SJN1279
Well-Known Member
Agreed 100 percent. It was Rocky 3 with a horrible twist ending.
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A Spirited Valentine ...
- Thread starter WDW1974
- Start date
Chef Mickey
Well-Known Member
Oh sure, no question those have helped, but I was pointing out it wasn't just buybacks. Those alone certainly haven't helped to the tune of $6b incremental after tax profit per year.
Sure, there have been acquisitions but 4 times more profit isn't just because of the acquisitions either. Disney has some merits on its own of course and a lot of the profitable was engineered through cost cutting and raising prices too.
GoofGoof
Premium Member
Haven't been in there...but I can imagine
ford91exploder
Resident Curmudgeon
Did they i dont think so as studios only get 25-35 % of box office receipts the remainder goes to distributors and theater operators
Plus whatever studios get from licensing revenue
Kman101
Well-Known Member
Haven't been in there...but I can imagine
It's calmed down but oh boy was it ... interesting
Chef Mickey
Well-Known Member
Iger definitely failed us on domestic park expansion, but I don't think a 5th gate should even on the list until they fix the 4 they have. The last thing Orlando needs is another park to let flounder. Maximize what you have (think MK in Anaheim) at EVERY park and then think about a 5th.Disney used to invest heavily in its U.S. theme parks until 9/11:
View attachment 212464
Prior to Bob Iger becoming CEO, Disney spent less than $5B in stock repurchases over a 30-year period. In Iger's first 11 years as CEO, Disney has spent more than $55B in stock buybacks.
As explained in Profits Without Prosperity, stock repurchases such as the ones pushed by Iger are probably the single greatest anchor on the U.S. economy.
As @GoofGoof suggests, Disney almost certainly would have built a 5th theme park in Orlando by now if not for the massive stock repurchases. Remember, prior to Disney's Animal Kingdom, the longest period between theme parks was 11 years. We are now approaching 20 years since DAK was built with no 5th Gate on the horizon, despite severe overcrowding at the parks.
Crowd problems are a result of running out of things to do at EPCOT and DHS at 2pm.
Bairstow
Well-Known Member
The only way Disney could conceivably open a fifth gate in this next decade is if it's a "premium" half-day experience park with interactive and role-playing elements. Enough rumors have leaked out at this point to deny that Disney is at least working on some such project, potentially tied to Star Wars or some other sort of immersive IP. There was also a strong rumor that the show "Lost" was being tossed around as the basis for a premium role-playing experience park.
Personally, I'd love to see Disney dip their toes in this. Discovery Bay has shown the viability.
Chef Mickey
Well-Known Member
Regarding buybacks...Disney used to invest heavily in its U.S. theme parks until 9/11:
View attachment 212464
Prior to Bob Iger becoming CEO, Disney spent less than $5B in stock repurchases over a 30-year period. In Iger's first 11 years as CEO, Disney has spent more than $55B in stock buybacks.
As explained in Profits Without Prosperity, stock repurchases such as the ones pushed by Iger are probably the single greatest anchor on the U.S. economy.
As @GoofGoof suggests, Disney almost certainly would have built a 5th theme park in Orlando by now if not for the massive stock repurchases. Remember, prior to Disney's Animal Kingdom, the longest period between theme parks was 11 years. We are now approaching 20 years since DAK was built with no 5th Gate on the horizon, despite severe overcrowding at the parks.
I think you're oversimplifying things when it comes to the worthiness of buybacks in general. I've read what you referenced, but that is a separate issue. Companies answer to shareholders, not the US Economy. Buybacks are an effective way to return cash to shareholders without imposing a tax burden on them such as through a dividend.
Buybacks aren't always a lose lose scenario. They make sense at one price and don't at another. Perhaps Disney approved too much and the money could have been used for capex. I do agree the lack of capex spending has been ridiculous, but it was just not spent domestically.
As an AAPL shareholder, I love the buyback (biggest in history) because it makes my shares more valuable over time and every time shares are retired, the next round has a greater impact due to the lower share count. Disney trades near all time highs, so its tough to argue shares were repurchased at overvalued levels and DIS stock has outperformed the broader market by 4X the last 10 years. It's been one of the best Dow stocks to own, period.
The sickening part isn't the buybacks and the way Iger runs the company. He's objectively been great for shareholders but TERRIBLE for people like us. He's done his job very well and that's why hes still there.
I think your real issue is that the company is publicly traded and shareholders drive decision making. It sucks for fans, but it's reality.
I actually hope AAPL buys Disney and lets them get a little crazy.
deWild
Well-Known Member
How can guests justify spending money on a ticket to Hollywood or Epcot right now? Because I've felt exactly this same way for a long time now.
Chef Mickey
Well-Known Member
You can't.
But I've always argued Disney is a package deal. You have to park hop and do the best each has to offer. I still think EPCOT and DHS have many things worth doing, but just need MORE.
It never should have gotten this bad.
I still think even as sad as the state is today for those 2, Disney is still a fantastic value.
truecoat
Well-Known Member
I'm not sure they really care. Volcano Bay is at capacity pretty much every day before noon.
GoofGoof
Premium Member
From what I've read it seems like they had a lot of issues in the beginning so they reduced the max capacity allowed in the park while they ironed out the issues. I read somewhere the max capacity was reduced to half what they originally targeted but I'm sure someone with much more knowledge of Universal can give specifics. I think it's a smart move by Uni. They realized there was a problem and addressed it instead of just continuing to allow guests to be unhappy. I'm sure guests who arrive at noon are frustrated to be locked out but it's better than having too large crowds and everyone miserable. For the bean counters they can't be happy that there are more guests willing to pay but are being restricted due to operating issues. It's a lot of potential money lost.
I'm not sure how to fix the problems without significantly expanding the park. One of my biggest complaints about the Orlando area waterparks in general is that on a hot summer day you wait in a lot of lines and it's miserable baking in that sun. One of the most interesting aspects of VB to me was the no line option. Unfortunately, when the crowds are too large that option doesn't work as well when your return time is 3+ hours or more. Maybe they can gain some efficiency by sending guests down faster but I think the long term plan has to be to expand the number of attractions. Not sure if there is room for that. Another option is to up the cost of the AP that doesn't block out the summer for VB. From a business standpoint if you have guests willing to pay $70 to go to a waterpark for the day but it's filled to capacity with AP holders you are losing out. Maybe to keep locals happy they could also add back in an after 4pm option for APs that are blacked out. Waterparks are usually crowded in the morning and less so in the afternoon and evening. This way you keep everyone happy and make more money in the process.
Soarin' Over Pgh
Well-Known Member
I agree with maximizing existing parks before adding a fifth gate. At this point there really is no reason DHS isn't larger and adding to an already well-received rides roster. It was left to rot like a carcass in the sun. It's gone way too long between adding lands and attractions and it shows. Epcot shouldn't be in such condition that it needs to rely on overcharging customers on specialty food and beverages year round. There's no reason that a brand new cartoon got shoehorned into a 25 year old ride system. For that matter there shouldn't be 20 year old films sans nostalgia - they should have been kept current and more up to date... Epcot has been let fall into an almost museum like quality with plenty of gift shops and pricey nibbles of "gourmet" food.
I really quoted this for your last line as I wholeheartedly agree and tip my Pirates hat to you. I think it's a twofold problem of running out of things to do besides spend money or being tired of cooking in the heat at Epcot. There's a real climate issue evident there- it really needs more shade and seating. A bus ride from DHS to the MK does wonders when it's 90 degrees out with 100% humidity. As does so many indoor attractions and stores ($$$$$$$) there.
ford91exploder
Resident Curmudgeon
Prioritizing the guest experience over revenue!, Didn't there used to be a company founded by an old dead guy named Walt, That used to do the same thing...
ford91exploder
Resident Curmudgeon
NFL has become the worlds largest stroller parking lot
VJ
Well-Known Member
“Once a man has tasted freedom he will never be content to be a slave. That is why I believe that this frightfulness we see everywhere today is only temporary. Tomorrow will be better for as long as America keeps alive the ideals of freedom and a better life. All men will want to be free and share our way of life. There must be so much that I should have said, but haven’t. What I will say now is just what most of us are probably thinking every day. I thank God and America for the right to live and raise my family under the flag of tolerance, democracy, and freedom.” –Walt Disney
Happy Fourth!
Happy Fourth!
EricsBiscuit
Well-Known Member
There's no question that Disney and by extension UNI are great value. Look at ticket prices for something like Wicked and contrast the dollars per hour. It's ridiculous! Nothing beats Disney when it comes to value and quality.
Edit: I spent 18 hours at MK yesterday (was there an hour before park opened + magic hours) and go to WDW every week. $925 / 52 = $17.79 / avg of 10 hours per trip = $1.79 per hour! Factor in discounts, food, merchandise, free parking and voila it's worth it.
Edit: I spent 18 hours at MK yesterday (was there an hour before park opened + magic hours) and go to WDW every week. $925 / 52 = $17.79 / avg of 10 hours per trip = $1.79 per hour! Factor in discounts, food, merchandise, free parking and voila it's worth it.
EricsBiscuit
Well-Known Member
UpAllNight
Well-Known Member
Sorry if previously addressed....but are Themeparkinsider getting backhands off Universal? Their latest awards are a joke...Krakatau winning best rollercoaster?? Volcano Bay best new theme park?? (Obviously didn't cross reference that one with tripadvisor, where it's still getting torn a new one)
I do enjoy reading it but this is all very suspicious.
I do enjoy reading it but this is all very suspicious.