Disney chief executive Bob Iger has acknowledged that The Mandalorian and Grogu failed to meet the studio's box office expectations, grouping it with the recent live-action Moana as another franchise release that underperformed in cinemas. The admission came during Disney's latest earnings call, where Iger argued that even when films fall short theatrically, the investment still benefits the wider business through streaming, merchandising and theme park tie-ins. The comments matter because they reflect a broader shift in how Disney assesses the success of its Star Wars and other franchise output, weighing box office receipts against long-term value across its entire ecosystem.

The Mandalorian and Grogu opened to around $80 million domestically before suffering a steep 70.1% drop in its second weekend, reportedly a record decline for a Star Wars release. Despite the weak domestic trajectory, the film has passed $250 million at the global box office, though this is thought to be insufficient for it to break even from theatrical revenue alone. Iger framed the underperformance as one data point among many, stressing that such films continue to "fuel other parts" of Disney's operations even when cinema results disappoint.