1. DISNEY REACHES ALL-TIME HIGHS, NO THANKS TO ABC
Walt Disney Company's strongest divisions — parks, cable, movies, and products — all played a part in boosting quarterly profit by 32 percent from a year earlier to $1.51 billion, topping analysts' expectations. Shares have risen to $66.07, up 51 percent in the last year. The only kinks in Disney's armor: The video game division and ABC broadcast network. Operating income at ABC fell 40 percent this year, from lower ratings and ad revenue. "We could use a few more new hits, and hits that we own," said Robert A. Iger, Disney's chairman. [New York Times]
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2. OBAMA ADMINISTRATION REVEALS MASSIVE PRICE DISCREPANCIES IN HOSPITAL COSTS
One New York City hospital charges $8,159 to treat complicated cases of asthma and bronchitis, while another — just 63 blocks away — charges $34,310 for the same procedures, says a new report on hospital charges that the Obama administration released to The Washington Post. According to the Post, the numbers show "a health-care system with tremendous, seemingly random variation in the costs of services." Joint replacement surgery can cost anywhere from $5,304 to $223,373. [Washington Post]
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3. COCA-COLA AGREES TO STOP MARKETING TO KIDS
To help combat criticism that its products play a role in the childhood obesity epidemic, Coca-Cola has agreed to stop marketing to kids under 12 everywhere in the world, while at the same time encouraging physical activity programs in all the countries its products are sold. In the U.S., 41 percent of Coke's sales are no-calorie drinks like Diet Coke and Coke Zero — and the company plans to push that trend to other countries as well. [Wall Street Journal]
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4. LAY'S NEWEST FLAVOR: CHEESY GARLIC BREAD
It's official: Cheesy Garlic Bread beat out Sriracha, and Chicken and Waffles in Lay's Do Us a Flavor Contest. Winning participant Karen Weber-Mendham either $1 million, or 1 percent of the flavor's net sales — whichever is higher. Company spokesperson Eva Longoria will announce the win officially this evening at a special Frito-Lays party in Los Angeles. [Business Insider]
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5. FREDDIE MAC TO PAY TREASURY $7 BILLION FROM PROFITS
After finishing the last quarter with a net worth of $10 billion, Freddie Mac will pay the treasury $7 billion — a requirement of the company's conservatorship with the federal government that began in 2008. "Not surprisingly the strong rebound in the housing market of which we're all aware continued to be reflected in our excellent financial performance in the first quarter," Freddie CEO Don Layton told reporters. Freddie Mac, along with Fannie Mae, has stopped paying 10 percent dividends that have returned $65 billion to Treasury, and must now turn over profits above $3 billion. [Bloomberg]
