MCDONALD’S BEATS EXPECTATIONS

McDonald’s has reported its quarterly earnings and revenue outcomes, exceeding expectations due to the ongoing popularity of Big Macs and Shamrock Shakes among U.S. consumers. The company’s net income rose to $1.8 billion from $1.1 billion last year, and its three divisions all saw same-store sales growth of 12.6%. The company experienced higher than expected same-store sales growth in the U.S. due to increased traffic and menu prices. Additionally, McDonald’s saw better-than-expected sales in its international markets, including the UK, France, Germany, Australia, China and Japan.

GENERAL MOTORS RAISES EARNINGS FORECAST

General Motors (GM) has raised its full-year profit and cash flow forecasts as it has experienced strong demand and higher prices, despite a decrease in pre-tax profit in the first quarter. The automaker expects full-year pre-tax profits to be between $11 billion and $13 billion – up $500 million from its previous forecast. In addition, automotive cash flow is expected to be between $5.5 billion and $7.5 billion. Nonetheless, pre-tax income from GM’s China joint venture operations fell by 50% due to a decline in unit sales.

UPS REVENUE DECLINES

Delivery company UPS realeased its earnings report for the first quarter, which indicated a 6% decline in consolidated revenues and a 21.8% drop in operating profit compared to the same period the previous year. The decrease in sales volume was attributed to declining U.S. retail sales and weak demand in Asia. To overcome this, UPS plans to focus on controlling costs and investing in growth initiatives to make the company stronger in the long run. Although UPS’s results matched Wall Street’s expectations, the management is under pressure to maintain profit margins while prioritizing the diverse interests of their workers and shareholders.

FIRST REPUBLIC BANK’S DEPOSITS PLUNGE

First Republic Bank’s quarterly results were worse than expected, with a 41% drop in customer deposits to $104.5 billion. This decline is attributed to the recent regional banking crisis and rising interest rates that have led wealthy clients and businesses to withdraw their funds. Consequently, First Republic Bank plans to cut 25% of its workforce and lower loan balances in order to address the issue. Nevertheless, analysts are concerned that high funding costs will continue to limit the bank’s ability to make a profit on loans in the future.

UBS FACES CHALLENGES OVER U.S. MORTGAGES WHILE ACQUIRING CREDIT SUISSE

UBS, Switzerland’s largest bank, has set aside additional funds to address issues related to problematic U.S. mortgages. This has caused a 52% fall in UBS’s quarterly income, highlighting the challenge of acquiring Credit Suisse, with full integration possibly taking as long as four years. Furthermore, UBS is preparing to deal with thousands of job cuts as part of their agreement with Credit Suisse. Despite downsides, UBS continues to see strong inflows, including $28 billion in their flagship wealth management division.