The Walt Disney Company warned that its theme parks are facing difficulties as record inflation puts a trip to the Magic Kingdom out of reach for millions of middle- and working-class Americans. The news sent Disney shares tumbling more than 3% through the day on Wednesday.
Disney said on its quarterly earnings conference call that it expects revenue from its “Experiences” division, which includes its theme parks, cruise ships and other live entertainment offerings, to decline in the coming quarters, specifically pointing to inflation.
Disney Chief Financial Officer Hugh Johnston said lower-income consumers have been hit hard by the current economic situation and, as a result, aren’t visiting Disney parks as often as they used to. In the most recent quarter, Disney reported a 6% drop in operating profit for its Experiences business.
Disney parks have long been a reliable cash cow for middle- and working-class American families, many of whom have saved for years to pay for their pricey trips. But under the Biden-Harris administration, consumer prices have risen to record levels, forcing families to cut back on non-essential spending to pay for groceries, rent and health insurance.
Kamala Harris has publicly supported Bidenomics, which includes trillions of dollars in new government spending that has been a major catalyst for record inflation.
“Bidenomics is working.” Kamala Harris.
pic.twitter.com/lQBFajMMmn https://t.co/jnMAlyLedB— House Republicans (@HouseGOP) August 2, 2024
Breitbart News reports that Disney is once again raising prices for its streaming entertainment by up to 25 percent.
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