In this week’s Q3 earnings report, Disney revealed that they anticipate increasing capital expenditures to $6 billion in the coming years. The ambitious number would likely be shared among Disney Parks, Experiences, and Products.
The $6 billion in capital expenditures would likely include construction, equipment, and possibly land acquisition. This is expected to represent a significant investment in Disney Parks as these fixed location assets require consistent investment.
Historically whenever Disney announces spending increases, most of it has gone to parks. For example, in 2019 Disney spent around $4.9 in capital expenditures, of which $4.1 billion went to parks. And in 2021 they spent around $3.6 billion with $2.3 billion going to the parks.
Disney has a few significant projects on the horizon. They include:
- Two more Disney Cruise Line ships.
- The EPCOT overhaul.
- The second phase of Walt Disney Studios Park’s expansion in Paris.
- Shanghai Disneyland and Hong Kong Disneyland are smaller designated projects.
It is anticipated that announcements will be made at the D23 Expo next month regarding the proposed spending increase.
Are you happy that Disney continues to make significant capital investments?