Monday, September 10, 2012

General Mills (GIS) 2012 Review

General Mills Inc., GIS, processes and markets such well known products as Cheerios, Wheaties, Total, Chex, Betty Crocker, Bisquick, Hamburger Helper, Yoplait and Progresso. 

The company has grown profits and dividends at a 7-10% pace over the last ten years earning a 20%+ return on equity. This performance should continue as a result of:

(1) an outstanding portfolio of fast growing brands

(2) a steady pipeline of new products which enhance sales and take market share,

(3) an aggressive cost cutting program,

(4) expansion into emerging markets which should account for 70% of food growth though 2012,

(5) acquisitions (latest: Yoplait Int’l, Parampara Foods [India], Yoki [Brazil])

(6) management is committed to enhancing shareholder value via increasing dividends and share buy backs.

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