Shanghai Disneyland is the first park to reopen after 3.5 months of being closed. The park will require social distancing, masks, and only allow 24,000 visitors at a time compared to its standard 80,000 capacity.
Disney (DIS - Free Report) is hoping that a successful reopening in Shanghai will enable them to reopen more of these cash cows around the world. Disney Parks make up a substantial portion of the business’s bottom-line, with Park, Experiences, and Products accounting for roughly 40% of the firm’s profits.
Parks’ closures had a $1.4 billion impact on the firm’s March quarter earnings, and analysts are predicting that pandemic could cost Disney’s parks $5 billion in 2020.
The company is eager to reopen its theme parks. Shanghai’s park reopening is a trail-run for the rest of Disney’s 12 global parks.
Disney shares are down 26% for the year, but once more parks are scheduled to reopen, I suspect this stock will see a strong rebound.
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