On a vacant property in the suburbs of Kansas City, Kansas, Mattel Inc. is planning its second theme park – before its first park even debuts.
The El Segundo-based toymaker has been expanding its offerings in recent years with the release of the successful “Barbie” film and plans to make more movies based on its IP and create additional theme parks.
The Mattel Adventure Park in Bonner Springs, Kansas, is scheduled to open in 2026 and will offer the same rides as at Mattel Adventure Park in Glendale, Arizona, including Hot Wheels roller coasters. The Glendale park will open later this year. The Kansas park is expected to cost roughly $487 million to build while the Arizona park will cost around $260 million.
Josh Silverman, chief franchise officer at Mattel, said the toymaker will bring its brands to life with roller coasters, family-friendly attractions, a theatre, themed dining and more.
“We are thrilled to expand these themed entertainment destinations and invite new fans to experience the world of Mattel in all-new ways as they create lasting memories with loved ones,” Silverman said in a statement.
Mattel is building the theme park in a licensing partnership with Epic Resort Destinations in Glendale, Arizona.
Epic Resort President Mark Cornell said the company was thrilled to partner with Mattel to bring its brands to life for visitors to the park through state-of-the-art technology and engaging experiences.
Cornell also serves as president of Mattel Adventure Park.
In addition to two Hot Wheels coasters – Hot Wheels Bone Shaker: The Ultimate Ride and the Hot Wheels Twin Mill Racer – the park will also feature the interactive Barbie Beach House, where visitors can design their own Barbie dolls using holograms that bring the doll to life. The attraction also includes a Barbie-themed flying theater and The Barbie Rooftop restaurant and bar.
And younger children can enjoy Thomas & Friends at five family-friendly experiential attractions and rides including a dedicated indoor play space.
At He-Man vs. Skeletor Laser Tag, Masters of the Universe fans can fight for Eternia in a massive laser tag arena in the likeness of the iconic Castle Grayskull fortress.
Mattel Adventure Park will also offer a mini golf experience featuring 18 holes inspired by Magic 8 Ball, Pictionary and other Mattel games, plus a larger-than-life custom climb UNO structure.
Future for the parks
In a call with analysts last week to discuss Mattel’s first quarter earnings, Jamie Katz, an analyst with Morningstar Inc. in Chicago asked about the economics of the new park and any future ones.
“I don’t know how many locations that could ultimately be or what that total addressable market is, so any insight on that would be helpful,” Katz said.
Ynon Kreiz, chief executive of Mattel, said the company hadn’t broken down the economics on the parks yet.
“But we did say this is a capital-light approach where we license our brands and participate in different forms in the economics of the park and, of course, can sell product there,” Kreiz said. “This is a highly accretive business line, especially given the strength of our brands.”
The theme parks are seen as an important growth avenue and Mattel expects to build more of them in addition to the Arizona and Kansas City locations, Kreiz added.
“But this is the strategy: to take strong brands that drive engagement and have a large fan base and capture value outside of the toy aisle in highly accretive business opportunities,” he said.
The Arizona park is expected to open in the fourth quarter of this year. The more than 160,000 square feet of air-conditioned amusement space will be located on nine acres of the VAI Resorts grounds at the corner of Cardinals Way and 95th Avenue in the Phoenix suburb. It is located across the street from State Farm Stadium, the home of the Arizona Cardinals of the NFL.
Earnings show a loss
For the quarter ending March 31, Mattel reported a net loss of $28.3 million (-8 cents a share), a narrower amount compared to the net loss of $107 million (-30 cents) in the same period of the previous year. Revenue decreased by 1% from the first quarter of the prior year to $810 million.
Anthony DiSilvestro, chief financial officer of Mattel, said the company achieved strong bottom-line results in the first quarter, driven by margin expansion and the repurchasing of $100 million in shares, and that it is on track to meet its full-year guidance.
“We expect to continue to benefit from the optimizing for profitable growth program, which is targeting $60 million in cost savings (this year) and a total of $200 million in cost savings by (the end of) 2026,” DiSilvestro said in a statement.
In February, Mattel announced its optimizing for profitable growth program, a multi-year cost savings program designed to achieve further efficiency and cost savings opportunities, primarily within the company’s global supply chain, including its manufacturing footprint. The program integrates and expands upon the other cost savings actions, which includes discontinuing production at a plant in China as previously announced in the third quarter of 2023.
Kylie Cohu, an analyst with Jefferies LLC, asked during the conference call how Mattel would use AI (artificial intelligence) in the cost-savings program.
DiSilvestro said Mattel has taken an extensive look at AI.
“And that is certainly within the scope of our (cost savings) program as we look to further efficiencies that would leverage our global scale,” he added. “AI is certainly one of them and other cost-saving opportunities, particularly within our supply chain as well.”
Kreiz interjected that the company is looking at AI broadly in terms of integrating more of its capabilities into product development and product integration.
“We have a team that is dedicated to that, and we are looking to leverage the technology in the broad sense of the word, not just in terms of achieving or driving this cost saving initiative,” he said.
