Disney Announces Massive Theme Parks, Cruise Expansion at D23

The Walt Disney Co. (DIS), which recently warned of slowing demand at its Experiences segment, is spending billions of dollars to expand its theme park attractions and its cruise ship fleet.

The announcements by the entertainment giant over the weekend flesh out details of the $60 billion, 10-year expansion of its theme parks and cruise operations it announced last year.

Among the announcements the entertainment giant reported at its three-day “D23: The Ultimate Disney Fan Event” in Anaheim, Calif.: the largest expansion in the 53-year history of Orlando’s Magic Kingdom, with a new Villains Land and another inspired by the “Cars” franchise; new “Avengers” attractions in its California, Hong Kong, and Shanghai parks; and increasing its cruise ship fleet to 13 from nine by 2031.

Experiences Segment Struggles With Consumer Pullback in Spending

Consumers’ pullback on discretionary spending has affected Disney shares despite the company’s better-than-expected third-quarter results last Wednesday, which saw its combined ESPN+, Disney+, and Hulu streaming unit turn a profit for the first time.

Chief Financial Officer (CFO) Hugh Johnson said during the entertainment giant’s earnings call that Disney expects “a flattish revenue number” for the Experiences segment for “a few quarters.”

Disney’s shares are little changed an hour before the opening bell Monday but are down more than 4% year-to-date.