Disney Park Profits up to $2.2b

[jtwibih]

I'm not so sure we should expect much of a change when the new CEO comes in. Unfortunately, this is the way of the world now. Cut costs to drive the stock price. That coupled with consumers being almost solely price driven when making a decision to purchase has caused alot of companies to cut back just enough to maintain a perception of quality. While vacation destinations have to be careful, companies like Disney can do whatever they want because they have the reputation of quality. They are living off a perception of quality now since MANY of the amenities from the past have gone away while prices go up. The discounts are still there and cover pretty much the entire year since they know charging rack rates will lead to a lot of empty rooms.

Obviously I still buy into this quality since I continue to go but there is a breaking point. I can't tell you exactly what point that is but I have one.....

 

[peyjax]

Remember Iger is gone in about a year... Give or take

And there's no way he stays - due to the roy Disney stockholder rebellion of 2003

That is fascinating...At least to me.

I find this stuff fascinating but I am not a stockholder and I am not up to par on my Disney Corporate knowledge. Can ya give me the cliff notes version of the the stockholder rebellion?

I just see the decsions that have been made at DW while he has been around and seen a huge decline in service and ammenties (yes, i know not profit )but that is just one aspect of the company and does not sound as if it is relevant to 2003?

 

[manning]

Can't argue...

We still like the look and feel of EPCOT... The hotels, blizzard and typhoon... The lakes and waterways...

But your point is dead on.

I can remember not TOO long ago coming out of restaurants and thinking "yeah, that was a little pricey...but it was fantastic"...almost every place and time

No if we an average meal the response is a shocked "hey...that was actually decent".

It seems to me that in their attempts to make the place more exclusive/profitable...they've actually made it far more ghetto. Which will lead to longterm erosion.

The problem of casting a net too large while squeezing every nickel on the molecular level.

Which is where the rubber bands are going...ultimately.

That's what happens when bean counters get involved. That's what brought down Chrysler in the '50s - '60s. Had a friend get a car from them in early 70s. Said the first time he got a rust bucket right from the factory.

Different venue but the Chrysler situation is taking place at Disney.

Have we hit the $20.00 hot dog al a carte yet ? Condiments and bun extra.

 

[Rumors Rocks]

That's what happens when bean counters get involved. That's what brought down Chrysler in the '50s - '60s. Had a friend get a car from them in early 70s. Said the first time he got a rust bucket right from the factory.

Different venue but the Chrysler situation is taking place at Disney.

Have we hit the $20.00 hot dog al a carte yet ? Condiments and bun extra.

Not quite but soon approaching.

http://blogs.disney.com/oh-my-disney/2013/07/01/the-mac-cheese-hot-dog-is-a-thing-of-beauty/

 

[manning]

Capitalism has its good and bad side. Done right almost everyone wins. Done wrong (greed) and the house of cards collapses.

As far as a stockholder rebellion. Slim to none. Vast majority of stocks are held in mutual funds, and the fund managers job is to maximize profit for fund holders. Roy Disney was extremely lucky to get accomplished what he did. He had to go to every major funds to convince them to vote against Eisner. He didn't get Eisner out ( was re-elected CEO) but did push him to leave sooner.

 

[crazy4wdw]

Remember Iger is gone in about a year... Give or take

And there's no way he stays - due to the roy Disney stockholder rebellion of 2003

That is fascinating...At least to me.

Iger's contract was extended through June 30, 2016.

 

[lockedoutlogic]

Iger's contract was extended through June 30, 2016.

Right... I had forgotten...

Something about the " delicacy" of what was going on in 2015

I guess they need "investor" confidence when they have a customer tracking system, a park attached to Walt Disney merchandise sweatshops in shanghai, a rushed into production Star Wars movie that will sink or swim the whole merchandising empire, and a big expansion in Florida based on a movie where 90% of the population can't remember a single character from it...

Oh I kid...


(Ok...not really...that's all actually true)

 

[lockedoutlogic]

Capitalism has its good and bad side. Done right almost everyone wins. Done wrong (greed) and the house of cards collapses.

As far as a stockholder rebellion. Slim to none. Vast majority of stocks are held in mutual funds, and the fund managers job is to maximize profit for fund holders. Roy Disney was extremely lucky to get accomplished what he did. He had to go to every major funds to convince them to vote against Eisner. He didn't get Eisner out ( was re-elected CEO) but did push him to leave sooner.

Oh...just to be clear...I don't think there would ever be another rebellion against Iger or anybody else...but as you said, what roy e did was create a climate and a history at Disney management where nobody will "keep hanging around" too long...as Eisner did.

And you're right...because he had more clout as the "face of Disney" than anybody since his uncle and to a lesser extent his dad...he was the only person that could force change... And he did succeed in board restructuring and Eisner giving up and leaving... But be had to get those hedge managers to go along with it to get the 40% disapproval...starting with the powerful California public employees pension fund.

It worked...as detailed in Disney War...and the company went on an upswing through today...

But it seems one of his biggest complaints - "timidity in the theme parks" - could be making a return.

And again...no clear succession plan.
Staggs and Rasulo are dead ends and everybody knows it