General Mills, Inc. (GIS): Is It Time to Stock Up?

Page 1 of 2

When you think General Mills, Inc. (NYSE:GIS), you probably think of Cheerios. Maybe even Honey Nut Cheerios. But the brands it owns — and the land it operates in — are vast. If you had no clue the company earns as much in the Asia and Pacific region as it does in Canada, and that international revenue has grown 23% over the past nine months, you should probably take a second glance at this seemingly boring stock.

General Mills, Inc. (NYSE:GIS)Solid and growing
Of course, General Mills, Inc. (NYSE:GIS) makes plenty of cereals, like Lucky Charms. And a quick aside, adults make up almost half of Lucky Charms eaters, and a new ad campaign targeting the older crowd helped the sales of the cereal increase 16% since January. Beyond cereal, General Mills, Inc. (NYSE:GIS) dishes out Progresso soup, Pillsbury rolls, Yoplait yogurt, and Nature Valley bars, among plenty of other goods.

Since purchasing Yoplait in 2011, the company has had a foothold in the growing Greek yogurt segment. But the company has significantly beaten the industry’s growth: While Greek yogurt sales have jumped 49% over the past nine months, Yoplait Greek increased sales 137%. In 2012, Yoplait made up 13.5% of U.S. revenue for the company.

In a small acquisition spree last year, General Mills, Inc. (NYSE:GIS) acquired Food Should Taste Good, maker of natural snacks, and Yoki Alimentos, a Brazilian food maker. CEO Ken Powell said in the latest conference call that Yoki sees double-digit sales growth in its largest businesses including popcorn, seasonings, and side dishes. Food Should Taste Good adds to General Mills, Inc. (NYSE:GIS) aim toward healthy products. As Powell describes it:

…we’re now one of the leading sources of whole grain in the country and done things like reduce sugar… Our snack bar franchise, I think, is strongly health-oriented, that’s really one of the key appeals of that product line. Then as you go down the list, our Progresso Soup business, our Green Giant business, the entire yogurt category… just as an example recently we took the high fructose corn syrup out of Yoplait Original.

For the U.S. consumer who is focused more on health, or the emerging market consumer who wants the convenience of microwave popcorn or luxury of Haagen-Dazs, General Mills, Inc. (NYSE:GIS) is positioned to deliver.

Healthy management
But even a seemingly strong business can be ruined by the wrong leaders. Thankfully, General Mill’s (NYSE:GIS) leaders have proven themselves worthy of an investment. Powell has worked for the company since 1979 and CMO Mark Addicks since 1988 and the story is the same for many of General Mills top executives. Since Powell became CEO in 2007, General Mills stock has returned more than 100%, while the market returned 17%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!