The stock market is rallying, but Walt Disney (DIS 2.17%) is watching the parade from the Main Street curb. The family entertainment giant is trading less than 3% higher in 2023, sorely trailing the general market. The stock is now trading lower than it was when Bob Iger announced his return as CEO more than seven months ago.
We're in the thick of summer, a time when Disney is normally at its best. This is peak travel season for Disney's theme parks and cruise ships. This is also the time of year when the multiplexes are crowded. In contrast, it's generally a quiet time for media networks -- and the writer strike isn't helping -- but live sports hit it out of the park for the majority stakeholder of ESPN.
Can Disney stock get back on track? Let's go over some of the dates in the month ahead for investors to watch.
July 5
Disney World is bringing back something for on-site guests next week that it hasn't offered since before the pandemic. The Florida resort will start offering its Resort Future Stay proposal -- more commonly known in the hospitality industry as as a bounceback -- for the first time since the COVID-19 crisis rattled the lodging market.
Guests staying at a Disney resort will be offered the opportunity to book a return stay on select dates in 2024 at a 25% to 35% discount. The bouneback offers will return on July 5, going out to on-site patrons on the day they check out. They will have a week to take the theme-park operator up on its offer.
The timing makes sense. After an applause-worthy recovery from the pandemic-related shutdown, Central Florida tourist tax collections posted their first year-over-year decline in more than a year back in April. Now, Disney and its peers have been getting aggressive with their promotions. The Resort Future Stay offer is a smart way to lock in future bookings while also encouraging visitors to stay on-site in the first place to receive the perk.
Image source: Disney.
July 27
Epcot in Disney World has become home to a rotation of foodie and boozy festivals, but you never forget the one that started it all. It was 1996 when the theme park introduced the Epcot International Food & Wine Festival. Stretching from late September to late October of that year, the 30-day festival treated visitors to several kiosks featuring regional delicacies and libations. There were also informational sessions and eventually a concert series.
The festival has come a long way. It now spans across several months. The 2023 Epcot International Food & Wine Festival begins on July 27, and it will continue to entertain guests through Nov. 18. The festival that once was the key to keeping guests close in the lull between seasonally peak travel periods is now a star attraction at the resort.
July 28
It seems as if Disney has had around 999 theatrical blockbusters over the years, but as riders of the Haunted Mansion attraction at its theme parks know, there's room for a thousand. Disney gives the iconic ride a live-action reboot at the end of the month, when Haunted Mansion hits a multiplex near you.
The film comes 20 years after the original Eddie Murphy-helmed flick. The original Haunted Mansion was panned by critics and audiences alike. Despite the star power of Murphy at the time, it failed to top $200 million in global ticket sales. Disney can use a hit. Indiana Jones and the Dial of Destiny will open this weekend, but there's not another obvious blockbuster on Disney's slate until November's The Marvels.
Given Disney's well-oiled ecosystem, having the film click with audiences would be about more than just box-office receipts. The film could inspire theme-park visits to check out the ride itself. There are also merchandising opportunities in play. A hit in Haunted Mansion could also inspire the media stock bellwether to get back to making movies inspired by its original theme-park attractions.
