2 Reasons Why Disney Stock Will Stay Red Hot: Frozen and Shanghai

Tickers in this article: DIS TGT WMT

NEW YORK (TheStreet) -- Walt Disney shares were Wednesday after the world's largest entertainment company reported that profit in its recently completed quarter climbed to $1.9 billion from $1.5 billion a year ago. 

The biggest driver to expanding margins was the blockbuster hit, Frozen. Disney made it clear that it plans to continue to build on that franchise.  In fact, Frozen, which wasn't expected to do as well as it did at the box-office, has been elevated by Chief Executive, Bob Iger to one of the company's Top 5 franchises. 

If the economic recovery gains further strength, Disney's amusement parks the world over are expected to welcome more visitors. 


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Demand for Frozen merchandise is hot, so much so that mommy bloggers have even noticed eBay sellers listing limited edition Frozen character dolls for as much as $4,500. Global success of Frozen has also boosted the film to become the best-selling title ever released on Blu-ray and digital. That's quite an accomplished considering all the movies that have come before it but Frozen's success says as much about Disney's presence in international markets.

During the company's investor conference call earlier today, Iger said that demand for Frozen merchandise helped boost foot-traffic at The Disney Stores, where 9 out of the 10 highest selling items in the quarter was merchandise related to the film. Meanwhile, discount retailers, Walmart  and Target have also been light on inventory.