WDW to Raise All Buffet Prices By Almost 50%?

[gmajew]

Nothing inherently evil about stock repurchases for example My company is always buying back stock but I'm in the tech sector so it's re-issued to employees as incentives. The problem is Disney is putting almost their entire free cash flow into stock repurchases the only possible reason as you say is to inflate EPS why would Disney want that???.

Think about this Disney does not even have 30 days of cash on hand, One would think that Disney would be building up a cash reserve especially in these days of terrorism where events beyond their control could disrupt their business for months or DC mandates compensation changes they would have a buffer.

Nothing that Disney is doing at the moment makes any sense from a business perspective.

I have to go back and read the financials but I would,be shocked if they are that light in cash. But I agree complete lay with you

 

[gmajew]

Could it be the economy is not as great as we have been led to believe. I think it's yes to both.

I have been saying for the past 18 months the economy is in trouble. Believe me I have seen it and felt it in my companies. Things are not roses that is for sure

 

[JassiSidhu2000]

Good news.

Never eat there so doesn't effect me. Hopefully the extra profit means Shanghai will get the Jungle Cruise attraction.

 

[ford91exploder]

Related story for the sake of thread levity...

My Grandfather was notorious for doing this ^^^ except, he wouldn't stuff things in bags or anything. He would just grab a napkin and wrap up a roll, donut, muffin, and jam it right in his pocket. He paid for all he could eat, and no one specified a time limit. So he figured, this is my pocket muffin. Always cracked us all up. FWIW, he was a pretty successful guy and could buy many muffins if he was so inclined. He is actually the reason I have DVC at all, he was the original purchaser. So basically he left me a $1000 a year bill...

Anyway, great guy, and not disgusting. lol.

Sounds like a great guy!

 

[ford91exploder]

I have been saying for the past 18 months the economy is in trouble. Believe me I have seen it and felt it in my companies. Things are not roses that is for sure

Let's face it except for Wall St the US economy has been in in a depression CAUSED by Wall St since about 2006 for the first time since the great depression more businesses are closing their doors as opposed to opening them.

You are a small businessman, How available is credit to finance your operations or open new units, Yet Wall St can borrow money for 0 interest from the Fed.

 

[flynnibus]

Think about this Disney does not even have 30 days of cash on hand, One would think that Disney would be building up a cash reserve especially in these days of terrorism where events beyond their control could disrupt their business for months or DC mandates compensation changes they would have a buffer.

In their last earnings report they reported over 5 billion in cash+equivalents on hand. Their total cost of the entire company is roughly 9.6 billion per quarter. They are taking in revenues of almost 13 billion during that same time period. They are more than 2 billion per quarter in 'free cash flow' so there is plenty of headroom before they even start to go negative, let alone to the point you mention. You're talking about scenarios where a diversified company somehow drops to zero revenue (from 13 billion) for your 30days statement to even begin to make sense.

If their revenues dropped to zero... I think liquidity is the last thing they need to worry about, they have plenty of tangibles that could be liquidated.

 

[ford91exploder]

I have to go back and read the financials but I would,be shocked if they are that light in cash. But I agree complete lay with you

Couple of quarters ago (last time I checked) the report with the SEC showed that Disney had only about 3.5 Billion in cash and cash equivalents.

 

[ford91exploder]

In their last earnings report they reported over 5 billion in cash+equivalents on hand. Their total cost of the entire company is roughly 9.6 billion per quarter. They are taking in revenues of almost 13 billion during that same time period. They are more than 2 billion per quarter in 'free cash flow' so there is plenty of headroom before they even start to go negative, let alone to the point you mention. You're talking about scenarios where a diversified company somehow drops to zero revenue (from 13 billion) for your 30days statement to even begin to make sense.

If their revenues dropped to zero... I think liquidity is the last thing they need to worry about, they have plenty of tangibles that could be liquidated.

Thanks @flynnibus for the update, Looks like Disney is starting to build cash as a couple of quarters ago it was only 3.5 Billion in cash and cash equivalents.

 

[Wdw62114]

Another personal attack, and another violation of forum terms. You have been reported as well.

Oh no! Ive been reported! Please not that!!

 

[JohnD]

How am I supposed to read $35 to $59.99 per adult?

 

[Capsin4]

I am not sure who Disney thinks their customer is but I have been saying for a while and it was reconfirmed this visit, it is NOT us. My husband and I both are blessed to have nice jobs and live comfortably in Connecticut (not a cheap state to live) and we kept shaking our heads at the prices.

Cynics will say it's the 1%. I think the sad truth is DW is now a major tourist trap.

 

[Hakunamatata]

Cynics will say it's the 1%. I think the sad truth is DW is now a major tourist trap.

Tourist trap? Omg. One of the most researched vacation destinations and you are equating it with some roadside side show? Laughable.

 

[aladdin2007]

Good news.

Never eat there so doesn't effect me. Hopefully the extra profit means Shanghai will get the Jungle Cruise attraction.

just wow

 

[WDW1974]

I remember when Boma was $19 and I thought it was too expensive. Oh my. I've always been a person that the margins are nuts on based on what I would eat at a buffet type, but now nearly all are. It's disgraceful. These moves remind us of why there is such cynicism in this country towards corporations.

As @WDW1974 keeps emphasizing, they are acting like a company going out of business, not generating record profits. It's beyond the point of price gouging.

The scary thing ... the thing to ponder for all the mindless twits who defend every Guest/Cast/Fan unfriendly move that WDW Co. makes is all of these things are happening in a time of record-setting profits on a quarterly basis. And this has been the case for years now. So, if you run your business this way in times of feast, just what will they do when we inevitably have a famine? $200 rooms at Pop Century? $150 hard-ticket Halloween Parties? $20 quick serve burgers? Forcing Guests to buy MAGIC Bands at $25 a shot (personalized, of course) or not have any access to MM+ at all? Just what will they do when the economy tanks again?

 

[WDW1974]

Agreed. Having been in that industry ages ago, you're dead-on right with the box office. People harp on the international side being gigantic and it varies by country. The studios generally split with the theaters in the States, but many international markets bring in as low as a tenth of the gross. The math is that they brought in more profit from the consumer products licensing related to the film than the actual film by the time it's done.

Anyone in the entertainment business will tell you that despite all the bluster about foreign box office, most notably China, what really matters is domestic performance.

I remember a few years ago one of Disney's big bombs here ... maybe Prince of Persia? It wasn't Lone Ranger ... but whatever ... did very, very well overseas ... and it barely made a difference.

 

[WDW1974]

I left the company and am now on the other side of the country.

And I am sure any NDA you signed is either long dead or can be got around (I know a bit about the subject as I've been dealing with that recently), so anything you want to spill here ... or feel free to drop me a note ... I am very good at protecting privacy.

 

[Nubs70]

Anyone in the entertainment business will tell you that despite all the bluster about foreign box office, most notably China, what really matters is domestic performance.

I remember a few years ago one of Disney's big bombs here ... maybe Prince of Persia? It wasn't Lone Ranger ... but whatever ... did very, very well overseas ... and it barely made a difference.

Don't foreign profits stay outside the US?? If foreign profits are repatriated, they are subject to 34% tax.

 

[WDW1974]

Have you seen what people do at these things.... They fill plastic bags with deserts and snacks for later... They take plates with enough food for 10 people back to the tables... it is actually really disgusting...

Behavior like that only goes on because it is tolerated. Simple as that. And people know they can get away with it. ... Just like I know I can (and will) steal soda or get it for far less than Disney wants me to pay because I am a terrible human being.

 

[WDW1974]

Channeling your inner Sally Field??

Absolutely. I call her "the Goddess'' ... and while we have never met (been at events together), she knows who I am (no, not the crazy personality you see here, but the super awesome dude behind the screen.) I love that woman!

 

[gmajew]

Let's face it except for Wall St the US economy has been in in a depression CAUSED by Wall St since about 2006 for the first time since the great depression more businesses are closing their doors as opposed to opening them.

You are a small businessman, How available is credit to finance your operations or open new units, Yet Wall St can borrow money for 0 interest from the Fed.

Financing is hard to get banks don't want to lend but will when needed. I learned a long time ago banks don't want you when you need them and will fall over you when you don't.