Disney Parks to cut back hours in September
Former Walt Disney Imagineer Eddie Sotto says Disney will get the magic back, but until hospital practices are out of the parks, people will not flood back there.
It might be a long road to recovery for Disney's theme parks, according to some analysts.
Continue Reading Below
Due to the coronavirus pandemic, the company's parks across the world temporarily closed their doors. Many have since reopened, but Disneyland in California is still closed, and the others aren’t operating at full capacity.
Obviously, closing down and limiting the number of guests has hurt revenue at the parks. But now, analysts for Deutsche Bank predict that 2021 may be another “lost year” for the theme parks, the Orange County Register reports.
|DIS||WALT DISNEY COMPANY||133.92||+0.62||+0.47%|
The analysts did, however, upgrade Disney’s stock due to the company’s strong performance in other areas (including its Disney+ streaming service).
GOV. NEWSOM COMMENTS ON REOPENING OF CALIFORNIA THEME PARKS: 'MAKING PROGRESS'
According to the Deutsche Bank report, Disney’s theme parks will likely start to see “substantial improvement” in FY 2022 and a return to full earnings (based on pre-COVID numbers) in FY 2023.
A major factor that the analysts believe will impact the parks’ recoveries is the availability of an effective COVID-19 vaccine.
“We continue to believe that a widely available treatment and/or vaccine is required for a normalization to full earnings power at the parks," the analysts wrote.