More stories

  • in

    Why is Universal making a live-action ‘How to Train Your Dragon’? These charts may explain

    Universal Pictures and DreamWorks Animation are making a live-action “How to Train Your Dragon” film, due in theaters in 2025.
    Rival studio Disney has proven that live-action remakes of classic animated features are profitable at the global box office.

    Still from Universal and Dreamworks’ “How to Train Your Dragon 2.”
    Universal | Dreamworks

    Universal Pictures and DreamWorks Animation are taking a page out of Disney’s playbook.
    For the last decade, the Walt Disney Company has been transforming its classic animated features into live-action theatrical and streaming features. Earlier this week, Universal said it would be doing the same for one of its own animated franchises: How to Train Your Dragon.

    The live-action adaptation based on the 2010 film about the friendship between a young man and his dragon is due in theaters March 14, 2025.
    Dean DeBlois, who wrote and directed all three films in the animated trilogy, is on tap to write and direct the live-action version. The films’ story was based on the best-selling book series by Cressida Cowell.
    Universal’s decision to translate the successful animated franchise to live action has precedent.

    Since 2010, Disney has released 11 theatrical live-action remakes — from “Alice in Wonderland” to “Cruella” — generating more than $8.6 billion at the global box office, according to data from Comscore. Three additional films — “Mulan,” “Lady and the Tramp” and “Pinocchio” — were sent straight to streaming service Disney+.
    Disney has had varied success with these theatrical releases.

    Seven of the remakes have generated more than $500 million globally, and four topped the $1 billion mark, including “The Lion King,” which tallied more than $1.65 billion in 2019.
    Others, such as “Dumbo” and “Alice Through the Looking Glass,” were less popular in theaters. Additionally, Disney released “Cruella” at a time when pandemic restrictions and public concern meant many people avoided going to the cinema.
    Disney continues to bet on these films. “The Little Mermaid” is due in theaters May 26, and “Peter Pan and Wendy,” “Snow White” and “Mufasa: The Lion King” are due out in the next 12 to 18 months.
    What is, perhaps, most notable about Disney’s live-action remakes is how much of the ticket sales were generated from international markets. This is something Universal is likely also keyed into when creating the live-action version of “How to Train Your Dragon.”

    The How to Train Your Dragon franchise has done well domestically but outperformed in foreign regions. While the first film had a fairly even split between domestic and international, the two sequels both saw around 70% of ticket sales from markets outside the U.S. and Canada, according to data from Comscore.
    So Universal not only has proof that live-action remakes can dazzle at the domestic box office, it also can see they will likely capture international audiences as well.
    Disclosure: NBCUniversal is the parent company of Universal Pictures and CNBC. NBCUniversal owns DreamWorks and distributes the “How to Train Your Dragon” films.

    WATCH LIVEWATCH IN THE APP More

  • in

    Solid fourth-quarter earnings push AutoNation stock to an all-time high

    Solid earnings from AutoNation propelled the car dealer’s stock to a new all-time high and its best day in nearly three years.
    The Florida-based dealership group reported an adjusted earnings per share of $6.37 and revenue of $6.7 billion for last quarter.
    AutoNation closed at $157.30 a share, marking a new high for the auto dealer’s stock following an 11.4 % increase to end the week.

    Vehicles are displayed for sale at an AutoNation car dealership on April 21, 2022 in Valencia, California.
    Mario Tama | Getty Images

    A solid fourth-quarter earnings report from AutoNation on Friday propelled the car dealer’s stock to a new all-time high and its best day in nearly three years.
    The Florida-based dealership group reported an adjusted earnings per share of $6.37 and revenue of $6.7 billion for the previous quarter. That compares to analyst expectations of $5.83 a share and $6.5 billion in revenue, according to Refinitiv.

    AutoNation closed Friday at $157.30 a share, marking a new high for the auto dealer’s stock following an 11.4 % increase to end the week. It was the stock’s best daily performance since April 2020 and a new record-high closing price.

    The increase follows AutoNation last year reducing shares outstanding by 25% as it repurchased 15.6 million shares, including 4.6 million during the fourth quarter.
    AutoNation CEO Mike Manley attributed the solid quarter and record year of earnings to operational execution as well as new all-time high earnings in after sales and customer financing.
    “During the year, we expanded our footprint, introduced additional transportation solutions, and leveraged our strong cash flow to fund investments and return capital to shareholders,” Manley said in a release.
    AutoNation’s 2022 cash flows from operations were a record $1.7 billion. Its net income last year was roughly flat from 2021, despite a 26% decline in the fourth quarter to $286.4 million.

    Stock chart icon

    AutoNation’s shares over the last five years.

    Large dealers such as AutoNation have been reporting record results during the coronavirus pandemic, as consumer demand remained resilient but new vehicle inventories were at record lows due to production interruptions due to the global health crisis as well as supply chain problems.
    The circumstances pushed AutoNation to pivot to sell more used cars than new during the pandemic, as those who couldn’t afford or find a new vehicle moved to the used car market. That propelled prices to new record highs and profits for used vehicle sales.
    Vehicle inventories have been slowly rising for many auto brands in recent months. However, there remain hurdles and Wall Street has been monitoring for a “demand destruction” scenario in which pent-up demand from the past three years is depleted.
    AutoNation did not release guidance for 2023. Manley told Automotive News he expects the seasonally adjusted annual rate of light-vehicle sales to be close to 15 million this year, up from 13.7 million in 2022.
    “I think for the foreseeable future, the retail industry will continue to evolve including how customers approach vehicle ownership and usage,” he said during an earnings call Friday. “And it’s an exciting time, frankly to be on the segment and we believe the evolving landscape offers many opportunities.”

    WATCH LIVEWATCH IN THE APP More

  • in

    Citi says buy 3 stocks tied to the consumer for the same reasons we own them

    Procter & Gamble (PG), Estee Lauder (EL) and Constellation Brands (STZ) can navigate any economic slowdown in the short term while offering long-term growth opportunities, according to Citi in a new research note. The bullish call on these consumer-tied companies aligns with our view and comes as defensive stocks have fallen out of favor in 2023, with many investors instead piling into beaten-down tech names. What Citi thinks Analysts at Citi chose our three Club holdings among their top-rated picks — initiating coverage in U.S. beverages, household and personal care products. While these high-quality names have seen temporary pain in a tougher economic climate with still-elevated inflation, analysts argued they offer “compelling long-term growth stories at reasonable valuations.” PG YTD mountain P & G (PG) YTD performance Like many multinationals, Procter & Gamble, has been weighed down by a strong U.S. dollar, making its products more expensive to international consumers. The company has also been pressured by higher commodity, material and freight costs. But those inflationary trends appear to be easing. Additionally, the company’s product price hikes don’t seem to be impacting sales. In its fiscal 2023 third-quarter guidance , P & G expects, in aggregate, a $3.7 billion, or $1.50 per share, after-tax drag — smaller than its prior outlook for a headwind of $3.9 billion, or $1.57 per share. At the same time, the consumer products powerhouse, whose high-quality brands include Tide, Pampers and Gillette, has been able to raise prices on its products with minimal pushback — contributing to 5% organic sales growth in fiscal Q2 and estimates for 4% to 5% organic sales growth in the current fiscal third quarter. With these factors in mind, Citi sees the company in a “better position to navigate through a challenging macro environment.” Moreover, analysts see an “attractive entry point” to scoop up P & G shares, which have dropped more than 7.5% year to date, following the company’s overall poor fiscal second-quarter earnings in late January. Citi has a $160-per-share price target on the stock, which rose 2% on Friday to about $140. STZ YTD mountain Constellation Brands (STZ) YTD performance Citi also said it’s time to buy Constellation Brands, the company behind Mexican beers Corona, Modelo and Pacifico. Shares have fallen about 2% so far in 2023 following a rough December after its beer brand experienced tempered demand due to poor weather in key markets like California. The firm said, at the time, that short-term headwinds will improve to help drive “medium-term beer top-line growth.” Analysts at Citi have a $265 price target on the stock, which fell slightly lower Friday to just under $227. EL YTD mountain Estee Lauder (EL) YTD performance Citi also estimates “strong topline/margin recovery” from Estee Lauder as China’s economy continues to reopen. China accounts for roughly a third of the company’s revenue. Estee Lauder, a leading manufacturer of luxury skincare, makeup and fragrance products, struggled during the Covid pandemic, as people around the world stayed home, and lockdowns persisted in China long after many major economies, such as the U.S., began reopening. However, that’s been recently changing since Beijing ditched its zero-Covid policy. So, as the Chinese economy continues to reopen, Estee Lauder’s business in the region is “poised to accelerate from here,” said Citi, which has a price target of $295 on the stock. Shares of the cosmetics giant rose more than 1% on Friday to nearly $253. EL has seen a roughly 2% year-to-date gain. What the Club thinks The bottom line: we’re pleased to see Citi’s bullish calls on Procter & Gamble, Constellation Brands and Estee Lauder, for similar reasons that we hold each stock. These names are more resilient to a discretionary spending slowdown since demand for their products persists, even in an economic slowdown. Procter & Gamble’s pricing power has allowed it to weather high input costs, and as those extra expenses comes down, that will take some pressure off margins. We weren’t disturbed by the temporary pullback in beer trends from Constellation Brands. The company has proved that it has long-standing beer growth and we expect that demand to persist, even in an economic slowdown. CEO Bill Newlands will speak at a consumer conference next week, when we’ll get an update on how its business is performing. We still own Estee lauder for the China reopening play and believe since Beijing has eased its zero-Covid policy the stock can work its way back to its pre-2022 lockdown levels. Jim Cramer has previously said “the opening of China is a really big deal for people going out. Don’t ignore it. Buy Estee Lauder.” (Jim Cramer’s Charitable Trust is long EL, PG & STZ. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

    Tide, a laundry detergent owned by the Procter & Gamble company, is seen on a store shelf on October 20, 2020 in Miami, Florida.
    Joe Raedle | Getty Images

    Procter & Gamble (PG), Estee Lauder (EL) and Constellation Brands (STZ) can navigate any economic slowdown in the short term while offering long-term growth opportunities, according to Citi in a new research note. The bullish call on these consumer-tied companies aligns with our view and comes as defensive stocks have fallen out of favor in 2023, with many investors instead piling into beaten-down tech names. More

  • in

    DraftKings stock surges after sports-betting company boosts outlook

    DraftKings reported stronger than expected revenue and raised its outlook for 2023.
    DraftKings was the number one most downloaded sportsbook app in the US on Super Bowl Sunday, said Jason Robins, DraftKings CEO and Co-Founder.
    DraftKings recently launched in Maryland, Kansas and Ohio.

    In this photo illustration, the American daily fantasy sports contest and sports betting company DraftKings logo is displayed on a smartphone screen.
    Budrul Chukrut | Lightrocket | Getty Images

    Shares DraftKings surged Friday morning after the sports-betting company reported stronger-than-expected revenue and raised its outlook for 2023.
    The stock closed 15% higher at $20.54, giving it a market value of $8.39 billion.

    The bump came on the heels of DraftKings being the most downloaded sportsbook app in the U.S. on Super Bowl Sunday, according to the company. States where sports betting is newly legal are boosting sales, too.
    For its fiscal fourth quarter, Draftkings said its revenue of $855 million is an increase of 81% compared to the $473 million it took in during the same period in 2021. It reported a loss of 53 cents per share on revenue of $855 million. Analysts polled by Refinitiv had anticipated a loss of 59 cents per share on revenue of $800 million.
    The company attributed the results to continued customer retention, acquisition and engagement in existing states, as well as successful launches of its Sportsbook and iGaming products in additional jurisdictions.
    “I am very pleased with how we concluded 2022, with continued top-line growth and a strong focus on expense management,” DraftKings CEO Jason Robins said in a release.
    DraftKings is raising its fiscal year 2023 revenue guidance to a range of $2.85 billion to $3.05 billion from the range it announced in November, $2.8 billion to $3 billion. The company said its updated guidance equates to year-over-year growth of 27% to 36%.

    DraftKings recently launched in Maryland, Kansas and Ohio.
    –CNBC’s Jessica Golden contributed to this report.

    WATCH LIVEWATCH IN THE APP More

  • in

    Ford warned some F-150 Lightning owners about separate EV battery issue before this month’s fire

    A defective battery causing a Ford F-150 Lightning to catch fire earlier this month isn’t the only problem the Detroit automaker has recently experienced with its all-electric pickup truck.
    A week before the fire, some F-150 Lightning owners were asked to have their vehicles serviced for a separate issue to replace parts to “prevent performance degradation” of the truck’s battery.
    The January problem is not believed to be connected to a battery fire that occurred Feb. 4, according to a Ford spokeswoman.

    Ford workers produce the electric F-150 Lightning pickup on Dec. 13, 2022 at the automaker’s Ford Rouge Electric Vehicle Center (REVC).
    Michael Wayland | CNBC

    DETROIT – A defective battery that caused a Ford F-150 Lightning in the company’s possession to catch fire earlier this month isn’t the only problem the Detroit automaker has recently experienced with its new all-electric pickup truck.
    On Jan. 27, a week before the fire, the company issued a “customer service action” for a small group of vehicles to have parts replaced to “prevent performance degradation” of the high-voltage battery. Ford Motor said the problem only affected about 100 vehicles so far and is not believed to be connected to the Feb. 4 fire. Ford said it is monitoring the vehicles remotely and proactively contacting customers when the company spots the problem.

    Despite the small number of vehicles impacted, it adds to a pattern of problems Ford and other automakers are having as they invest billions in rushing electric vehicles to market. Many of the industry’s issues have been minor. But when they involve the costly, and complex, batteries of the vehicles, financial problems and serious safety concerns – specifically fires – can arise.
    For Ford, the F-150 Lightning problems are part of ongoing quality and operational issues, as outlined by CEO Jim Farley to investors days before the fire occurred in a Ford holding yard.
    “We have deeply entrenched issues in our industrial system that have proven tough to root out,” he said Feb. 2 during a fourth-quarter earnings call. “Candidly, the strength of our products and revenue has masked this dysfunctionality for a long time. It’s not an excuse, but it’s our reality. And we’re dealing with it urgently.”
    Ford, which executives have said was the most recalled automaker for the past two years, is not alone in having problems with its newest EV launches.
    Toyota Motor last year had to recall its first mass-produced global EV because of a risk the wheels could come loose. General Motors two years ago recalled all of its Chevrolet Bolt EV models due to fire issues. Others such as Hyundai, BMW and Volvo also have recalled electric vehicles, including plug-in hybrids, due to fire risks in recent years.

    To be clear, fire concerns are not exclusive to EVs, they’ve historically been problems for the auto industry and continue to occur. Stellantis’ Ram Trucks this week announced a recall of 340,000 large diesel pickup trucks to replace an electrical connector after reports of six fires.
    Ford’s Jan. 27 notice was issued for a battery module problem, which can first show a “wrench” warning on the dash before slowing down into a restrained performance mode or, at worst, becoming immobile by not shifting into drive.
    “This not a safety recall. This is a proactive investigation to help prevent customers of the identified vehicles from experiencing a degradation in battery performance and to obtain field parts for evaluation,” Ford spokesman Marty Gunsberg said in an emailed statement.
    The amount of “customer service actions” Ford has issued for the F-150 Lightning since its launch in April 2022 was not immediately available.
    Ford, as communicated to customers, is replacing “certain high-voltage battery module(s)” from the vehicles with new parts free of charge to reconcile the issue. The time needed for the fix is one day, according to information provided by a “CXS, Ford Concern Team Battery Electric Specialist” to at least one customer.
    Regarding the issue that caused the fire and prompted Ford to halt production and shipments of the vehicle early last week, Ford said it is unaware of any incidents or issues associated with vehicles already delivered to dealers or customers.
    Ford said Wednesday it believes engineers have found the root cause of the fire. The investigation into the problem is expected to be completed by the end of next week, followed by adjustments to the truck’s battery production process that “could take a few weeks.”
    The F-150 Lightning is being closely watched by investors, as it’s the first mainstream electric pickup truck on the market and a major launch for Ford. The company is in the process of nearly doubling production capacity of the vehicle at a Michigan plant to 150,000 units by fall 2023.
    Ford does not release production data for the F-150 Lightning, however the company sold more than 2,200 of the vehicles last month. In 2022, Ford reported sales of more than 15,600 units of the vehicle.

    WATCH LIVEWATCH IN THE APP More

  • in

    ‘Ant-Man and the Wasp: Quantumania’ eyes $100 million open after $17.5 million Thursday

    Disney and Marvel Studio’s “Ant-Man and the Wasp: Quantumania” collected $17.7 million in Thursday preview ticket sales.
    The Marvel Cinematic Universe film is headed for a $100 million opening.
    It’s the MCU movie debut of Jonathan Majors’ Kang the Conqueror, the next overarching villain of the franchise.

    Marvel Studios’ “Ant-Man and the Wasp: Quantumania.”

    Disney’s “Ant-Man and the Wasp: Quantumania” collected $17.5 million in Thursday night previews on its way towards a $100 million opening weekend.
    The latest Marvel Cinematic Universe flick is the first entrant in the franchise’s phase five, the middle phase of the Multiverse Saga.

    “Quantumania’s” Thursday numbers are on pace with 2017’s “Guardians of the Galaxy Vol. 2,” which went on to collect $147 million during its opening. Previously, 2015’s “Ant-Man” snared $6 million on Thursday before tallying $57 million over the three-day spready. 2018’s “Ant-Man and the Wasp” secured $12 million on its Thursday debut and $76 million across Friday, Saturday and Sunday.
    Thursday previews are included in the total opening weekend haul.
    “‘Quantumania’ is tracking to become the best February box office opener in five years,” said Shawn Robbins, chief analyst at BoxOffice.com.
    Hype surrounding the big screen debut of Kang the Conqueror (Jonathan Majors) is likely to help drive foot traffic to theaters this weekend. Kang is the next big bad of the MCU, as teased during his debut in the Disney+ series “Loki” last year.
    Additionally, Robbins noted that moviegoers have been gravitating towards more expensive premium theater experiences for tentpole films like “Quantumania,” and that will likely lead to a boost in ticket sales.

    Lackluster critical reviews of the film likely won’t deter moviegoers. The film held a 47% rating on Rotten Tomatoes from verified critics, as of Friday afternoon, but an 84% score from audiences. “Quantumania” is one of only two MCU films to generate a “rotten” rating on the review aggregator.
    Disney also announced Friday that it is postponing the release of “The Marvels,” a film centered on Captain Marvel, Ms. Marvel and Monica Rambeau, to Nov. 10. The film had previous been set to debut on July 28.
    It is unclear why the studio is pushing the release, but it could be an effort to stagger content from the Marvel universe. “Guardians of the Galaxy Vol. 3” is slated for release on May 5. Additionally, the company has a handful of TV series set to air on Disney+ in the next 12 to 18 months.
    Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal owns Rotten Tomatoes.

    WATCH LIVEWATCH IN THE APP More

  • in

    FAA wants to fine SpaceX $175,000 for failing to submit data before a launch

    The Federal Aviation Administration seeks a $175,000 fine against Elon Musk’s SpaceX, saying the company failed to submit required data ahead of a Falcon 9 launch last year.
    The civil penalty comes from a mission carrying Starlink satellites that SpaceX launched on Aug. 19.
    The FAA says the company failed “to submit launch collision analysis trajectory data directly to the FAA prior” the mission, which is required at least seven days in advanced per federal regulations.

    A Falcon 9 rocket launches a batch of Starlink satellites to orbit on April 29, 2022.

    The Federal Aviation Administration seeks a $175,000 fine against Elon Musk’s SpaceX, alleging the company failed to submit required data ahead of a Falcon 9 launch last year.
    The proposed civil penalty comes from a mission carrying Starlink satellites that SpaceX launched on Aug. 19.

    The FAA says the company failed “to submit launch collision analysis trajectory data directly to the FAA prior” to the mission, which is required at least seven days in advance, per federal regulations.
    “Launch collision analysis trajectory data is used to assess the probability of the launch vehicle colliding with one of the thousands of tracked objects orbiting the Earth,” the FAA noted in a press release.
    In its enforcement letter, the FAA noted that the maximum civil penalty for such a violation of federal regulations is $262,666. The regulator is seeking a lower amount after reviewing its investigation into the incident.
    An FAA spokesperson told CNBC that the agency has not previously proposed civil penalties for a rocket operator failing to submit data before a launch, making Friday’s announcement a first in its regulations enforcement.
    The mission was one of 61 launches that SpaceX conducted in 2022, which set a new annual record for the company. It currently launches a mission to orbit on average every four days since the beginning of this year.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    The company has 30 days to respond to the FAA’s notice. SpaceX did not immediately respond to CNBC’s request for comment on the charge.

    WATCH LIVEWATCH IN THE APP More

  • in

    Look inside Super Nintendo World, which just opened at Universal Studios Hollywood

    Super Nintendo World is now open at Universal Studios Hollywood.
    The new land features a Mario Kart-inspired ride and a restaurant called Toadstool Cafe.
    Guests can also purchase power-up bands to play mini-games based on Nintendo’s Super Mario Bros. content.

    A general view of the “SUPER NINTENDO WORLD” entrance at Universal Studios Hollywood on February 16, 2023 in Universal City, California.
    Rodin Eckenroth | Getty Images Entertainment | Getty Images

    Enter the iconic green warp pipe and snake your way into Universal Studios Hollywood’s newest theme park land: Super Nintendo World.
    Nearly a decade in the making, this expansion to Universal’s California-based park is part of a broader partnership with video game company Nintendo that encompasses movies and merchandise. The area, a carved out section beyond Universal’s Jurassic World and Transformers areas, opened Friday to the general public.

    Super Nintendo World features an augmented reality Mario Kart ride, a Toad-inspired restaurant and a stocked-up merchandise hub filled with shirts, hats, plush and themed popcorn canisters. There are also meet-and-greets with Mario, Luigi and Princess Peach.
    The land, sequestered away from other parts of the park, is small, but packed with eye candy and the constant ding of parkgoers tapping question mark adorned bricks. Part of Universal’s lower studio lot was demolished to make room for the new world and new soundstages were erected or relocated to other areas on the expansive backlot.
    “What we were able to do was actually have the size work for us,” said Jon Corfino, vice president of Universal Creative. “If you take a look around, I think we are successful at creating this very immersive, enclosed and yet intimate environment where you really feel like you’ve stepped into the game. Because you don’t really see anything else around you and you’re totally contained.”

    Mario poses at the “SUPER NINTENDO WORLD” welcome celebration at Universal Studios Hollywood on February 16, 2023 in Universal City, California.
    Rodin Eckenroth | Getty Images Entertainment | Getty Images

    It’s unclear how much Universal invested in the project, which opens less than two months before the company’s movie studio releases its animated “The Super Mario Bros. Movie,” but it seems confident in its launch.
    “The parks business … it’s never been better for us,” NBCUniversal CEO Jeff Shell said in January. “We had a record year last year.”

    Shell noted that growth is slow domestically, but that the company has “found our footing” in Japan, where it opened a Super Nintendo World in March 2021. Last December, Shell told investors during a UBS conference that the Nintendo land in Japan was driving a lot of attendance to the international park and that those results are encouraging considering the big bets the company made for several Nintendo lands, including the one in Universal Studios Hollywood.
    The company has plans to bring similar lands to its much-anticipated Epic Universe in Florida and Universal Studios Singapore in 2025.
    Here’s a look at Universal Studios Hollywood’s new Super Nintendo Land:

    Princess Peach’s Castle

    As guests exit the warp pipe, they find themselves inside Princess Peach’s Castle. The area is mostly a photo opportunity, but also sets the backdrop of the encased and immersive land.
    Across the way, for about $40 parkgoers can purchase power-up bands that can be used to play mini-games within the land and unlock digital coins and badges on the Universal Studios Hollywood app.

    Princess Peach’s castle in Super Nintendo World at Universal Studios Hollywood.
    Sarah Whitten | CNBC

    The bands come in six styles based on major characters from Super Mario Bros. — Mario, Luigi, Princess Peach, Yoshi, Toad and Princess Daisy. The band character you choose coincides with with “team” you are on during your time in the land and all of your digital coin collection goes towards your own personal score and the team score.
    The bands are an extension to the land and not required for guests to enjoy the ride or dining options within the park.
    Essentially, the story line is that Bowser Jr. has stolen golden keys from the Mushroom Kingdom and guests need to collect three in order to gain access to a final boss battle with the little Koopa. Guests can participate in physical mini-games to get these keys including: Goomba Crazy Crank, Koopa Troopa POWer Punch, Piranha Plant Nap Mishap and Thwomp Panel Panic.
    Collecting three keys allows guests to enter into Bowser Jr.’s lair and compete in a special mini-game.

    Mario Kart: Bowser’s Challenge

    The main attraction in Super Nintendo World is Mario Kart: Bowser’s Challenge.
    To get to the ride, parkgoers must pass through Bowser’s Castle. The queue winds through different corridors and showcases a collection of trophies, memorabilia and Bowser’s plans to defeat Team Mario in the upcoming race.

    Universal Studios Hollywood employees await guests outside Mario Kart: Bowser’s Challenge in Super Nintendo World.
    Sarah Whitten | CNBC

    The ride itself is multifaceted. At its most basic, it is a race of Team Mario vs. Team Bowser. Layered over a traditional racing coaster is an augmented reality shooter game.
    Racers are prompted to turn the steering wheel to navigate the racing course and encouraged to shoot shells at rival racers and obstacles. Pay attention to the pre-show which indicates the racers you should target and the ones you should let breeze by on the raceway.

    Statue of Bowser in Super Nintendo World at Universal Studios Hollywood.
    Sarah Whitten | CNBC

    Corfino explained that the team decided to use AR technology because it was more of a social experience. Guests could wear clear plastic visors on the ride and see their friends and family as well as the immersive animation of the Nintendo racers.
    He called the AR “transparent technology,” something that would disappear and allow guests to be completely immersed in the experience.
    Pre-show animation guides guests on how to wear a specialized Mario visor that will be used during the ride. There is a toggle on the back to tighten or loosen the apparatus.

    Mario Kart visors from Mario Kart: Bowser’s Challenge at Super Nintendo World at Universal Studios Hollywood.
    Sarah Whitten | CNBC

    For the most part, the experience is seamless. Racers turn their head to see fellow racers, question-mark boxes filled with shells and upcoming obstacles.
    However, those with glasses may find it difficult to see throughout the ride. The visor fits snuggly to the forehead. There isn’t a lot of room for eyewear between the visor and the plastic shield that attaches in the ride vehicle.

    View of onboarding for Mario Kart: Bowser’s Challenge in Super Nintendo World at Universal Studios Hollywood.
    Sarah Whitten | CNBC

    Additionally, Universal has faced criticism for size restrictions on several of its theme park rides domestically. Mario Kart: Bowser’s Challenge, too, saw some blowback for guidelines that stated the right may be unsuitable for riders with waistlines over 40 inches.

    Merchandise available at 1-UP Factory inside Super Nintendo World at Universal Studios Hollywood.
    Sarah Whitten | CNBC

    Riders exit through the gift shop filled with Nintendo character merchandise.

    Toadstool Cafe

    Super Nintendo World’s signature restaurant is called the Toadstool Cafe and its entryway is shaped like a giant red-capped mushroom.
    Chef Toad oversees the kitchen which makes a collection of themed salads and burgers as well as spaghetti and meatballs and a short rib special.

    Toadstool Cafe located insider Super Nintendo World at Universal Studios Hollywood.
    Sarah Whitten | CNBC

    Guests order their food, receive their drinks and are whisked away by the dining team to their seats.
    There are video screens throughout the space that act as windows into the Mushroom Kingdom. Throughout your stay you may see multi-colored Mushroom People pass by the frames or battle it out in the skies against enemy invaders.

    Toadstool Cafe during a media preview of Super Nintendo World theme park at Universal Studios Hollywood in Universal City, California, US, on Thursday, Feb. 16, 2023.
    Bloomberg | Getty Images

    The restaurant’s signature drink is called the Super Star Lemon Squash. It contains honey lemon soda and tropical boba with mango stars on top.
    For dessert, guests can choose from a question block shaped tiramisu, a Mr. Beanpole cake, which is a twist on an Italian cake, or a Princess Peach cupcake.

    A Princess Peach cupcake inside Toadstool Cafe during a media preview of Super Nintendo World theme park at Universal Studios Hollywood in Universal City, California, US, on Thursday, Feb. 16, 2023.
    Bloomberg | Getty Images

    Super Nintendo World is open to the general public and will not require advanced virtual queuing in order to enter.
    Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

    WATCH LIVEWATCH IN THE APP More