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

Three Fools discuss Disney’s slate of new Pixar films and reveal the secret to Hollywood profits.

Mar 23, 2014 at 12:00AM

Mr Incredible Syndrome

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.

Cars

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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Neither Ellen Bowman nor Nathan Alderman owned shares in any the stocks mentioned in this article at the time of publication. Tim Beyers owned shares of Walt Disney. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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