- Aug 5, 2015
Not too impressed with DIS stock myself. Bad performer. They might want to be more concerned about their product and step away from the "pencil boys," as Walt Disney himself called accountants.In December, the Orange County Register published an article entitled Disneyland is Quietly Revoking Annual Passes of Guests Who Buy and Resell Souvenirs (see: https://www.ocregister.com/2018/12/07/disneyland-is-quietly-revoking-annual-passes-of-guests-who-buy-and-resell-souvenirs/ ). Disneyland has been quietly revoking the annual passes of so-called “personal shoppers” and others who buy collectible merchandise inside the parks and then resell it, either to individuals or online, according to observers and people who say it happened to them.
Yesterday, the Los Angeles Times published an article entitled Disneyland Resort Tickets and Parking Prices are Going Up Again, as Much as 25% (see: https://www.latimes.com/business/la-fi-disneyland-prices-increase-20190106-story.html ).
Regarding the reason for the increase, Disneyland Resort spokeswoman Liz Jaeger said, “We continue to provide our guests with a variety of ticket offerings to meet their needs, while helping us to spread visitation, better manage demand and deliver a great experience.” To help manage the crowds, the resort adopted “demand” pricing in 2016, with lower prices on days when demand is lower and higher prices on weekends and holidays. An analysis by The Times showed that the new prices did not shorten attraction wait times.
In a recent interview with Barron's, Bob Iger said that he does not think about the price of churros when he visits the parks. Back in October, the price point of churros increased $1.75, from $4.50 to $6.25. This is nearly a 40% price increase for a product that is of no thought to the CEO of TWDC.
TWDC is no different from other Fortune 500 companies, such as Apple, Exxon Mobile, and Delta Airlines. Its actions should never be surprising because TWDC is a publicly traded conglomerate, constantly seeking to increase its bottom line.
Regarding the magic, visit the Walt Disney Family Museum, in San Francisco, CA, and read a few unauthorized texts by former Disney insiders. The magic died with Walt Disney. At the Walt Disney Family Museum, for example, there is an exhibit that speaks to Walt's love of benches and the need for them at Disneyland. There are recent quotes, from Disney executives, about benches being removed from the parks because guests should be purchasing food and beverage or merchandise, not sitting.
Edit: I am realizing that we do not own stock in DIS. This is interesting because we own stock in other companies whose products we love. But DIS has never attracted us.