Disney Is Hiking Its Spending on Park Projects by Nearly $1 Billion
Photo Credit: The Walt Disney Co. will increase its capital spending by $1 billion next year, due in large part to new Star Wars lands that are under construction. The company revealed a model and renderings of the lands this summer at D23 Expo, a fan event. Disney Parks / Joshua Sudock
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Disney's $4 billion purchase of Lucasfilm and the Star Wars franchise five years ago is the deal that keeps on giving — and costing, given all the additional investment in store. The entertainment giant clearly sees a future full of big returns on that investment.
The Walt Disney Co. has galactic plans for its Star Wars franchise, and those are coming with a big bill.
During an earnings call this week, executives said the company would increase capital spending for the current fiscal year by $1 billion.
"A lot of that spend is going into the completion of the two Star Wars lands, and we're also completing Toy Story land in Orlando and there's other initiatives that are in process around the globe," Chief Financial Officer Christine McCarthy told analysts.
Total capital spending in fiscal 2017, which ended Sept. 30, was a little more than $3.6 billion — $3.2 billion of which went to parks and resorts. That consolidated amount was down from $4.8 billion in f
