disney: This is another reason why the U.S economy is staring at a recession

Disney announced on Wednesday that the operating profit for its domestic parks and experiences division came down by 3% from the previous year to $2.2 billion, though its revenues grew by 2% to $8.4 billion, reports ‘Business Insider’. Explaining the weaker-than-expected results, the company said that the operating income at its domestic theme parks on high costs plummeted due to a higher rate of inflation and a larger drop in consumer demand. It has been interpreted as yet another proof of the economy going sluggish. It can be explained in the way that the high inflation has hit the wallets of the average American, who has reduced his spending on trips and theme parks.

Sales of McDonald’s, Burger King come down

There are other similar examples of the economy going slow. The fast-food chains of McDonald’s, Burger King, and Taco Bell have introduced discounts, value meals and consumer-friendly schemes to attract cost-conscious consumers when their sales come down. Starbucks reported a decline in visits due to a “challenging consumer environment.”

Disney witnesses less consumer demand

Elaborating on the impact of the economic crisis on the sales of Disney theme parks, ‘The Street’ has reported that besides the higher cost due to inflation, it also witnessed a “moderation of consumer demand” at its theme parks that “exceeded” its previous expectations. The company has expressed apprehension that the slowed demand could continue to impact its operating income for the…