April isn't typically a very prolific month for Walt Disney (DIS -0.23%), but things will probably be different this time. There's a big shareholder meeting taking place on Wednesday. And it's not the only thing that Disney shareholders will be watching that day.
There's a contested proxy battle and some horror on the silver screen. Meanwhile, Disney's theme parks will have some new moves to keep their turnstiles clicking. Let's take a closer look at the things to watch in the month ahead.
April 3
Investors have probably been circling Wednesday on the calendar for a couple of months now. It's the day of Disney's annual shareholder meeting, but there will be some more fireworks than usual. A pair of activist groups are trying to shake up the boardroom, offering up a couple of nominees to replace current directors.
Disney stock hit another 52-week high last week. CEO Bob Iger has momentum, and it's hard to see shareholders voting for change. However, Disney has been pushing its shareholders to vote in recent weeks. Disney's also been lining up public endorsements of prolific shareholders. Is the House of Mouse trying so hard because it fears it will lose?
The more likely scenario is that Disney knows it will win. However, it needs a definitive drubbing of the activists. It was 20 years ago today that then-CEO Michael Eisner saw a pair of board members step down and rally against Disney's helmsman. A whopping 45% at the 2004 shareholder meeting voiced their displeasure. That wasn't quite enough to unseat Eisner from the boardroom, but the writing was on the wall. He stepped down a few months later. Iger, similarly, can't just win this week. He needs to come out on top in resounding fashion.
Image source: Disney.
It's not just the boardroom that has a wish. Disney's Wish will make its streaming service debut on Disney+ on Wednesday. The film flopped at the multiplex last year, failing to top $64 million in domestic ticket sales. Disney's original animated features were once a slam dunk. Last year there were 40 other theatrical releases that fared better.
Wish was a bigger hit internationally, generating $254 million in global box office receipts, and streaming on Disney+ could help improve the film's visibility. Disney already saw Encanto blow up after an initially lackluster run on the big screen. But with just 2% of the country having seen Wish in theaters, it's time for a formal introduction of the movie to the rest of the Disney fan base.
April 4
Disney largely struggled at the box office last year, and 2024 is off to an even worse start. It has limited its movie theater releases to three animated films -- Luca, Soul, and Turning Red -- that sidestepped the multiplex to reach consumers directly early in the pandemic through Disney+.
It's not a surprise that they have fared poorly in the past three months. Fans have been streaming the films for a couple of years now. The best performer of the three sold just $1.4 million in admissions. Now is when Disney starts turning up the heat.
Disney's 20th Century Studios will release The First Omen on Thursday. It's a prequel to the 1976 classic The Omen. But if the film doesn't fare well, it won't be a reason for Disney investors to worry. It has at least one potential box office blockbuster in its arsenal every month now through the end of the calendar year.
April 5
Long before Disney acquired Lucasfilm, it struck a deal to open a Star Wars-themed attraction at some of its theme parks. Star Tours has entertained fans of the iconic sci-fi series since 1987. A neat feature of the galactic flight simulator is that it can refresh the attraction simply by changing the film and programming of the vehicle movements.
Disney is updating the ride starting this weekend by adding characters and storylines from some of the Star Wars Disney+ shows. New adventures on Star Tours will feature Ahsoka, Andor, and The Mandalorian. The update will take place at Disney parks in Florida, California, and France. As a leading entertainment stock, Disney knows how to milk the most of its properties through its rich ecosystem.
April is going to be an important month for Disney. This week alone is going to be pretty intense.
