Get ready to rock out with your favorite Christmas songs in an epic race through space! On May 27, 2022, EPCOT’s newest ride (and first-ever roller-coaster) opened, and fans have been raving about it ever since. The much-anticipated Guardians of the Galaxy: Cosmic Rewind took the place of Ellen’s Energy Adventure and had been taking guests on a twisty turny adventure through the galaxy since it opened. Fun fact: coming in at 500 million dollars, Guardians of the Galaxy: Cosmic Rewind is the most expensive roller-coaster ever built!
Earlier this fall, it was announced that Cosmic Rewind would receive a holiday overlay, and much to fans’ excitement, it would include a new song in the soundtrack. Imagineer Wyatt Winter said, “This is an all-new, unique mashup song taking a lot of your favorite holiday songs we all know and love and creating a new song with it … Imagineers were able to do some custom lyrics.” Other than this teaser about the new song, not much is known about the Guardians of the Galaxy: Cosmic Rewind – Holiday Remix overlay yet, except that it will be holiday-themed. Not much to go on.
We have been on the edge of our seat waiting for new information about the rides festive makeover and the wait is almost over! Just announced today the overlay will begin on November 25, 2022. This is an exciting development for Disney World because they don’t often get holiday overlays like Disneyland does (i.e the famous Nightmare Before Christmas overlay at The Haunted Mansion). It will be nice to have a festive-themed ride to enjoy at EPCOT this season. You’ll be able to catch the overlay until December 30, so there is plenty of time to experience the ride in all of its holly jolly goodness.
If you can’t get enough of the Guardians of the Galaxy, also releasing on November 25 is the Guardians of the Galaxy Holiday special, only on Disney+! Get ready to laugh as the crew ventures to Earth to kidnap Kevin Bacon as a Christmas gift for Star-Lord!
On November 8, Disney held its Fourth Quarter Earnings Call, and things did not go as well as the company had hoped. Even though Disney recorded a staggering $28 billion in profit, revenue-per-share for Disney+ fell below Wall Street expectations. Disney Parks, Experiences, and Products also underperformed. Not long after the call, after-hours trading began on Wall Street, and, the next morning, it was revealed that Disney experienced a 13% drop in its stock value.
Now, just days after the Earnings Call, Disney CEO Bob Chapek has announced that Disney will begin a “targeted hiring freeze”. That is in addition to job cuts that will also soon take place.
As we begin fiscal 2023, I want to communicate with you directly about the cost management efforts Christine McCarthy and I referenced on this week’s earnings call. These efforts will help us to both achieve the important goal of reaching profitability for Disney+ in fiscal 2024 and make us a more efficient and nimble company overall. This work is occurring against a backdrop of economic uncertainty that all companies and our industry are contending with.
While certain macroeconomic factors are out of our control, meeting these goals requires all of us to continue doing our part to manage the things we can control—most notably, our costs. You all will have critical roles to play in this effort, and as senior leaders, I know you will get it done.
To be clear, I am confident in our ability to reach the targets we have set, and in this management team to get us there.
To help guide us on this journey, I have established a cost structure taskforce of executive officers: our CFO, Christine McCarthy and General Counsel, Horacio Gutierrez. Along with me, this team will make the critical big picture decisions necessary to achieve our objectives.
We are not starting this work from scratch and have already set several next steps—which I wanted you to hear about directly from me.
First, we have undertaken a rigorous review of the company’s content and marketing spending working with our content leaders and their teams. While we will not sacrifice quality or the strength of our unrivaled synergy machine, we must ensure our investments are both efficient and come with tangible benefits to both audiences and the company.
Second, we are limiting headcount additions through a targeted hiring freeze. Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams.
Third, we are reviewing our SG&A costs and have determined that there is room for improved efficiency—as well as an opportunity to transform the organization to be more nimble. The taskforce will drive this work in partnership with segment teams to achieve both savings and organizational enhancements. As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review. In the immediate term, business travel should now be limited to essential trips only. In-person work sessions or offsites requiring travel will need advance approval and review from a member of your executive team (i.e., direct report of the segment chairman or corporate executive officer). As much as possible, these meetings should be conducted virtually. Attendance at conferences and other external events will also be restricted and require approvals from a member of your executive team.
Our transformation is designed to ensure we thrive not just today, but well into the future—and you will hear more from our taskforce in the weeks and months ahead.
I am fully aware this will be a difficult process for many of you and your teams. We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow.
Thank you again for your leadership.
-Bob
Since he stepped into the position of CEO of The Walt Disney Company in 2020, Chapek has become known as a CEO who cuts costs and raises prices. Guests visiting Disney Parks are being vocal about paying more while getting less for nearly everything. Chapek is being held responsible for getting rid of the free FastPass system and instituting Disney Genie+, which varies in cost per day.
During the Earnings Call, CFO Christine McCarthy said that the company was continuing to look for ways to cut costs — leading to the hiring freeze and job cuts. The last time McCarthy spoke at length about cost-cutting, she talked about Disney changing food vendors — opting to go with cheaper ones — and cutting food portions while keeping costs where they are or increasing them.
Disney has not responded publicly to the leaked memo.
Earlier this year, a ranch owned by Walt Disney came up on the market for sale and was listed for $71 million. Pocket change, right? It seems no one else agrees, either. It’s been months, and the ranch hasn’t been sold. To put it in context, Real Estate News says that the average home in the United States is on the market for just 22 days before it sells. With the market the way it is currently, usually, a seller has their pick of multiple offers to choose from. Not so with the Disney Wyoming Ranch.
The property just lowered its price by $10 million. It’s now on the market for a cool $61 million. If you’ve got the cash, you could own a piece of Disney history! From Architectural Digest, “About 90 minutes from Jackson Hole and half an hour from Yellowstone National Park, Diamond G Ranch outside Dubois, Wyoming, is surrounded by national forestland, with 11,000-foot-high mountain peaks framing it on three sides. The 5,000-acre property includes a main lodge with five bedrooms and a huge stone fireplace, as well as two log cabins, a barn with a second-floor office, and a 1,500-square-foot manager’s house with three bedrooms.”
The property, which has been called the most secluded property in the lower 48 states, was held by Retlaw Enterprises, a holdings entity Walt established to oversee the rights to his name and to manage Disneyland attractions. Does the holdings company’s name give you Yensid vibes? It should. “Retlaw” is Walter spelled backward.
The property’s inability to sell is puzzling, given how absolutely gorgeous it is. We know there’s a Disney lover out there somewhere that would love to own this piece of Disney history. This would be the perfect piece of land to live out your John Dutton dreams, too (ok, that’s not a Disney reference but… if you know, you know). We just have one request- remember who told you about it and invite us for a visit after you buy it!
On November 8, The Walt Disney Company held its 4th Quarter Earnings Call. During the call, Disney CEO Bob Chapek offered a very positive outlook on the numbers, calling this year some of Disney’s “best storytelling yet” and reports revealed that Disney had made a mind-boggling $28 billion profit. Chapek also revealed that Disney added more than 12 million subscribers to its Disney+ and streaming platforms worldwide and that the streamer was still on target to be profitable by 2024.
Disney Parks, Products, and Experiences were some of the most profitable areas for Disney, but that could simply be because Disney is charging sky-high prices and offering less, so, naturally, Guest spending will be up.
Even though Disney+ added millions of subscribers, the “revenue-per-user” came in under what analysts were predicting. Disney also shared that Disney+ subscriber growth is expected to fall in the next quarter. Disney’s consumer products numbers also came in below expectations, which caused Disney’s stock to take a massive hit after the Earnings call. The stock market as a whole took a slight hit, but Disney seemed to get hammered.
Here’s more on Disney’s underperformance and what could have caused it, via MarketWatch:
Disney executives blamed a number of factors for the revenue miss, including lower content sales because they had fewer theatrical films on the calendar; underperformance of the parks and media divisions; and seasonality of its fourth quarter, which tends to be the lowest for margins.
In a conference call Tuesday afternoon, though, Chief Financial Officer Christine McCarthy suggested that revenue and profit growth will slow to single digits on a percentage basis in the current fiscal year, missing Wall Street’s expectations. Analysts’ average revenue projection for Disney in the new fiscal year suggested revenue growth of about 13.9% and operating-income growth of roughly 17.4%, according to FactSet.
After-hours trading saw Disney’s stock take a 10% drop before finally closing down 6.8%. When regular trading ended, the stock was only down .5%, so the Earnings call is most likely responsible for the hard hit.
It has been a rough year for Disney, whose stocks are down more than 35% from last year’s numbers.
We are continuing to closely monitor Hurricane Nicole. While this schedule could change, we are planning for a phased reopening beginning tomorrow, Nov. 10, based on current projections.
THEME PARKS
Walt Disney World Resort theme parks will reopen in a phased approach beginning at noon tomorrow, Nov. 10. Planned theme park operating hours for tomorrow, Nov. 10, are:
Magic Kingdom Park: Noon to 6 p.m. (Mickey’s Very Merry Christmas Party is scheduled for 7 p.m. to midnight.)
EPCOT: 1 p.m. to 9 p.m.
Disney’s Animal Kingdom: 1 p.m. to 7 p.m.
Disney’s Hollywood Studios: 2 p.m. to 10 p.m. (Fantasmic! will not be presented tomorrow, Nov. 10, due to the production setup.)
Transportation to theme parks will begin 30 minutes prior to the scheduled reopening time.
Reservations for bookable experiences within the theme parks will resume at the scheduled park reopening time.
DISNEY SPRINGS
Disney Springs will begin a phased reopening at noon tomorrow, Nov. 10.
Disney Bus transportation to Disney Springs will resume at 2 p.m. tomorrow, Nov. 10.
WATER PARKS AND MINI GOLF
Winter Summerland Miniature Golf and Fantasia Gardens Miniature Golf remain closed tomorrow, Nov. 10, and may reopen Friday, Nov. 11.
Disney’s Typhoon Lagoon will remain temporarily closed tomorrow, Nov. 10, and may reopen Friday, Nov. 11 (Disney’s Blizzard Beach is currently closed).
RESORTS
Disney’s Fort Wilderness Resort and Campground is anticipated to reopen tomorrow, Nov. 10, following an assessment of storm impacts. Hoop-Dee-Doo Musical Revue will be canceled tomorrow, Nov. 10.
The Treehouse Villas at Disney’s Saratoga Springs Resort will reopen for Guests checking in tomorrow, Nov. 10.
At this time, all other Walt Disney World Resort hotels remain open to Guests.
As previously shared, character breakfasts at Disney Resort hotels will not include characters tomorrow morning, Nov. 10.
Update: Nov. 9 at 11 a.m.
As of 11 a.m. Wednesday, Nov. 9, Walt Disney World is planning to make the following operational adjustments as we continue to prioritize the safety of our cast members and guests during the storm:
THEME PARKS
Walt Disney World Resort theme parks will have a phased closure today, Nov. 9, beginning at 5 p.m. and will remain closed through tomorrow morning, Nov. 10. Resort Guests are encouraged to enjoy food and beverage options at the theme parks prior to returning to their Disney Resort hotel. Theme parks will likely not reopen at their regularly scheduled time tomorrow, Nov. 10.
Disney’s Animal Kingdom: Closing today, Nov. 9, at 5 p.m. with last dining reservations at 5 p.m.
Disney’s Hollywood Studios: Closing today, Nov. 9, at 6 p.m. with last dining reservations at 6 p.m.
Magic Kingdom Park: Closing today, Nov. 9, at 7 p.m. Last dining reservations for Be Our Guest Restaurant, The Diamond Horseshoe, Liberty Tree Tavern and Cinderella’s Royal Table will be at 6 p.m., and last dining for all other dining reservations will be at 6:30 p.m.
EPCOT: Closing today, Nov. 9, at 7 p.m. Last dining reservations for Monsieur Paul, Space 220 Restaurant, Akershus Royal Banquet Hall and Garden Grill Restaurant will be at 6 p.m., and last dining for all other dining reservations will be at 6:30 p.m.
WATER PARKS AND MINI GOLF
Disney’s Typhoon Lagoon will temporarily close tomorrow, Thursday, Nov. 10. (Disney’s Blizzard Beach is currently closed.)
Winter Summerland Miniature Golf and Fantasia Gardens Miniature Golf will close early today, Nov. 9, at 7 p.m. and will remain temporarily closed tomorrow, Thursday, Nov. 10.
STAR WARS: GALACTIC STARCRUISER
The Star Wars: Galactic Starcruiser voyage scheduled to begin tomorrow, Nov. 10, will be canceled. We are contacting Guests with reservations.
RESORTS
Guests staying at Disney’s Fort Wilderness Resort & Campground will be required to depart by 3 p.m. today, Nov. 9. We are contacting Guests with reservations to help them find alternate accommodations. Hoop-Dee-Doo Musical Revue will be canceled tonight, Nov. 9.
Guests staying at the Treehouse Villas at Disney’s Saratoga Springs Resort will be required to depart by today, Nov. 9, at 3 p.m. We are contacting Guests with reservations to help them find alternative accommodations.
At this time, all other Walt Disney World Resort hotels remain open to Guests.
Character breakfasts at Disney Resort hotels will not include characters tomorrow morning, Nov. 10, so we can accommodate more Resort Guests staying at these locations for breakfast.
DISNEY SPRINGS
Disney Springs will close early today, Nov. 9, at 7 p.m., with last dining reservations at 6:30 p.m. Disney Springs will remain closed through tomorrow morning, Nov. 10.
Disney Bus transportation from Disney Springs will operate until 8 p.m. today, Nov. 9.
EVENTS & SPECTACULARS
As previously shared, extended evening theme park hours at Magic Kingdom will be canceled today, Nov. 9.
To align with modified theme park hours, nighttime spectaculars will be canceled today, Nov. 9, including Disney Enchantment at Magic Kingdom Park, Harmonious at EPCOT, and Fantasmic! at Disney’s Hollywood Studios.
Ferrytale Fireworks: A Sparkling Dessert Cruise will be canceled tonight, Nov. 9.
Guests may reschedule their trip or cancel their stay with us; any customary cancellation fees will be waived. Travel agents can now modify or cancel online for the impacted period and fees will be automatically waived.
