The Walt Disney Company Warns Investors About Coronavirus Changing Consumer Behavior
As important as they are, SEC filings rarely make headlines.
Sure, all of us following The Walt Disney Company (and those of us who own shares – full disclosure, I own two) do pay attention when The Mouse makes some noise.
However, a whole lot of other folks took notice today when The Orange County Register reported:
Disney warns coronavirus outbreak could change consumer behavior at theme parks and other businesses
Disney expects the impact of the COVID-19 disruptions will have an ‘adverse impact on our financial and operational results.’
What, exactly, does that mean?
Thankfully, the ocregister.com’s amazing Brady MacDonald explained:
Disney expects the impact of the COVID-19 disruptions will have an “adverse impact on our financial and operational results.”
According to the SEC filing, the impact to Disney’s bottom line depends on a series of “unknowable” factors that include:
- Changes in consumer behavior as a result of disruptions from COVID-19
- The fixed costs of the company’s theme parks
- The cost of borrowing as a result of the COVID-19 impact on capital markets
- The duration of the coronavirus pandemic
- The impact of governmental regulations imposed in response to the pandemic
I tracked down the page on TheWaltDisneyCompany.com and the actual filing looked like this:
And Walt Disney World looks like this: