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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

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!