Disney Reopens Parks but Financial Impact Might Not Be Worth It

“The situation in Florida is pretty worrisome,” Dr. Ashish Jha, director of the Harvard Global Health Institute, told the Today Show

Walt Disney World reopened over the weekend, the same day that Florida broke a national record for new COVID-19 cases in one day. After losing $1 billion in its parks business last quarter, it’s fairly clear why the company would want to reopen its parks. Wall Street analysts, however, don’t expect opening the park will have a substantial financial impact.

“We do not believe that it really matters all that much whether or not a park opens in June, July or August,” B. Riley FBR analyst Eric Wold wrote in a note to clients. “We acknowledge some benefits to getting season pass or membership holders back to the park and/or taking advantage of families increasingly staying at home. We would expect these stocks to be valued on attendance rebound expectations for 2021 and 2022 as opposed to anything to come in Q3 or Q4.”

Become a member to read more.
Trey Williams

Trey Williams

Film Reporter covering the biz • trey.williams@thewrap.com • Twitter: @trey3williams