NEW YORK (TheStreet) -- Disney (DIS) - Get Report stock is up by 0.19% to $95.49 in mid-morning trading on Monday after the company announced that it will begin using a seasonal pricing system for one-day tickets at Disney Parks.
People who visit the company's park during popular periods, such as the winter holiday, will pay more, the Burbank, CA-based entertainment company said. The new pricing system went into effect on Sunday.
"The demand for Disney Parks continues to grow, particularly during peak periods," the company said in a blog post on Saturday. "We are shifting to seasonal pricing for 1-Day tickets. It's an approach that you are probably familiar with from many other areas, including sports, entertainment and travel."
Disney is no stranger to ticket price increases at its parks, Trifecta Stocks' Chris Versace and Bob Lang wrote in an article today.
"While there is a modest risk the price hike will result in some balking, we see the net effect boosting margins in the company's Parks & Resorts business (28% of park revenues and 23% of operating profits in the recently completed December quarter)," Versace and Lang wrote.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: DIS