Walt Disney (DIS 0.18%) has been going through major challenges since the pandemic began, although the nature of them keeps changing. Its most recent turbulence was turnover at the top, although the reinstatement of CEO Bob Iger was cheered by investors, who are hoping he can restore growth.

Three years ago disruptions were just starting for the entertainment giant. Prior to that, revenue and net income were both growing nicely. Where will Disney be three years from now?

Popular parks

Disney's theme parks were a major casualty of the beginning of the pandemic, but they've come back in full force and are thriving. Demand is so strong that Disney has been able to raise prices -- more than once -- for all sorts of services.

Parks were the company's largest segment prior to the pandemic, and for some time, its only segment that was growing sales and profits. It's a unique business that generates tons of money for the company -- $28 billion in fiscal 2022 -- and doesn't really have competition. Although there are plenty of other theme parks around the world, none are as large, in terms of both size and number, as Disney's. Its themes, based on Disney characters, are also impossible to replicate in rival parks and experiences. 

Parks segment sales increased 73% in 2022, although that was still a rebound jump. Short of another pandemic or other world catastrophe that will close park gates, investors can expect the parks segment to continue to be a major source of revenue and profits three years from now.

Strong streaming

Streaming was Disney's savior when parks were shuttered, demonstrating incredible growth while people were stuck at home and Disney was in the process of rolling out Disney+ globally. However, it's now become its bane as it eats up profits from other business segments in its rollout, which is still ongoing. After a staggering $1.5 billion operating loss in the 2022 fiscal fourth quarter (ended Oct. 1), which in part led to former CEO Bob Chapek's ousting, management pledged to get spending under control. It showed some tepid progress in the 2023 first fiscal quarter with a $1 billion operating loss, which was 78% more than the year before.

Three years from now, this is likely to be all but forgotten. Streaming isn't going anywhere, and Disney will have premium and ad tiers and bundles and probably some iterations in between. It should be generating revenue and profits -- management reiterated that it expects Disney+ to be profitable by the end of 2024. The service will be fully rolled out, which means it won't be adding meaningful subscribers, but between ad revenue, price hikes, and satisfied customers renewing subscriptions, it should continue to be an industry leader. 

Mega-bucks movies 

The third part of the Disney trifecta is its hit films. These generate the characters and series that are so important to Disney's model. Marvel studios, in particular, has been a valuable asset to the Disney studio lineup, with another hit, Guardians of the Galaxy Vol. 3, released just last week to more than $100 million in opening weekend ticket sales. Disney is also releasing its remake of The Little Mermaid as a live-action film at the end of this month. It's these kind of franchises that power Disney's business and provide it with years of growth opportunities. They contribute to new theme park rides and add new content for the streaming networks, in addition to the millions of dollars they generate in ticket sales.

In three years, there will be more films and more content, likely from the powerful franchises that are fueling growth today.

An entertainment powerhouse

In short, Disney should be demonstrating higher sales through more of its effective business model. There are definitely things that could go wrong; Iger is only meant to stay on for two years, and investors will react -- positively or negatively -- to the choice of a successor. A new CEO may also make mistakes. There's also the possibility that Disney+ will not become profitable as expected, which will send Disney stock plummeting.

For now, Disney stock is finally showing some momentum, up around 19% so far in 2023 and outperforming the market by more than double. Now might be a good time to take a position.