Disney (DIS) Unveils Zootopia-Inspired Theme Park in China
Disney’s DIS much-anticipated Zootopia-themed land, inspired by the Academy Award-winning Walt Disney Animation Studios film, has officially opened, offering assistance in navigating the wealth of information about it.
With its 2016 release, Zootopia emerged as one of Disney's blockbuster hits, grossing more than $1 billion globally and earning the prestigious Academy Award for Best Animated Feature Film. Now, this beloved story comes to life with the unique craftsmanship of Disney's Experiences.
This new Zootopia experience immerses visitors in the vibrant and wild world of the animated film, capturing the essence with sights and sounds directly from the Walt Disney Animation Studios movie.
As the world's first Zootopia-themed land, it introduces guests to iconic locations such as Mane Street, the lively billboards of Savannah Central and familiar spots like Zootopia Central Station, which contribute to the rich and colorful ambiance.
The choice of Shanghai Disney Resort as the location aligns with the park's overarching principle of "Authentically Disney, Distinctly Chinese," thus enhancing the storytelling aspect of Zootopia.
The opening of Zootopia on Dec 20 marks a significant milestone, bringing this cherished connection to life in Shanghai through a one-of-a-kind themed land.
The Walt Disney Company Price and Consensus
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Disney Bets on Theme Park Prospects
DIS’ Parks, Experiences and Products division has been a growth area for the company amid challenges in its traditional media and streaming businesses. The division's 13% increase in revenues during the fourth quarter and its consistent growth over the past few quarters are noteworthy.
In the last reported quarter, the rise in operating income at Disney's domestic parks and experiences can be attributed to growth in the division, particularly at the Shanghai Disney Resort and Hong Kong Disneyland Resort, which saw an increase in income due to guest spending growth from higher average ticket prices and increased attendance.
The company's capital expenditure in fiscal 2023 was roughly $5 billion and it expects to spend $6 billion in fiscal 2024 on experiences.
Disney is actively engaged in enhancing its hotel and resort facilities through updates such as improvements, renovations and new themes to elevate the overall guest experience. Ongoing projects involve the redesign of attractions like Splash Mountain and Space Mountain across different resorts. Additionally, Disney is exploring innovative concepts at Magic Kingdom Park by focusing on Disney villains and offering a captivating departure from the traditional theme centered on heroes and princesses.
These initiatives underscore Disney's dedication to the ongoing evolution and expansion of its parks and resorts, aiming to boost segment revenues by delivering enchanting experiences for visitors. These endeavors are anticipated to contribute to the company's revenue growth in the forthcoming quarters.
The Zacks Consensus Estimate for DIS’ fiscal 2024 revenues is pegged at $91.99 billion, indicating year-over-year growth of 3.48%. The consensus estimate for earnings is pegged at $4.38 per share, indicating year-over-year growth of 16.49%.
Shares of Disney, which currently carries a Zacks Rank #5 (Strong Sell), have gained 5.1% year to date compared with the Zacks Consumer Discretionary sector’s 18.2% rise due to tough competition from Six Flags Entertainment SIX, Cedar Fair FUN and Comcast CMCSA.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Six Flags Entertainment, recognized as the largest theme park company and water park operator in North America, manages a total of 27 distinct theme parks and water parks throughout the region. With impressive revenues, the company continues to be a significant player in the theme park industry and plans to expand internationally.
Cedar Fair, boasting 17 theme parks in Canada and the United States, has an expansive portfolio of parks. Cedar Fair stands out with two facilities dedicated to sports enthusiasts and an impressive lineup of 11 resorts. This diverse offering contributes to Cedar Fair's prominent position in the theme park and entertainment sector.
Universal Studios, owned by Comcast, may not have an extensive number of parks compared with some of its competitors but its appeal remains robust, especially with the popularity of the Harry Potter franchise. The theme parks associated with the wizarding world have significantly contributed to Universal's strong attendance figures across its five locations in the United States and Asia.
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