Disney Will Only Re-Open a Park When It Can “Cover Its Variable Costs”

(p. B14) Disney Chief Executive Officer Bob Chapek has maintained that the company wouldn’t reopen a park without at least the ability to cover its variable costs, but analysts expect more will be needed to get parks fully back into the black. Bernstein analyst Todd Juenger estimates Disney’s parks would need to be at 60% of their “normal run-rate attendance” to reach break-even on a pretax basis.

. . .

On Thursday, [June 25, 2020] UBS reported results of a survey of 2,000 U.S. consumers conducted earlier this month. In that survey, among the respondents who had cited worries about social distancing as keeping them from visiting, nearly two-thirds said they would only consider attending a Disney park once a vaccine is available.

For the full story, see:

Dan Gallagher. “The Magic Kingdom Is Losing Its Spell.” The Wall Street Journal (Saturday, June 27, 2020): B14.

(Note: ellipsis, and bracketed date, added.)

(Note: the online version of the story has the date June 26, 2020, and has the title “Disney’s Parks Need a Cure.”)

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