Has General Mills, Inc. (GIS) Become the Perfect Stock?

General Mills is a stalwart in the food industry. Although it’s most famous for its breakfast cereals, the company has a wide array of offerings, including Yoplait yogurt, Progresso soups, and Totino’s pizza.

Yet, General Mills, Inc. (NYSE:GIS) and other premium food brands are under attack from private-label brands, which offer cheaper prices. Already, ConAgra Foods, Inc. (NYSE:CAG)‘s  buyout of Ralcorp has boosted its presence in the private label arena. More importantly, grocery store chains see private-label brands as a way to boost margins, with SUPERVALU INC. (NYSE:SVU) adding substantial presence in the area to try to keep its profits up. Even Whole Foods Market, Inc. (NASDAQ:WFM) has added private-label brands, leveraging its own brand to sell premium products.

In response, General Mills is trying to modernize its lineups in order to keep up with the competition and keep its business exciting. Both General Mills and Kellogg Company (NYSE:K) have recently come up with competing breakfast shake products, with General Mills testing its BFast brand to go up against Kellogg’s Breakfast To Go.

One reason General Mills’ stock has risen is the interest in the food industry after H.J. Heinz Company (NYSE:HNZ) received an acquisition bid. Investors clearly hope that General Mills might join the consolidation party, but further moves seem unlikely given current valuations.

For General Mills, Inc. (NYSE:GIS) to improve, it needs to work on cleaning up its balance sheet. With solid dividends, General Mills would look even more attractive if it reduced its debt and thereby got a little closer to perfection.

The article Has General Mills Become the Perfect Stock? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Supervalu and Whole Foods Market.

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