Walt Disney Co. (DIS) is planning to invest $30 billion U.S. to upgrade and grow its theme parks in Florida and California.
Disney Chief Executive Officer (CEO) Bob Iger says the company plans on “investing more than $30 billion in our theme parks in Florida and California to enhance our offerings, create jobs, and support the U.S. economy.”
The big investment comes as Disney faces competition from Universal Studios’ new Florida theme park called Epic Universe, and the addition of the “World of Nintendo” rides at Universal Studios Hollywood in California.
Disney plans to spend the $30 billion U.S. over the next decade, though what exactly the investment entails is not yet known.
Analysts were quick to characterize the amount of money being spent on Disney’s theme parks and the timeline for the investment as “aggressive.”
Iger has made it clear that Disney’s theme parks are a priority and a never-ending investment for the entertainment giant.
Both Disneyland in California and Disney World in Florida became a drag on the company’s earnings during the Covid-19 pandemic when they were forced to close or operate at reduced capacity.
However, the theme parks are again growth engines for Disney, and CEO Iger says the company plans to ensure their continued success through investments.
“Our focus must always be on building for tomorrow, as much as it is on managing for today,” he said.
DIS stock has risen 9% this year and currently trades at $120.37 U.S. per share.
