Part 6/10:
Most capital investments—such as adding new rides or expanding park areas—are classified as capital expenditures, which impact depreciation and long-term balance sheets, not immediate expenses. These are contrasted with operational costs like wages and maintenance, which have reportedly been reduced.
This strategy might be boosting profit margins temporarily but could jeopardize long-term customer satisfaction. As service quality declines and prices rise, Disney risks alienating its core audience—especially families—who are increasingly priced out and are expressing dissatisfaction publicly.