Hurricane Irma could shut down Disney World and cost the company millions
Hurricane Irma is barreling toward Florida and is expected to cause major damage, including to Disney World.
Disney World generates about $30 million in profits a day for its parent company, so shutting down for even a half day means millions of lost dollars, according to John Janedis, an analyst at Jefferies.
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Last year, Hurricane Matthew closed the park for 1 1/2 days, costing the company about $40 million, according to Janedis. It was only the second time the company had closed its doors in the last decade, according to reporting from Chelsea Brasted at the Times-Picayune.
As of now, the park has no plans to close for the Hurricane Irma, but has canceled several special events in the park.
"Walt Disney World Resort continues to monitor the path of the Hurricane Irma as we take the necessary steps to maintain the safety of Guests and Cast Members," a warning on the company's website states.
The company is not offering refunds or cancellations for visitors unless there is an official hurricane warning for the Orlando area, or a warning in the place of the visitor's residence within seven days of their scheduled arrival time according to the company's site.
Hurricane Irma is expected to be in the Orlando area sometime Sunday evening, according to the National Weather Service. The agency warns residents of east-central Florida to "prepare for life-threatening wind having possible devastating impacts" from Hurricane Irma.
Omar Sheikh, an analyst at Credit Suisse, said the impact of Irma will be less than a 1% drop in Fiscal Year 2017's earnings. The park segment of the company may be hit for about 10% of its operating income, but the company as a whole would probably see minimal impact.
Several Disney Cruises have been canceled due to Irma. Sheikh says just five cancellations would have a similar impact to a park closure at Disney World, and three cruises have so far been canceled according to the company's website. Disney is offering all impacted customers full.
Shares of Disney are down about 8.37% this year.
SEE: Disney World after Hurricane Irma
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