General Mills Proves Me Right!
General Mills (NYSE: GIS) is an iconic name in the packaged food space. However, when I stepped in to buy shares in May of 2018, it was struggling to grow its business. In fact, just a couple of months earlier it had made a massive strategic shift to help with that effort.
I bought shares betting that it was a good move, and the results posted in its second-quarter 2020 earnings report strongly suggest that General Mills has finally proved I made the right call.
It seems like so long ago now, but in 2018 General Mills was dealing with weak performance in key food categories, including yogurt and cereal (among others). Selling packaged food is usually a slow-growth business, but General Mills was struggling with market share and had missed major industry trends (most notably the rise in popularity of Greek yogurt). The stock had sold off heavily, dropping around 45% between late 2016 and mid-2018 on concerns that the food maker had lost its way.
Source Fool.com
