Walt Disney World — even more so than Disneyland — has a tough road ahead, contends a veteran Wall Street analyst
Walt Disney World may have a more difficult time bouncing back than Disneyland once major theme parks are allowed to reopen post-coronavirus pandemic, one veteran Wall Street analyst contends.
"By our estimation, 85 percent of the attendance base in Orlando — in a normalized environment, forget about the virus for a second — comes from out of state or out of country," Miller said. "Which means you pretty much have to fly there. So, it is a two-step process with getting consumers conformable with going back to the parks. You have to be comfortable No. 1 with getting on a plane ...
"One would be hard pressed to name a business more fundamentally ill-suited for a world in which social crowding is either forbidden or , well, scary," the MoffettNathanson report read. "It's not just that they are currently closed and are therefore generating zero revenue . It's that nobody has a clue when people will feel safe enough to go back in large enough numbers to cover fixed costs even after they reopen.
Disney executives are no doubt running through all the possibilities of what may happen when the parks reopen, which some analysts have forecasted may not be until next year. THR
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