Disney Focuses on Expanding Theme Park Business: Can the Plan Deliver?

Core Insights - Disney plans to invest approximately $60 billion over the next decade, with 70% allocated to theme parks and cruise line expansion [1][10] - The company is set to construct a new Disneyland in Abu Dhabi, along with expansions in California's Disneyland resort [2][10] - The Experience segment, which includes Parks, Experiences, and Consumer Products, contributed 37.6% of total revenues in Q2 2025, with revenues rising 5.9% year over year [3][10] Investment and Expansion Plans - Disney's expansion includes a 6,000-vehicle parking space, an expanded Avengers campus, and new attractions based on Coco and Avatar [2] - The company plans to invest $30 billion specifically in Florida and California theme parks [2] Financial Performance - The Experience segment's operating income is expected to grow between 6% and 8% for fiscal 2025, driven by strong bookings for Walt Disney World [4] - Fiscal 2025 Experience segment revenues are projected to grow 2.5% year over year to $35 billion, with operating income expected to increase 6.2% to $9.84 billion [5] Competitive Landscape - Disney faces intense competition from Comcast's Universal Parks and Resorts, which recently opened Epic Universe, and Six Flags Entertainment [6][7] - Universal Parks and Resorts contributes approximately 20% to Comcast's total revenues [7] - Six Flags Entertainment aims to maximize annual visits through its extensive network of parks and hotels [8] Stock Performance and Valuation - Disney shares have appreciated 5.9% year-to-date, outperforming the Zacks Consumer Discretionary sector but lagging behind the Zacks Media Conglomerates industry [9] - The current Price/Earnings ratio for Disney is 20.53X, compared to the industry's 23.36X [12] - The Zacks Consensus Estimate for Disney's 2025 revenues is $94.89 billion, indicating a 3.86% year-over-year growth [16]