Six Flags' Regional Pass Moat & D'Amaro's Disney+ Pivot

Six Flags posted a strong Q1: 2.9 million guests (+4%), net revenues up 12% to $225.6 million, and per-cap spending up 6% to $69.26. More interesting, though, is that the new regional pass is driving cross-park visitation, and CEO John Reilly named SoCal and Texas as the markets where the pass is already working. Six Flags is leaning into this by announcing expanded summer programming and teasing new holiday programming at select parks. As some budget-conscious guests look to trim spending, Six Flags is positioned well geographically to capture that ‘trade-down’ demand.Disney beat on the top and bottom: $25.17 billion in revenue (+7%) and adjusted EPS of $1.57. The stock popped about 7% on the day. Experiences revenue hit a Q2 record at $9.49 billion, with operating income of $2.6 billion, even as domestic parks attendance fell 1% on softer international visitation. Per-capita spending at domestic parks was up 5%. Hugh Johnston said the company has not seen any change in consumer behavior due to elevated gas prices, and Disney World forward bookings are pacing strongly, even with a 40% increase in cruise capacity. The most striking move on the call was Josh D'Amaro's reframing of Disney+ as the centerpiece of the company, calling it "the single most significant opportunity" the company has.Listen to weekly BONUS episodes on our Patreon.