Disney is standing by two of its biggest franchises, even after both fell well short of the box-office numbers the company had hoped for. While many studios might respond by reevaluating their strategy, Disney is making it clear that theatrical revenue isn't the only measure of success.
During its latest earnings presentation, the company openly discussed the performance of its newest Star Wars movie and the live-action Moana. At the same time, executives explained why they still believe those properties remain valuable across the broader Disney business.
Disney Acknowledges Both Films Missed Expectations
During its August 5 earnings call, Disney admitted that Star Wars: The Mandalorian and Grogu and the live-action Moana both “underperformed our box office expectations.”
The company made that acknowledgment after both movies delivered theatrical results that fell well short of expectations.
Star Wars: The Mandalorian and Grogu finished its theatrical run with approximately $345.2 million worldwide. Although that total would represent a solid performance for many films, it wasn't enough to recoup its reported $165 million production budget once marketing costs and theater revenue splits are factored in. Industry estimates put the movie's theatrical break-even point between $500 million and $600 million, making it the lowest-grossing live-action Star Wars film released in theaters.
The live-action Moana also struggled to reach Disney's usual blockbuster standards. Released in July 2026, the remake has earned about $263 million worldwide. With a reported production budget of roughly $250 million, the film opened below expectations and never developed into one of Disney's biggest theatrical successes.
Despite those disappointing numbers, Disney isn't treating either release as a long-term setback.
Disney Says Audience Response Tells a Different Story
While acknowledging that ticket sales fell short, Disney also pointed to how audiences reacted after seeing the films.
According to the company, Star Wars: The Mandalorian and Grogu currently hold an 86% audience score on Rotten Tomatoes alongside a 60% critics' score. The live-action Moana earned an 88% audience score despite receiving just a 31% critics' score.
Disney believes those audience scores show that fans continue embracing both franchises, even if theatrical attendance didn't meet expectations.
Executives also emphasized that the value of a major franchise extends well beyond movie ticket sales. Streaming, merchandise, licensing, consumer products, and theme park experiences all contribute to the overall success of Disney's largest intellectual properties.
That broader approach explains why Disney isn't viewing these theatrical disappointments as signs that audiences have moved on.
Success Extends Beyond the Movie Theater
Disney also used the earnings presentation to spotlight several positives from the quarter.
Executives described the period as creatively successful, led by Toy Story 5, which has already surpassed $1 billion at the worldwide box office.
The company also stressed that Star Wars and Moana continue performing well in other parts of the business.
Disney said Star Wars: The Mandalorian and Grogu helped drive healthy growth in franchise retail sales during the quarter. The parks remain another major strength, with Star Wars: Galaxy's Edge continuing to draw guests at Disneyland and Disney's Hollywood Studios. In contrast, Journey of Water, Inspired by Moana, continues giving the franchise a strong presence at EPCOT.
Disney also expressed confidence that the live-action Moana will become a strong title when it arrives on Disney+.
Taken together, the company believes these franchises continue creating meaningful value long after audiences leave the theater.
Disney Isn't Backing Away From Familiar IP
The earnings call also offered insight into Disney's long-term direction.
Rather than pulling back after two disappointing theatrical performances, Disney continues to view its biggest franchises as investments that span every part of the company.
A movie may miss financial expectations at the box office while still helping generate merchandise sales, attract visitors to Disney Parks, strengthen streaming, and support future storytelling.
Based on Disney's latest comments, those broader benefits appear to outweigh the disappointment of one film's theatrical performance.
More Franchise Projects Remain on the Schedule
Disney's upcoming lineup reflects that continued strategy.
The company is still developing a live-action Tangled along with Lilo & Stitch 2. Meanwhile, the Star Wars franchise will continue to expand with Star Wars: Starfighter and Season 2 of Ahsoka.
Those projects reinforce Disney's commitment to building around recognizable franchises that continue generating interest across multiple platforms.
Disney's Message Is Clear
Disney openly admitted that Star Wars: The Mandalorian and Grogu and the live-action Moana failed to meet the company's own box-office expectations. Even so, executives made it clear they aren't measuring those releases solely by ticket sales.
Strong audience reactions, merchandise growth, successful theme park experiences, streaming potential, and billion-dollar hits like Toy Story 5 all support Disney's belief that its biggest franchises remain valuable. Based on the company's latest comments, familiar intellectual property will continue shaping Disney's movie and entertainment strategy for years to come.
