Free Cash Flow VolatilitySignificant FCF swings tied to large, lumpy capital spending reduce predictability of discretionary cash. That volatility can constrain shareholder returns, complicate multi-year planning for attraction rollouts, and force timing-sensitive financing choices during weaker visitation periods.
Rising Absolute DebtWhile leverage ratios are reasonable, growing absolute debt raises medium-term interest and refinancing exposure. Continued debt growth or adverse rate moves would increase servicing costs, potentially crowding out reinvestment in parks or hotels and reducing fiscal flexibility for strategic projects.
Dependency On Disney LicensingCore reliance on a third-party license concentrates strategic risk: changes to licensing terms, creative control, or Disney's IP strategy could materially affect attendance, pricing power and the ability to refresh IP-driven attractions. This dependency limits unilateral control over a key growth driver.