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 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!