‘The Incredibles 2’ Will Be a Hit, but Not Pixar’s Next Big Moneymaker

Mr. Incredible returns in The Incredibles 2, but he may not be Pixar's biggest hero. Credit: Disney/Pixar.

At Walt Disney's (NYSE: DIS  ) annual meeting of shareholders this week, CEO Robert Iger announced plans for Cars 3 and The Incredibles 2. Pixar fans are no doubt happy to sequels for both franchises, but which one will put up better numbers when all the dollars are counted?

Host Ellen Bowman puts this question to Fool analysts Nathan Alderman and Tim Beyers in this week's episode of 1-Up On Wall Street, The Motley Fool's web show in which we talk about the big-money names behind your favorite movies, toys, video games, comics, and more.

Tim says that audiences have been waiting nearly 10 years for a sequel to the widely beloved movie, which scores 97% fresh among critics and 74% fresh among audiences at Rotten Tomatoes. At the cinema, that translated to more than $630 million in worldwide grosses on a $92 million production budget. Today, the Parr family of superheroes -- otherwise known as Mr. Incredible, Elastigirl, Violet, Dash, and Jack-Jack -- are notable for selling companion action figures for the hit "Disney Infinity" interactive video game world.

Will Lightning McQueen return for Cars 3? To this day, the franchise is a huge source of merchandising revenue. Credit: Disney/Pixar.

Nathan says that, while there's little doubt of the pent-up enthusiasm for The Incredibles 2, Disney stands to gain more from Cars 3. Why? Merchandising. As of 2011, the franchise had accounted for nearly $10 billion in product sales, putting it on par with some of the biggest toy sellers in Hollywood history, including Star Wars, Spider-Man, and Harry Potter. Another film should add to the total, blunting the impact of any softness at the box office.

Now it's your turn to weigh in using the comments box below. Are you looking forward to The Incredibles 2? What about Cars 3? Please watch the video as Ellen puts Nathan and Tim on the spot, and be sure to check back here often for more 1-Up On Wall Street segments.

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  • Report this Comment On March 23, 2014, at 5:46 PM, macoan wrote:

    Incredibles 2 is about 8 years too late. They needed to announce this long ago, so it would have been out already or like... now.

    It's a shame that movie makers don't recognize that they are over saturating the market with super hero movies - with the Avenger movies, and all their characters in their multiple movies, with the X-Men movies and their characters in their movies, and the superman/batman movies... Spiderman movies,.... Yes, they have been big money makers, but with multiple "big" super hero movies being released each year, I fear there will be a "bust" in this type of movie REALLY soon.

    Now on the plus side for The Incredibles 2, it is a cartoon "geared" more towards kids, so just about anything Pixar will do will make them money - but by the time they release it, it will make A LOT less then it could have if it was already released, or being released this year.

  • Report this Comment On March 23, 2014, at 8:48 PM, tw170 wrote:

    I think you're underestimating, Macoan, the desire for an Incredibles 2. Not only that but given the excitement for most of the superhero movies on the horizon, but there's no evidence that the market is even saturated with superhero movies, much less over-saturated. Even the failures have The only possible downside I could see is if Pixar is unable to get Brad Bird involved again.

  • Report this Comment On March 24, 2014, at 7:34 AM, TMFMileHigh wrote:

    @tw170,

    >>The only possible downside I could see is if Pixar is unable to get Brad Bird involved again.

    My understanding is that he'll be writing the film. What we don't know is whether he'll direct. I'm hoping he will, but I'd also agree that there's enough pent-up demand that the odds against failure for 'The Incredibles 2' are long indeed.

    Foolish best,

    Tim

    --

    TMFMileHigh in CAPS and on the boards

    @milehighfool on Twitter

    http://about.me/timbeyers

    http://timbeyers.me

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