Disney Acknowledges Box Office Disappointment of ‘The Mandalorian & Grogu’, Frames It as Franchise Engine

According to CinemaDrame News Agency, Disney has officially acknowledged that its new Star Wars feature film, The Mandalorian & Grogu, fell short of global box office expectations.

During the company’s quarterly earnings call with shareholders, Disney CEO Josh D’Amaro stated that while The Mandalorian & Grogu underperformed at the theatrical box office, bringing the popular Disney+ television series to the big screen energized other divisions of the company—including merchandise and toy sales, as well as boosted attendance at Disney theme parks.

“Even when our franchise films like The Mandalorian & Grogu or the live-action Moana don’t hit our expected box office numbers, investing in these key titles drives the engine for the rest of Disney,” D’Amaro said. “This film boosted sales for Star Wars merchandise and drew visitors to the Millennium Falcon attractions at Disneyland.”

Hugh Johnston, Disney’s Chief Financial Officer, also emphasized that the diversity of Disney’s business model helps buffer the commercial volatility of the theatrical film industry.

Produced on a reported $165 million budget (excluding marketing costs), The Mandalorian & Grogu grossed just $345 million worldwide—a noticeable drop for a Star Wars feature. Prior to this, the lowest-grossing live-action film in the franchise was 2018’s Solo: A Star Wars Story, which took in $392 million.

Despite the setback, Disney maintains high hopes for its next project, Star Wars: Starfighter, directed by Shawn Levy and starring Ryan Gosling, which is scheduled for release in May 2027.