Disney faces challenges as customers push back against increased prices at its theme parks. Despite a 3% rise in revenue, Disney's operating income from U.S. parks fell by 6% in the second quarter of 2024. The company attributed this to higher costs from inflation and a greater-than-expected drop in consumer demand. Disney anticipates this trend may continue, potentially impacting future earnings. CFO Hugh Johnston noted a shift in behavior, with lower-income customers feeling pressured while higher-income guests travel more internationally.
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00:00It's Benzinga, and here's what's on the block.
00:03Disney is facing challenges as customers push back against increased prices at its theme
00:07parks.
00:08Despite a 3% rise in revenue, Disney's operating income from U.S. parks fell by 6% in the second
00:13quarter of 2024.
00:15The company attributed this to higher costs from inflation and a greater-than-expected
00:19drop in consumer demand.
00:21Disney anticipates this trend may continue, potentially impacting future earnings.
00:25CFO Hugh Johnston noted a shift in behavior, with lower-income customers feeling pressured
00:30while higher-income guests travel more internationally.
00:33For all things money, visit Benzinga.com.