alphac2005
Well-Known Member
That's what I'd love to know, how big are they? I constantly think that the well run cash (yen
) printing press is now disproportionately propping up those numbers.
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TWDC Q2 Earnings & Conference Call
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That's what I'd love to know, how big are they? I constantly think that the well run cash (yen
) printing press is now disproportionately propping up those numbers.
rael ramone
Well-Known Member
I think everyplace that they are making cuts to enhance the bottom line (like, say, the new Unpolynesian lobby) they put up a big screen TV that has a live ticker symbol for $DIS, so people can know why the beloved fountains aren't there anymore.
jlsHouston
Well-Known Member
I think this margin discussion is very significant. Realizing different industries can bear different margins for sustained profitability, I think very few will look at less than 15% as healthy. For instance in trucking which is a huge asset business that requires maintenance and capital expense to operate, the margin ranges from 20% (minimal) to 30% (making real money for reinvestment). Brokerage the rule of thumb is 15% as are similar service based industries.
I don't think a margin below 15% should be considered healthy.
BigTxEars
Well-Known Member
I don't care for crowds at all. You have a way to reduce them? I don't think there is a way, so the next best thing to try and move them efficiently. I think the new systems are a part of that. A 5th or 6th gate would be ideal, but that is not going to happen anytime soon.
asianway
Well-Known Member
I think if you look at the olc financials you can see it as an outflow cc @ParentsOf4That's what I'd love to know, how big are they? I constantly think that the well run cash (yen
flynnibus
Premium Member
It is very industry specific.. grocery stores operate on margins in the mid to low single digits!
CDavid
Well-Known Member
Yes. To reduce crowding you increase capacity. You don't have to turn the hub of the Magic Kingdom into a vast expanse of magical concrete or get people to wear colored bracelets so you can "manage their movements".
Disney has one park which is often overcrowded - but they have three others which are under utilized. Create compelling reasons (new experiences and attractions) for people to visit those other parks more of the time and you'll find that some of the Mk crowds have dissipated. In the early 90's, when (original) Epcot was less stale and more true to theme, it and the MK were within about 2 million guests in matching attendance, as opposed to a 6.5 million gap in 2012.
Then the Magic Kingdom itself needs more capacity; This means more people eating attractions like omnimovers and more places to dine. Actually, the quick-service restaurant crunch (especially at lunch) is a particularly sore spot since the MK has at least one and often two such dining facilities closed even on busy days! Yes, it would add a minor labor cost - but help immensely with the perception of an overcrowded park (and perception can be key; Get guests out of the massed hordes for lunch and they'll be a bit less likely to complain about that long, slow moving line over at Peter Pan). More importantly, this is an issue which could be addressed in short order, it's not like building a new major attraction which takes a year or more (for Disney, much more sometimes...).
The second solution is simply more attraction capacity. The Fantasyland expansion helped...to restore that land of the park back to the same number of major attractions it had twenty years ago. A few major attractions could work wonders for capacity and overcrowding issues.
Chef Mickey
Well-Known Member
I don't necessarily disagree. I've even made threads talking about VALUE of Disney versus other vacation destinations. I still think there is a good value proposition. I am a huge Disney apologist but I know much of my love is built on nostalgia. That's OK.I do not consider myself wearing rose color glasses at all. It's about the value we get for our money and how we spend our vacation time, both limited commodities. We have done WDW and a number of other vacations and we keep returning to WDW as we find it to be what we enjoy the most. To the point where we bought into it long term via DVC this year. Although I will sat DCL is a awesome second choice
The crowds at WDW are a fact of life at this point, nothing to be done to keep the folks from coming to WDW from across the world so trying to expand the parks (i.e. Avatar) or move the crowds smarter (i.e. FP+) is the way to go IMO. I wish as much as the next guy for a 5th gate, I hope to have one someday. But it not being there now is not going to keep me from enjoying the parks and all they have to offer right now.
I am not worried about margins, I do that at work. Not going to do it on vacation. The folks at Disney know a thing or two about running the parks and to me they are doing fine. They get paid to worry about margins at WDW, not me
I look at WDW at a simple choice, do I like what I get in return for my money or not? If yes then I go, if no then I don't. At this point we certainly do, and we feel like that will continue thus the DVC purchase. If at some point we do not then we will sell the DVC and move on to something else. Vacations are relaxing, not stressful so I have little tolerance for taking vacations that stress me out. One of the reason I like going to WDW is that it can be all inclusive, or at least very much so. Room, tickets and dinning all paid for in advance. With the FP+ and MBs even more so IMO. Just arrive and spend a week kicking around doing what we want to do in a place that makes us smile, a lot....
That is good stuff to us
However, I do think they will have tough decisions based on how the parks are currently operating. There is no question the current management regime has been slow to change and relied heavily on past success. They are truly standing on the shoulders of geniuses and not properly backfilling for the future.
I think this margin discussion is very significant. Realizing different industries can bear different margins for sustained profitability, I think very few will look at less than 15% as healthy. For instance in trucking which is a huge asset business that requires maintenance and capital expense to operate, the margin ranges from 20% (minimal) to 30% (making real money for reinvestment). Brokerage the rule of thumb is 15% as are similar service based industries.
I don't think a margin below 15% should be considered healthy.
jlsHouston,Today at 12:17 PM
I think you miss a very important point on the ROI. You can not include ESPN in that. TV stations are completely different. ESPN pays millions in rights fees and collects more in fees from the cable systems. If you take that out the ROI is much higher.
I don't think a margin below 15% should be considered healthy.
jlsHouston,Today at 12:17 PM
I think you miss a very important point on the ROI. You can not include ESPN in that. TV stations are completely different. ESPN pays millions in rights fees and collects more in fees from the cable systems. If you take that out the ROI is much higher.
flynnibus
Premium Member
They aren't looking at ESPN - they are looking at the segment business of P&R
PhotoDave219
Well-Known Member
jlsHouston
Well-Known Member
Really? I didn't realize grocery stores were single digit too. Truck tires are like that. Steel. But it's inventory. You know move the units. If you are moving stock, low margins can be okay.
PhotoDave219
Well-Known Member
I think you missed a very big point about ESPN from yesterday's conference call.
Analysts are worried about ESPN in that they could all of a sudden lose all of their profits if something what the hell, like a league going on strike. It will be a sudden drop off in profits…
Parks and resorts, if there's a drop off, you'll see a gradual slide over the years. Kind of like what's going on now…
jlsHouston
Well-Known Member
PhotoDave219
Well-Known Member
I guess now I have to google Wegmans....
It's the best supermarket chain out there. It's family-owned, and based out of New York. Regional chain, as far north as Boston and as far south as Virginia.
Publix would be an introduction to Wegmans… like a training supermarket.
flynnibus
Premium Member
The gross margins are in the 20-30% range.. but their profit margins are razor thin. See
http://ycharts.com/companies/SWY/profit_margin (see some competition on the right side)
Wegmen's is the Disney of Grocery... well at least what Disney used to be
jlsHouston
Well-Known Member
Okay let me say one thing here. I know so much less than many of us in this discussion about financials. I am also a recent WDW addict, so I don't have near the knowledge of TWDC history as y'all. But I understand margins. I do. I can tell you when I am selling freight and I can average out over 15% it is a good week. If I have a volume of loads to cover & my margins are over 15 %? I will collect a $5000 check in commissions easy. Fall below 15%, I will be lucky to hit $ 3000.
And that is if I am moving volume, over 10 loads. When I move less than 10 loads? Margin really affects my money. I had 9 loads at 18% last week. The only thing that saved my commissions is I had one load, one mothelode load with a 28% margin. That one load made up half my commission check, the other 8 loads were a lot of work for little reward in my perspective. I would rather have 5 loads with margin over 20% on long miles than 20 loads with 5% margins on the same miles.
And that is if I am moving volume, over 10 loads. When I move less than 10 loads? Margin really affects my money. I had 9 loads at 18% last week. The only thing that saved my commissions is I had one load, one mothelode load with a 28% margin. That one load made up half my commission check, the other 8 loads were a lot of work for little reward in my perspective. I would rather have 5 loads with margin over 20% on long miles than 20 loads with 5% margins on the same miles.
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jlsHouston
Well-Known Member
Hey. I lived on the west coast of Florida once a very long time ago and Publix rocks in my book, furthermore have you been to Houston lately to HEB? You could be broke and starving and just visit HEB daily, you'd be fine. Well fed. They have the best sample they cook up and display daily. It's like F&W daily at HEB, better on weekends but daily you can sample sushi, fish, dessert, cheese, breads baked fresh, chicken rotisserrie salad!
Chef Mickey
Well-Known Member
All retail margins are pretty terrible, unless it's a luxury brand. Retail sucks.
BigTxEars
Well-Known Member
I do think WDW became stagnat for lack of a better word, but I think they are past that now and moving forward. As a guest I feel they are making improvements that will make my visit better, now I know not everyone agrees with that but it is how I feel. I can only imagine the complexity of trying to please 40 million guest a year, that can not be an easy thing to do.