Analysts Call 2021 A “Lost Year” for Disney Theme Parks, Predicts They Won’t Fully Recover Until Fiscal Year 2023

Despite the Walt Disney World Resort’s phased reopening being well underway now, and Disneyland Resort ready to reopen as soon as possible, the impacts of the theme park shutdown have already taken root within the company’s Disney Parks, Experiences, and Products division, with some analysts claiming that the theme parks may be facing another “lost year” in 2021.

Goofy Cavalcade with Cinderella Castle

According to a report by The Orange County Register‘s Brady MacDonald, Deutsche Bank analysts have upgraded Disney stock due to the success of Disney+ in the past few months, but warn that the theme parks may continue to struggle for a few more years.

In reference to the upcoming start of the new fiscal year, Deutsche Bank noted in their recent analysts’ report:

At this point, we are assuming that FY21 (beginning 10/1/20) will be another ‘lost year’.

The Disney Parks, Experiences and Products division revenue is expected to decline $9.8 billion in fiscal year 2020, with revenue not expected to fully bounce back until 2023. Deutsche Bank expects a significant rebound in 2025, with a $10 billion boost in revenue up from pre-pandemic levels.

With local visitors making up 50% of park capacity, analysts don’t expect attendance—or the parks’ full earning power—to normalize until a vaccine is widely available and domestic and international travel resumes.

Source: The Orange County Register