Everyone Is Talking About Frozen and Baby Yoda. But Disney’s Secret Sauce Is Its Parks.

By Jack Hough 

Walt Disney has demolished a pair of key box office records this year—and will extend its lead when another Star Wars film hits theaters later this month. Meanwhile, its streaming service, Disney +, is off to a fast start. But even more remarkable for stock investors is what’s happening to the earnings power of Disney’s parks. 

In films, Frozen 2 recently pushed Walt Disney (ticker: DIS) over the $10 billion mark in box office receipts this year. Months ago the company topped its own record of $7.6 billion, set in 2016. The sequel will soon become the sixth Disney film to gross $1 billion this year, another record—until Star Wars: The Rise of Skywalker hits theaters Dec. 20, and surely pushes the count to seven.

Two asterisks: That doesn’t include the contribution of Fox’s (FOXA) 21st Century Fox assets bought by Disney earlier this year. And Disney gets a modest taste of the winnings from another $1 billion film this year, Sony’s (SNE) Spider Man: Far From Home.

Spider Man aside, Disney’s hits are likely to eventually turn up on the company’s new Netflix -style streaming service, Disney+, and on Monday, Credit Suisse gave a massive boost to its forecast. Previously it predicted 14.3 million subscribers by the end of the year. Now it says 20 million.

There have been no such blockbuster announcements at the parks in recent weeks—unless we count the Dec. 5 open to glowing reviews of Rise of the Resistance, the top attraction at Disney World’s Star Wars-themed expansion in Florida. The same attraction opens at Disneyland in California next month. 

There is plenty of action for the parks on Disney’s profit statement, however. In a cover story last year, we wrote that parks and films combined had surpassed television as the company’s top source of earnings, which for shareholders would help derisk the company’s move to streaming. The stock has returned 37% since then, beating the S&P 500 by eight points.

During the company’s fiscal year ended in September, operating income for parks, experiences and products, as Disney calls the unit, rose 11% to $6.76 billion, on sharply higher guest spending. Media networks, or television, still the biggest stand-alone earner, grew only 2% to $7.48 billion. The new direct-to-consumer division, which includes streaming, lost money, and studio earnings, which included some underperformers picked up in the Fox deal, declined. 

Now look forward several years. Wall Street expects income for the parks unit to approach $10 billion by Disney’s fiscal year through September 2024, easily eclipsing media networks. By then, streaming could be a significant contributor: Analysts see operating income for the division multiplying to nearly $2.5 billion that year from a small base the year before, versus $3.9 billion for the studios, up about 3%. 


In other words, for Disney, streaming is an earnings driver of the future, but parks are where the earnings growth is right now. 

That puts the spotlight on Bob Chapek, who runs the parks division. In a conversation with Barron’s earlier this year, he talked about theme parks as a compliment to Disney’s rising dominance in screened entertainment—a place where parents can turn off the screens for real-world fun with familiar characters and stories.

Upfront spending on streaming has cut into Disney’s overall earnings growth at the moment. After the current fiscal year, earnings are expected to resume growing at a double-digit pace. The shares trade at 27 times this year’s projected earnings. We asked Bill Smead, founder of Smead Capital Management and a Disney shareholder, whether the valuation gives him pause. He pointed out that Warren Buffett sold Disney stock in 1966, two years after the blockbuster Mary Poppins hit theaters, because growth had slowed: “Do you want to repeat the mistake of the greatest investor of all time?”

Write to Jack Hough at jack.hough@barrons.com

in: ella, elsa, Frozen


Everyone is talking about the

Everyone is talking about the norm and all the papers for the improvement of the guys. The guile of the activity and top paper writing service review is held for the suspects for the field. The procedure is done playing for the Madoff the classics. The structure is defamed for the Madoff the fundamental paths. the reforms are invited for individuals. chip is ensured for the reform for the next generation for the good and all positives for humans.


There's a new craze sweeping the high streets of our global village. From New York to London, Paris to Los Angeles. Whether little caesars quattro it's a tasty treat you're after or a healthy alternative to the sugary dessert you really shouldn't have, frozen yogurt is the new 'it thing'. But is it healthy?

Je vous remercie de

Je vous remercie de l'information! Je cherchais et ne pouvait pas trouver. Vous me aidé!


You said it correctly! Nice words to read out! Can u suggest to me paper writers of america at cheap rates.

best web hosting for ecommerce

I love Disney world I saw all moves my favorite one is Rd shoe and seven dwarfs.

best web hosting for ecommerce

My last movies were raise of Guardians it was amazing. jack frost and the easter bunny. I love them. thanks for making my day /.

Proven Way

Frozen is a popular animated movie. People love to watch. Getting a proven way is key to deal with essay writing projects. Writing an essay takes a lot of research work plus time. Students have to complete their essay writing projects before the deadline. Get genuine essay writing service UK to deal with essay writing projects on time.

There are a wide range of

There are a wide range of brightening medicines accessible today that should be possible at the facility, or they should be possible in the solace of your home. The How to use Interdental Burshes medicines today are far in excess of what they were before.

This sort of industry might

This sort of industry might be youthful today however impacting the universe of advertising in the future is composed and bound. The presentation of this change https://pompandcircumstancepr.com/ the start of an all new experience.

In taking a gander at a

In taking a gander at a particular test how to get more Englanders to pay their expenses on time, he includes one more fixing along with the remaining blend https://beworks.com/ by refering to a vital idea from . Cialdini creator of Influence.

Qui eum facilis

A few whiskies even have an exceptionally slight hint of salt, maybe because of the waterfront areas of most refineries. Remarkable northern suntory whiskey hibiki 21 Highland whiskies incorporate Glenmorangie and Brora.


Recommended Retail Value This worth mirrors the sum that a car seller could ask from shoppers at a genuine showroom. This worth is intended to show the https://www.toptradeauto.com/ beginning stage for exchange, like another retail cost.


Investor and Partner Disputes - for companies and business organizations, investor questions could be inescapable; there are a considerable lot of Best Family Lawyers Oakville these issues that can't be chosen the table yet through litigation.


In the event that cash is somewhat close, maybe you could give your children a stuffed lunch however send them to school with a minimal expenditure to purchase tiffin service in brampton new squeeze or milk, on the other hand send them with a container of milk or squeeze with their pressed lunch.


Anything in your home that utilizes power can be placed on the home organization and at your order. You can order your home mechanization custom home builders in mississauga framework either by voice, controller or PC.


These systems are drawn in light of the perceptions made by the physiotherapist during the instructional meetings. The physiotherapist knows where the very fitclinic competitor remains as to his adaptability, joint flexion and strength.


During the counsel you should have a sincere conversation with the imminent divorce lawyer about expenses and what you can anticipate. Normally, an accomplished business lawyers barrie divorce lawyer will require the installment of a significant retainer front and center, against which that lawyer's hourly rate and costs will be charged.

As a cook I have remembered

As a cook I have remembered tips for how to make the ideal occasion cheesecake at each endeavor, as a matter of fact you can't turn out badly assuming you adhere best desert Mississauga to my directions, regardless of whether each cheesecake recipe you have each made was a fiasco.

Prior it was simply satisfied

Prior it was simply satisfied composition however presently it is well known as SEO content composition. Anyway, there are a saas companies toronto few severe guidelines implemented on SEO content.

Everybody is discussing the

Everybody is discussing the standard and all the papers for the advancement of the males. The field suspects are held responsible for the activity's deception and top Online assignment writers. The procedure for the Madoff classics is complete. The primary routes of Madoff are used to malign the structure. Individuals are encouraged to adopt the improvements. The future generation will be changed for the better and for all human beings.

FamilyLeather is a well-known

FamilyLeather is a well-known brand that provides an exclusive collection of leather jackets for men. They design the jackets for men made out of pure leather. They produce trendy solid colors. Every product is craftsmanship along with the utmost functionality. To get the best men’s leather jackets,

accounting assignment help

If you're looking for help with accounting assignment, you've come to the right place. Our online accounting assignment service can provide you with the support you need to get through your work. Whether you need help preparing your taxes or writing a report, our professionals are here to help. So don't hesitate - give us a try today!

Thanks for your insight for

Thanks for your insight for your fantastic posting! goat milk body lotion

do my economics assignment for me

We can do it for you! Let us take all the work and stress out of completing your economics assignment. Just give us all the information we need and we'll take care of the rest. Our team of experienced professionals will provide you with top-notch assistance, so you can focus on what's important - getting a good grade. pay someone to do my economics assignment

Entertainment guessing words

It has educated me a lot, and I find this website to be pretty intriguing. In the game octordle you have 13 attempts and the duty of guessing 8 words with each word having 5 letters. You are confident in your knowledge.

Post new comment

The content of this field is kept private and will not be shown publicly.
To help us prevent spam, please prove you're human by typing the words you see here.