Even when Walt Disney World and Disneyland open their gates again (whenever that is) it won’t be business as usual for Disney. At least not right away.
Disney stock has been downgraded by Wells Fargo analyst Steven Cahall in a new report that also speculates that the Disney Parks won’t return to normal attendance for two years.
This could be catastrophic for the Walt Disney Company, which has historically relied heavily on Parks, Experiences and Products to bankroll the company’s other divisions.
“We don’t think Parks can get back to anything close to full capacity until testing and/or vaccines are far more ubiquitous,” Cahall told investors. He downgraded the Disney stock to equal weight from overweight, with a price target of $107.00.
There are a lot more factors to consider when it comes to re-opening the parks than simply opening the doors. Things will undoubtedly be very different at first, and we could see a slow rollout of openings with limited capacity, closed attractions and possible health screenings for Guests.
Beyond that, we have to consider where the public will be when it comes to travel. With the pandemic taking a massive toll on the economy and psyche of the country, will people be lining up to travel right away? Will they even have the money to travel at all?
Disney Won’t Open in June?
Some Disney fans foolishly believed this would be a slight two or three week hiccup, despite global evidence to the contrary. Disney knows this shutdown will last awhile, and even cut loose Cast Members who’ve been with the company for decades.
Walt Disney World and Disneyland have been closed since the middle of March, and there’s no set date yet on when we can expect the parks to re-open.
Many are speculating that Disney is aiming for a June re-opening, given that you can currently book a trip from June 1 on.
However, that might not be the case as coronavirus is still tearing its way through Florida with the worst yet to come, some models show. In fact, some are saying that while cases should be on the decline by June, the virus will still be prevalent and it still may not be safe to open.
Frankly, nobody really knows when Disney will reopen the parks. Not even Disney. This situation is unprecedented and no one knows quite what things are going to look like on the other side.
The one thing we do know is that it will be different.
[Source: The Hollywood Reporter]