Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 13, 2024

Article Excerpt

GENERAL MILLS INC., $73.71, New York symbol GIS, is still a hold. This consumer staples giant is one of the world’s largest foodmakers. Its top brands include Cheerios (cereal), Pillsbury (baking dough), Progresso (soups and salads) and Blue Buffalo (pet food), which it acquired in April 2018 for $8.0 billion. The company has agreed to sell its North American yogurt business. That includes major brands such as Yoplait, Liberté, Go-Gurt, Oui, Mountain High and :ratio. French dairy producer Lactalis will buy the U.S. business, while a second French firm, Sodiaal, will acquire the Canadian operations. In all, General Mills will receive $2.1 billion when it completes the transaction in 2025. To put that in context, it earned $2.50 billion, or $4.31 a share, in the fiscal year ended May 26, 2024. The company plans to use the cash for share buybacks. The sale is part of a plan to narrow the company’s focus to its most-profitable brands with stronger prospects. However, cash-strapped consumers are switching…