Disney (DIS) plans to add rides to its California parks as it upgrades and renovates the 490-acre Anaheim resort with new shops and restaurants as well. Disney stock gave up gains.
No new theme park is in the works. Instead the plan, dubbed Disneyland Forward, envisions new attractions, shops and eateries in undeveloped areas of the existing resort.
Disney officials said it is too early in the process to share construction costs. It expects to submit development plans for approval to the Anaheim City Council by 2023.
The last major completed overhaul to the resort was when it spent $1 billion to build Star Wars: Galaxy’s Edge, which opened in May 2019. Avenger’s Campus, which features Marvel superhero characters, is set to open soon at Disney California Adventure.
The announcement comes as Disneyland is set to reopen to limited capacity on April 30. The California parks have been closed for more than a year due to the pandemic and have been the biggest drag on Disney stock.
Parks revenue sank 53% to $3.59 billion in the first quarter. The parks segment’s operating income was impacted by $2.6 billion. Disney sees costs related to regulations and safety measures totaling $1 billion in fiscal 2021.
Shares closed down 0.5% at 185.92 on the stock market today. DIS stock hit an all-time high of 203.02 on March 8, when news of the parks’ reopening first emerged. Disney stock is extended from a buy point of 183.50 from a flat base, according to MarketSmith chart analysis.
Meanwhile, the company also said earlier its much-anticipated Marvel Studios movie “Black Widow” will be in theaters and on Disney+ Premier Access on July 9.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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