Entering text into the input field will update the search result below

General Mills: The Time To Begin Buying Approaches


  • The company indicated that it competes in a challenging era where the pace of change is greater than ever and it needs deliver innovation-driven revenue growth.
  • The company initiated a new global organization structure and accelerated cost savings efforts, but admits it reduced investments in key product categories too much and its execution suffered.
  • The company’s main goal for fiscal 2018 is to return its business to sustainable revenue growth, while also investing in innovation to accelerate growth.
  • Priorities to drive revenue growth include growing its global cereal platform; improving its yogurt performance; investing in product platforms; and managing its foundation brands.
  • Investors should begin buying shares to collect about a 3.5% dividend yield as the company works to reignite its yogurt business and moves into the functional food market.

General Mills' (NYSE:GIS) shares are languishing as it continues its efforts to turnaround the embarrassing performance of its yogurt business and to adapt to changing consumer food trends. As we review financial media reports about the company, we are getting a sense that negativity is peaking in regard to the company and a buying opportunity is beginning. While the company's shares could fall further on a strong overall market sell off along with rising interest rates, the time has come to begin purchasing shares to capture a 3.5 percent dividend to reinvest. Long-term conservative investors should not fear an investment in GIS's shares in the face of the negative media attention. Rather, investors should embrace the opportunity to buy into this dividend growth stalwart at a more value-oriented price while they can. As our readers should remember, we never bet against any of the major American food giants as they have too many levers to pull to drive growth including internal innovation, acquisitions and divestitures. As we have stated in past articles on GIS, the company's struggles are not solely related to market based changing consumer trends, but also its missteps in their effort to drive growth in its yogurt business. (In 2016, nine of the top ten yogurt brands recorded increased sales and only GIS was the exception.)

While GIS has yet to be able to capitalize on increased consumer demand for Greek yogurt while its competitors have been able to do so, it is also: 1) making its legacy food products healthier; 2) innovating internally to create healthier foods; 3) investing in start-up companies that serve the "functional food" market; and 4) divesting fading legacy products while also acquiring companies serving the healthier organic/natural food market. With the company's efforts in mind, let us look briefly at its latest quarterly results. In GIS'

This article was written by

Long only....a portfolio of 50 to 60 almost all dividend stocks. A contrarian that follows stocks with multiple insider buys.

Analyst’s Disclosure: I am/we are long GIS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.