The Mandalorian and Grogu Blasts Past $163 Million at Memorial Day Box Office — But Hollywood Is Still Nervous

Star Wars Returns to Theaters — And Delivers

After nearly seven years without a Star Wars film on the big screen, Disney and Lucasfilm finally gave us something to cheer about at the box office. The Mandalorian and Grogu, directed by Jon Favreau, opened to a solid $100 million domestically and $163 million worldwide over the Memorial Day holiday weekend — the best four-day Memorial Day debut since 2019.

Starring Pedro Pascal as the titular bounty hunter and featuring a full supporting cast including Tommy Lee Jones, Bernard Bullen, and the ever-adorable Grogu (aka Baby Yoda), the film brought fans back to theaters in meaningful numbers. But while the numbers sound impressive, they tell a more complicated story about where Hollywood finds itself right now.

Why $100 Million Feels Different in 2026

Here is the thing — a $100 million Memorial Day opening used to be considered a bit underwhelming. Back when the original Twister ruled the summer in 1996, a $100 million holiday opening would have been called mediocre. But as the Los Angeles Times pointed out this week while celebrating Twister's 30th anniversary, those glory days of massive theatrical production and guaranteed blockbusters are behind us.

Hollywood is in the midst of a production crisis. Studios are greenlighting fewer films, audiences have more streaming options than ever, and the days when a superhero or franchise movie automatically guarantees $200+ million openings are fading fast. The fact that Disney is celebrating a $100 million weekend as a win says everything about the current state of the industry.

Compare this to what Avengers: Endgame did in 2019 — a $357 million domestic opening that felt impossible to top. Now, The Mandalorian and Grogu's $98 million Friday-through-Monday domestic haul ($167 million global) is being called a success by executives. Times have changed, and the bar has shifted dramatically.

The Rest of the Memorial Day Box Office: Obsession Holds Strong

What made this weekend particularly interesting was that The Mandalorian and Grogu was not the only story. The horror film Obsession — a low-budget indie that has become one of 2026's most profitable films — had its second weekend and actually grew its audience, a rare feat that almost never happens in modern box office history. Starring Michael Johnston and Inde Navarrette, the film's word-of-mouth-driven surge has pushed it past $750 million worldwide, making it one of the most unlikely success stories of the decade.

Other films on the chart included Pressure, the WWII thriller starring Brendan Fraser and Andrew Scott from director David Ayer, which continues to hold steady despite limited screen availability — currently only playing on about 1,500 screens nationwide despite strong audience demand.

What This Means for Summer 2026

Looking ahead, the summer 2026 box office is projected to top $4.2 billion domestically — a modest recovery from recent years, but still well below pre-pandemic levels. With Toy Story 5 arriving in June from Pixar and Disney, The Furious bringing the Fast franchise back, and Supergirl entering the DC Universe race under James Gunn's leadership, there is still plenty of firepower left in the season.

But the message from this Memorial Day weekend is clear: audiences are selective. They will show up for Star Wars, for a great horror story like Obsession, and for films with genuine buzz. The days of autopilot franchise success are over, and that might actually be a good thing for cinema.

Are you heading to see The Mandalorian and Grogu this week? Let us know in the comments!