World for about nine months, and there certainly is no shortage of demand." Chapek also said attendance would initially be restricted to 15% capacity and visitors would be required to wear masks and observe other health-related precautions.

Image source: Disney.

The parks, experiences, and products segment was Disney's biggest segment in fiscal 2019, responsible for $26.2 billion, or roughly 38% of the company's total revenue. As a result of the pandemic, revenue for the segment slumped 37% to $16.5 billion in 2020, or just 25% of revenue.

Even at a reduced capacity, the existing parks that were open helped generate "a net incremental positive contribution," according to CFO Christine McCarthy. This means that revenue generated covered the cost of opening the parks, while still producing a profit. Obviously, the more visitors that come through the turnstiles, the greater the profit potential.

Disneyland has been closed just a few times in the theme park's storied history. The park shuttered for a national day of mourning in 1963 after the assassination of John F. Kennedy. It was also reportedly closed in 1994 after nearby Los Angeles was struck by the 6.7 magnitude Northridge Earthquake. Disneyland reportedly reopened the following day after rigorous inspections. The Happiest Place on Earth was also padlocked on the day of the Sept. 11 terrorist attacks in 2001.

On each of these occasions, the park was closed for 24 hours and reopened the following day. This pandemic-related closure marks the longest in Disneyland's history.

10 stocks we like better than Walt Disney
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of February 24, 2021

Danny Vena owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policy.


Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue