Frozen closed at a serious financial loss - given how Broadway is struggling mid-pandemic, how expensive an Encanto Musical would be to produce, and the fact that Frozen on Broadway was the biggest sure-thing they'd ever seen and it flopped (sadly), I doubt we see Disney immediately rush to bring Encanto to New York.
For all its success and pedigree, Encanto is not nearly the runaway hit Frozen was, and Frozen really struggled to put butts in seats on Broadway.
I could see Disney developing a production for licensing and seeing how that does before seriously considering bringing Encanto to Broadway. And if they do it'll be several years out when the market can bear it. But Disney Theatrical has learned very much the hard way that not every property they're interested in will make them money, and I think they're gonna go back to developing more for smaller stages before taking another big swing on Broadway.
Disney isn't interested in taking risks here - if it's opening on Broadway it's because they expect it to be an absolute monster hit. That Frozen didn't pull it off shook them and has them recalibrating.
