Walt Disney Co. (DIS) plans to double its fleet of cruise ships by 2031.
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This December, the new Disney Treasure cruise ship will make its maiden voyage from Florida to the Caribbean, becoming the sixth ship in the Mouse House’s fleet. As with all Disney cruise ships, the Treasure features themed dining, activities for kids, and live entertainment.
Executives at Disney say the new Treasure vessel is the start of an aggressive expansion of its profitable cruise line business, with plans to double its fleet to 12 ships by 2031. Disney cruises are part of the company’s experiences division, along with its theme parks and resorts.
Record Sales and Profits
Disney’s experiences division posted record revenue and profit for Fiscal 2024, with revenue up 5% to $34.15 billion and operating income up 4% to $9.27 billion. Revenue growth in the experiences unit was the strongest of any Disney divisions, and the company expects 6% to 8% profit growth in Fiscal 2025.
Disney has become a leader in the family cruise segment, attracting families with young children. Disney is able to charge premium prices for its cruises as it sells the brand and experience to families. A seven-night cruise aboard the new Treasure ship starts at $6,994 for a family of four.
Disney stock has gained 24% so far this year.
Is DIS Stock a Buy?
Disney stock has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 15 Buy and five Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average DIS price target of $124.29 implies 11.27% upside from current levels.
