Fountain & Bottled Drink, Popcorn, Pretzel, and Other Snack Item Prices Exponentially

erasure fan1

Well-Known Member
I just lean my head back and open up my mouth during one of the infamous afternoon showers to get my body's needed hydration.

As fresh as it gets!! And free too!!!
Well unfortunately Disney is working on tech so they can monetize this very problem. Too much money is being left on the table. I'm sure they will have an all you care to drink rain water plan coming soon, so don't worry.
 

disneyflush

Well-Known Member
Your numbers are wrong. Due to loopholes in the old tax law, very few, if any, companies paid the 35% tax rate. I see you used 33% in your analysis.

"The company is expected to see its effective tax rate lowered from 33% to about 21%, according to Steven Cahal, an analyst at RBC Capital Markets."
- article link below


Based on the 2016 annual report (used to ensure it was completely under the old tax rate), Disney paid an effective federal tax rate of 22.44% on $14.018 billion in Domestic income. If you include the "deferred federal income tax," which I'm not sure if old deferred income tax is included in the current tax then they paid 30.8%. The new corporate tax rate is 21%.

"CompanyTickerMedian effective income-tax rate - past five reported quarters Walt Disney Co 33%"
- article link below


Using the higher rate that includes deferred income tax, that's a savings of 9.8% on $14.018 billion in income. They would have paid $1.374 billion less under the new tax rate. You were only off by $1.2 billion in your "gift" calculation.

(I feel your numbers pride and I respect it but my numbers weren't meant to withstand a certified financial audit. I spent 15 minutes looking them up for a Disney message board post so I didn't run them by the SEC or anything. If someone is putting off a stock purchase based on DisneyFlush's amazing message board post I'm super flattered. No one is being swayed in either direction by anyone's posts on here. No one's mind is changing whatsoever. None of these threads have that power. This forum works best as a source for vacation information. That is its sweet spot. This is not SeekingAlpha. Disney got a bunch of money from the tax cuts and could use it for raises. The end.)

Among your other assumptions, (which I admitted in the post were like pretty wide ranging assumptions) you are calculating the pay increase just for WDW workers and ignoring that the Walt Disney Company has 195,000 employees. (We are discussing the pay increases for the cast members. Are all 195,000 cast members making under $15 per hour and now getting the raises?) You are assuming that the only ones to get a pay increase are the 74,000 WDW employees.

"The move will affect some 38,000 Disney service employees represented by the unions — most of whom make less than $11 an hour, Jeremy Haicken, president of the Local 737 union, tells MONEY. (To be fair, I did double the amount of employees affected by the raise which is quite generous in an estimate as you know.)" - link below

Additionally, a pay increase actually costs the company 7.65% more than the increase to the employees due to the increased payroll taxes. That takes your increase estimate up to $637 million. I'm sure that other divisions of the company will be getting raises as well so this number is even higher.

(Comfortably under.....$1.374 billion, si?)

If you are going to make an argument that Disney is an evil greedy corporation getting a gift from the government to fill their Scrooge McDuck money bin, at least use some semblance of accurate calculations.

(I did)

I don't even know how you made the leap that an 11% tax rate (your number) reduction would somehow increase free cash flow by 25%.

"That could boost free cash flow by about 25%, which in turn, leaves a lot of room to invest in the future.

"We'd expect Disney to have ample powder for investing heavily in direct to consumer content to make those products globally competitive as it rolls in FOXA assets," Cahal said in a note to clients." - link below

What does the market cap have to do with anything other than to start your analysis with a big number to show how evil and greedy Disney is? The market cap has absolutely nothing to do with taxes, income or cash flow.

(I spent about 15 minutes on that post man. It wasn't my doctoral thesis. Your objection to form is sustained.)

So let's call a spade a spade. You invented numbers out of thin air to make a point about how evil Disney is getting a gift and not sharing enough of it with their employees.

(This is a pretty pathetic statement. We can still meet for coffee though, no?)

I will concede the point that they didn't need to delay the benefit by 3 years but that was agreed to by the Union.

(I agree this was agreed to by the union. It doesn't change anything I said though.)

If you are a member of a unionized work force, you have to accept the downside that the company is going to negotiate hard on absolutely everything related to compensation.

http://time.com/money/5378529/walt-disney-world-minimum-wage-contract/
https://www.marketwatch.com/story/t...y-a-windfall-under-trumps-tax-plan-2017-09-29
https://www.businessinsider.com/dis...oost-that-will-help-it-take-on-netflix-2018-2


I'll be happy to discuss this with you via my inbox. I see I've triggered you and its honestly just a forum where we can discuss Disney with fellow Disney vacationers. I spent another 12 minutes of my time responding to this post because it feels like you want me to recognize you so I fully give you that now. I see you DisneyCane.
 

Patcheslee

Well-Known Member
That actually isn't true. They removed the option to get a dessert with quick service and gave an extra snack instead. If you use the snack to get a dessert anyway with every QS you still ultimately end up with the same amount of snack credits you would have had on the old plan.
The menu had a combo option that was done away with.
 

matt9112

Well-Known Member
I think (most) everyone pays attention to value even when they're on vacation. Even the people in this thread who say they can afford the onsite prices don't like the price increases because it makes the onsite food seem to be not worth what you're paying. No one likes that. I think @Sirwalterraleigh even categorized this as a separate negative [edit: to WDW attendance] category, there were the category 2 people who were priced out of their affordability and there were the category 3 people who could afford the prices but who felt taken advantage of and so who were going to go less or stop. And no one is looking down on anyone here. Even the small subset of people hoping for lowered crowds are really just looking for a silver lining in this dark cloud of price increases. And the only sin of the one person who mentioned the possible silver lining of "maybe this means there will be less rude drunk people?" is that they jump to the conclusion that rude drunk people might have less money than the polite considerate people. (Looking at my relatives they might be right)

Anyway, I didn't want you to feel targeted by your fellow forum members.

One last thing on the subject: I remember reading the book The Millionaire Next Door many years ago. There are some flaws to the study presented in it, but the concepts and ideas certainly resonated with me. The take-home was that most "rich people" (as represented by the titular "millionaire") aren't the idle rich who are wealthy by birth. Neither are the bulk of them fat-cat corporate executives or hedge fund managers. Instead, the majority were small-business owners who drove a older model used car and were very careful with their money - rich through hard work and savings. Now this doesn't capture the "one percent", but it does capture a lot of the upper middle class people that I know - shop owners, skilled tradesmen, engineers, and technologists. One thing I learned in life is that you only need to be poor once in order to understand the value of a dollar.

Now onto my favorite subject, the brown bag lunch at WDW. :) Even when we were brown-bagging it 10-15 years ago, I did the math and figured out there was no limit to how fancy your brown bag lunch could be. It would always be a better value than the QS lunches. You could bring fois gras, brie, and bread made from imported french flour and still save money. You could certainly have jamon Iberico and real Swiss emmentaler and still save money (though it might be a crime if you made a sandwich and put mustard on it). But back to reality, I could have an unlimited brown bag budget at Publix and still save money compared to eating in the parks. Unfortunately as I said in an earlier post, this led to the orgy of impulse purchases and good intentions during our grocery run at the beginning of every trip. :)

The other thing we do some of is park-hop, which enabled us to eat outside the parks while we are hopping. But I agree with you, mostly what we did was hold our noses (at the malodorous prices) and ate in the park when necessary. By the end of the trip I'd gotten quite good at living in a state of price denial where I just wouldn't look at the prices and we would just order what we wanted, billing everything to the room.

i wanted to take a moment to simply cherish this work of art you have written. this may be one of the best posts in literacy on this forum. subject matter aside anyone who reads this should feel better about the world and themselves. The choice of words and writting style are impeccable and of the highest standard (far beyond my own) that have ever graced the pages of this forum. may this retort forever enshrine such brilliant writting.
 

matt9112

Well-Known Member
If you ordered the combo back when the QS entitlements included a dessert, were you allowed to get an extra dessert with the combo? If not, my point is still valid.

i dont seem to remember a combo but i did two vacations when the QS included a dessert and you picked your entree and drink as well as a dessert for every credit.
 

BigThunderMatt

Well-Known Member
i dont seem to remember a combo but i did two vacations when the QS included a dessert and you picked your entree and drink as well as a dessert for every credit.

Yep. This is the way it used to be. But due to feedback where guests didn't necessarily always want a dessert with their QS meal they took the dessert portion off the QS option and just gave people an extra snack each day.
 

matt9112

Well-Known Member
Yep. This is the way it used to be. But due to feedback where guests didn't necessarily always want a dessert with their QS meal they took the dessert portion off the QS option and just gave people an extra snack each day.

"extra" at disney world lol sure......curious how many snack credits dont get used on any given basis.
 

matt9112

Well-Known Member
Quite a few. But you'd be surprised a lot of people just use them to splurge on snacks at the gift shop on checkout day and take them home with them.

my point was its a win win for disney there not forcing people to get the dessert so they dont need to make so many (cuts cost) and potentially they go to waste and dont get used.
 

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