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Disney's (DIS) California Theme Parks State Reopening Dates
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Disney’s (DIS - Free Report) Parks, Experiences and Products division recently announced that Disneyland will reopen on Jul 17, nearly three months after its unprecedented closure due to the novel coronavirus outbreak.
Pending state and local government approvals, Disneyland will join Disney California Adventure in opening its gates in mid-July. Moreover, Downtown Disney District will open back up a week earlier on Jul 9, while Disney’s Grand Californian Hotel & Spa and Disney’s Paradise Pier Hotel will reopen on Jul 23.
Due to the ongoing pandemic, Disneyland’s maximum capacity will be cut to comply with governmental requirements and social distancing measures. Details are yet to be announced.
Markedly, when Shanghai Disneyland reopened in May, the 80,0000 capacity park allowed only 20,000 and pledged to gradually increase.
Year to Date Performance
Coronavirus Clouds Disney’s Prospects
Disney shares have declined 15.5% in the year-to-date period primarily due to negative impact of coronavirus outbreak. But as parks are reopening, the stock is expected to see a strong rebound.
Disney Parks make up a substantial portion of the company’s bottom line, with Park, Experiences, and Products accounting for 30.8% of the firm’s revenues.
Per Disney, the coronavirus pandemic hurt segmental operating income by roughly $1 billion in second-quarter fiscal 2020, while segment revenues decreased 10.2% year over year to $5.54 billion.
Disney also experienced the impact of low ad sales similar to social media companies like Twitter and Facebook . While Twitter withdrew its full-year guidance due to the coronavirus impact on advertiser demand, Facebook admitted that its ad business has taken a huge beating in countries severely hit by the novel coronavirus.
Safety Measures to Curb Coronavirus at Parks
While outlining the reopening of the parks at Florida’s Walt Disney World, which is set to begin from Jul 11, the company specified that guests will undergo temperature checks and wear masks to contain the spread of coronavirus.
Additionally, the park has put a temporary pause on new ticket sales and Annual Passport sales and renewals. Parades and nighttime shows will not occur during the July reopening, and will return at a later date. Character meet and greets will also be on hold.
Moreover, attendance will be managed through a new theme park reservation system that will require all guests, including annual passholders, to obtain a reservation for park entry in advance.
However, hours before Disney’s announcement, California health officials put Los Angeles, neighbor to Orange County where Disney’s Anaheim park is located, on a watch list for where coronavirus cases may soon rise again.
The increase in case numbers is an expected consequence of stay-at-home orders being lifted and more parts of the economy reopening. Nonetheless, the company has been benefiting from the growing popularity of Disney+ streaming services amid lockdown.
Disney+ Solid User Base to Boost the Top Line
Disney+, which was launched on Nov 12, 2019, has 33.5 million paid subscribers within its fold. As of May 4, the company estimated Disney+ subscriber base to be 54.5 million, triggered by the pandemic-related physical distancing norm.
Solid content portfolio is also expected to help Disney pose a challenge to Netflix (NFLX - Free Report) , Apple TV+ and Amazon prime video.
Apart from the upcoming Artemis Fowl, Disney reshuffled its upcoming movie release dates with Mulan now set to open on Jul 24 followed by Jungle Cruise on Jul 30. The much-anticipated Marvel Studios’ Black Widow is scheduled for Nov 6 while The Eternals will hit the screens on Feb 12, 2021.
Moreover, Disney+ will be available in Japan during June, followed by the Nordics, Belgium, Luxembourg and Portugal in September and Latin America toward the end of 2020.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Disney's (DIS) California Theme Parks State Reopening Dates
Disney’s (DIS - Free Report) Parks, Experiences and Products division recently announced that Disneyland will reopen on Jul 17, nearly three months after its unprecedented closure due to the novel coronavirus outbreak.
Pending state and local government approvals, Disneyland will join Disney California Adventure in opening its gates in mid-July. Moreover, Downtown Disney District will open back up a week earlier on Jul 9, while Disney’s Grand Californian Hotel & Spa and Disney’s Paradise Pier Hotel will reopen on Jul 23.
Due to the ongoing pandemic, Disneyland’s maximum capacity will be cut to comply with governmental requirements and social distancing measures. Details are yet to be announced.
Markedly, when Shanghai Disneyland reopened in May, the 80,0000 capacity park allowed only 20,000 and pledged to gradually increase.
Year to Date Performance
Coronavirus Clouds Disney’s Prospects
Disney shares have declined 15.5% in the year-to-date period primarily due to negative impact of coronavirus outbreak. But as parks are reopening, the stock is expected to see a strong rebound.
Disney Parks make up a substantial portion of the company’s bottom line, with Park, Experiences, and Products accounting for 30.8% of the firm’s revenues.
Per Disney, the coronavirus pandemic hurt segmental operating income by roughly $1 billion in second-quarter fiscal 2020, while segment revenues decreased 10.2% year over year to $5.54 billion.
Disney also experienced the impact of low ad sales similar to social media companies like Twitter and Facebook . While Twitter withdrew its full-year guidance due to the coronavirus impact on advertiser demand, Facebook admitted that its ad business has taken a huge beating in countries severely hit by the novel coronavirus.
Safety Measures to Curb Coronavirus at Parks
While outlining the reopening of the parks at Florida’s Walt Disney World, which is set to begin from Jul 11, the company specified that guests will undergo temperature checks and wear masks to contain the spread of coronavirus.
Additionally, the park has put a temporary pause on new ticket sales and Annual Passport sales and renewals. Parades and nighttime shows will not occur during the July reopening, and will return at a later date. Character meet and greets will also be on hold.
Moreover, attendance will be managed through a new theme park reservation system that will require all guests, including annual passholders, to obtain a reservation for park entry in advance.
However, hours before Disney’s announcement, California health officials put Los Angeles, neighbor to Orange County where Disney’s Anaheim park is located, on a watch list for where coronavirus cases may soon rise again.
The increase in case numbers is an expected consequence of stay-at-home orders being lifted and more parts of the economy reopening. Nonetheless, the company has been benefiting from the growing popularity of Disney+ streaming services amid lockdown.
Disney+ Solid User Base to Boost the Top Line
Disney+, which was launched on Nov 12, 2019, has 33.5 million paid subscribers within its fold. As of May 4, the company estimated Disney+ subscriber base to be 54.5 million, triggered by the pandemic-related physical distancing norm.
Solid content portfolio is also expected to help Disney pose a challenge to Netflix (NFLX - Free Report) , Apple TV+ and Amazon prime video.
Apart from the upcoming Artemis Fowl, Disney reshuffled its upcoming movie release dates with Mulan now set to open on Jul 24 followed by Jungle Cruise on Jul 30. The much-anticipated Marvel Studios’ Black Widow is scheduled for Nov 6 while The Eternals will hit the screens on Feb 12, 2021.
Moreover, Disney+ will be available in Japan during June, followed by the Nordics, Belgium, Luxembourg and Portugal in September and Latin America toward the end of 2020.
The strong slate of movies along with surging popularity of Disney+ bodes well for this Zacks Rank #3 (Hold) company once the impact of the coronavirus subsides. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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