Please ensure Javascript is enabled for purposes of website accessibility

Disneyland Is Almost Ready for Out-of-State Visitors

By Rick Munarriz - Updated May 27, 2021 at 12:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Disney's original theme park resort will let non-California residents back in starting on June 15.

For 413 days, no visitors clicked through the turnstiles of Disney's (DIS 4.68%) original theme park. And even after the Disneyland resort in California reopened on April 30, admissions were limited to that state's residents.

But there's finally a light at the end of the Space Mountain tunnel for fans living in the other 49 states -- or anywhere else on the planet. The world's largest theme park operator announced on Wednesday that it will allow all guests into its gated attractions in Anaheim starting on June 15. 

Donald Duck sweeping up Main Street U.S.A.  in Disneyland.

Image source: Disney.

State of mind 

Disney is a well-diversified media company, but its theme parks are a key part of its operations most of the time. In the company's fiscal 2019, the business segment that includes its global portfolio of theme parks accounted for 38% of total revenue and 45% of operating profits.

Naturally, it was a different story over the past year, when the pandemic required it to temporarily shutter those theme parks. Even now as they reopen -- only Disneyland Paris remains closed, and it's due to come back on June 17 -- the popular destinations are limiting guest counts and paring back ride capacities to allow for more social distancing. In short, don't book a trip to Southern California next month expecting to visit Disneyland without securing your tickets and park reservations first. 

Disneyland in California initially restricted its visitor counts to 25% of its normal capacity. That's a sweet deal for the guests who get in -- they can enjoy a day at the theme park with reasonable wait times for attractions. But it's not so sweet for shareholders. Disney's Parks Experiences and Products segment hasn't returned to  profitability yet, though at least in Florida, Disney World is no longer losing as much money as it was when the park was closed. 

Things will get better from here. The Orlando park went from an initial capacity of 25% to 35% a few months after reopening. CEO Bob Chapek recently said that Disney World's daily admissions are now being capped at a level that's above 35% of normal capacity, but he didn't reveal the actual number of daily park reservations that the Florida resort is offering. 

The timing couldn't be better for these two coastal resorts to be easing up on restrictions. We're heading into the summer travel season, which has always been a busy time of the year for Disney's theme parks. Now, with people itching to get away from home -- and in many cases, ready to spend the money they were unable to use on summer getaways last year -- premium-priced destinations like Disneyland and Disney World are obvious candidates to benefit.

A trip to Disneyland this summer was still going to be a hard sell for folks in much of the country, but once June 15 rolls around and people can walk through its gates without having to brandish a California state ID, we can expect a wave of ticket-buying and reservation-booking for the park's on-site resorts.

Disney shares recently took a hit after the media giant posted disappointing Disney+ subscriber growth. So it should be comforting for investors to see another revenue stream start picking up some of the financial load in the next couple of quarters. 

Rick Munarriz owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$117.69 (4.68%) $5.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.