Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

SeaWorld Entertainment Inc (SEAS), The Walt Disney Company (DIS): Theme Parks Are Good for Investments and Memories

School is out and summer is finally upon us. Let the fun in the sun begin!

A TripAdvisor survey reveals that this year will see the return of the summer vacation. Over 86% of respondents indicated that they intend to go on a leisure trip this summer.

As theme parks drain the savings accounts of willful and happy travelers, is there a theme park stock that might return a few of those dollars to your investment accounts?

The baby killer whale

SeaWorld Entertainment Inc (NYSE:SEAS)

Still just a baby killer whale on the New York Stock Exchange, SeaWorld Entertainment Inc (NYSE:SEAS) only went public in April 2013, and shortly thereafter reported its first quarter earnings.

The company reported a loss of $40.4 million during the first quarter, or $0.49 per share. This may not sound favorable at first, but it is actually an improvement over the $45.1 million loss during the same quarter in 2012. The company saw also revenue increase 12% to $238.6 million during the quarter.

Admission per capita (defined as admission revenue divided by total attendance) increased by 12% from $38.99 to $43.56 primarily as a result of pricing and yield management strategies. In-park per capita spending (defined as food, merchandise, and other revenue divided by total attendance) increased by 6% from $23.17 to $24.63 due to improved economic conditions, targeted price increases, and increased offerings. Attendance in the first quarter of 2013 was up 2% to 3.5 million, a benefit of the timing of Easter and New Year’s Eve both falling in the same fiscal quarter. SeaWorld Entertainment Inc (NYSE:SEAS) is also the parent company of Busch Gardens Tampa.

Two adults and two children under the age of nine can visit SeaWorld Entertainment Inc (NYSE:SEAS) for a single day for a total of $332.28 (with tickets purchased online in advance).*

The magic of the Magic Kingdom

The Walt Disney Company (NYSE:DIS) overall reported a 32% increase in net income from the previous year for the most recent fiscal quarter. The theme parks and resorts segment enjoyed the largest growth, with profits rising 73% to $383 million. The company attributed the increase to longer guest stays at resorts, and the new Disney Fantasy cruise ship. A hike in food and beverage prices, as well as theme park entrance tickets, added a 14% increase to the unit’s revenue of $3.3 billion.

The New Year’s Eve and Easter holiday anomaly helped the company as well–an anomaly that should not be overlooked, given how beneficial it was.

The Walt Disney Company (NYSE:DIS) tripled its investment in its resorts business over the past few years, spending $9.2 billion to update and refresh some of its parks in both Florida and California.  Attendance at the U.S. parks increased 8% in the second quarter.

The cost for two adults and two children (under the age of nine) to attend just the Magic Kingdom for one day? $391.94.*

Universal appeal

Comcast Corporation (NASDAQ:CMCSA) is the parent company of NBC Universal, which operates the Universal Studios theme parks.

The Universal theme parks also saw a nice bump up from the New Year’s and Easter calendar anomaly. For the first quarter of 2013, revenue from the Comcast/NBC Universal Theme Parks segment increased 12.2% to $462 million compared to $412 million in the first quarter of 2012. It’s a nice improvement, but barely a drop in the bucket compared to the 73% increase at The Walt Disney Company (NYSE:DIS) .

Attendance at Universal’s Islands of Adventure in Orlando increased 66% between 2009 and 2011, thanks to the opening of the new Wizarding World of Harry Potter.

$323.96 will get two adults and two individuals under 48 inches tall into Universal Studios for one day.* So far that’s the cheapest admission among the theme parks.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.