I Bought General Mills Stock On Monday
Summary
General Mills is a high quality (strong financials) that has grown its dividend on a consistent basis.
Its stock has declined reflecting short term earnings problems.
This is an opportunity to buy shares.
To be sure, there are reasons GIS shares have fallen.
1. It's revenues have stagnated and that is not going to turn around in a quarter or two,
2. Margins declined as a result of rising commodity prices and increasing supply chain [freight] costs,
3. Potential negative short term impact of the acquisition of Blue Buffalo (NASDAQ:BUFF)
Efforts by the company to overcome those difficulties:-
1. Investing in new product innovation [Blueberry Chex, Cheerios granola], expanding its offerings in its current line of organic products [yogurt, snack bars] as well as a stepped up marketing effort,
2. Building a more organic product line through eliminating artificial flavors and colors, reducing the sodium content,
3. Improving its e-commerce business,
4. A major restructuring and cost savings effort [supply chain optimization, reduced operational complexity] and
5. Acquisition of BUFF.
Source: Seeking Alpha
https://seekingalpha.com/article/415993 ... ngcom_feed