Mike Arnold
Value, growth at reasonable price, long only, tech

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details