Mike Arnold
Long only, small-cap, tech, growth at reasonable price

The Margin Expansion Story At Hillshire Brands Makes Shares Attractive

Hillshire Brands (NYSE:HSH) ("Hillshire" or "the company") is a year old spin-off from Sara Lee and the owner of a collection of iconic meat brands including Jimmy Dean, Hillshire Farm and Ball Park. As such, Hillshire refers to itself as a meat-centric company (about 90% of sales), which I would call an accurate assessment. The remaining 10% of sales comes from Hillshire's bakery business.

The 2012 Sara Lee breakup has been particularly accretive to shareholders, which left Hillshire with the meat and bakery businesses, and D.E. Master Blenders with the coffee business. D.E. Master Blenders subsequently received a go private offer from a private equity firm in Europe, Joh. A. Benckiser, the architect of the Peet's Coffee go...

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