Walt Disney Co. executive chairman Bob Iger says talks are underway about best practices for when the North American theme parks reopen.
For the moment, the Disneyland Resort and the Walt Disney World Resort are closed indefinitely amid the coronavirus pandemic.
In an interview with Barron’s published today, Iger said one option is to take guests’ temperatures before they can enter a park.
“One of the things that we’re discussing already is that in order to return to some semblance of normal, people will have to feel comfortable that they’re safe,” Iger said. “Some of that could come in the form, ultimately, of a vaccine, but in the absence of that it could come from basically, more scrutiny, more restrictions. Just as we now do bag checks for everybody that goes into our parks, it could be that at some point we add a component of that that takes people’s temperatures, as a for-instance.”
Continued Iger, “So we’ve asked ourselves the question, let’s prepare for a world where our customers demand that we scrutinize everybody. Even if it creates a little bit of hardship, like it takes a little bit longer for people to get in.”
The company announced in late March that Iger and recently named CEO Bob Chapek would both be taking salary cuts (a 100 percent cut for Iger and 50 percent for Chapek) while the business was in flux due to the coronavirus.
Last week, the company stated it would furlough employees “whose jobs are not necessary at this time” beginning April 19.
With all the parks and shopping districts closed, along with the hotels and stores, that number is expected to be large.
Wells Fargo analyst Steven Cahall has downgraded Disney’s stock in a report today that forecasts the studio’s theme park division will take two years to return to normal attendance in the coronavirus pandemic era.
“We don’t think Parks can get back to anything close to full capacity until testing and/or vaccines are far more ubiquitous,” Cahall told investors.
He downgraded the Disney stock to equal weight from overweight, with a price target of $107.00.
Shares in the studio closed Tuesday at $101.24, up $1.88 or nearly 2 percent on the day.
Added Cahall: “We’ve thought the value creation from Disney+ (and later on Hulu) would be enough to more than offset a declining environment for media networks. We still believe in that, but we didn’t foresee this unique and severe downturn for Parks.”
Saying this was his biggest challenge to date, Iger discussed the overall mood of Disney right now.
“We’re optimists, although we’re also obviously realists, too,” he told Barron’s. “Optimists, because we have faith in the long-term prospects of our businesses, and our brands, which I think are important here. We know they have always been a place for people to go, whether it’s a movie or a park or ESPN, to enjoy their lives and to distance themselves from whatever daily issues they may be facing.”
The parks closed the weekend of March 14.