Jim Cramer - Mad Money
General Mills
GIS-N
PARTIAL BUY
Dec 16, 2022
Up 29% this year. They report Tuesday. They've gotten away with global price increases, because they have the best brands, including pet food. Even reporting a great number, he doesn't know how much more it can rally. But the market is getting oversold, so GIS can still work.
Reported a winning quarter today. Organic net sales jumped, operating profit up 85%, and announced a 6% dividend boost. They re-shuffled their portfolio to emphasize high-end pet food (up 22%) and food service (25%). Shares jumped 6% to a new high today, but would've gone higher if not for market negativity.
Their outlook is dimming as the wider economy weakens, and they're shifting to more value-oriented products for pets. He thought pet food was a more reliable product category but now this is can be slippery.
They report Wednesday; can they turn things around after sales faltered last quarter? Their high-end pet food business has stalled and Zoetis revealed that pet spending is slowing.
It reports Wednesday. He suspects shares have been out of fears of the new weight-loss drugs eating into their snack-food sales. That said, every package food company that has reported has reported no slowdown, and those stocks rallied. GIS also had a good pet food business.
They report Wednesday. They just sold their North American yogurt business for $2.1 billion, while their snacks and pet food visions are strong. The stock is a bargain now.
Was upgraded today based on accelerating pet food sales. It reports Wednesday. He thinks that the incoming Health & Human Services Secretary, Robert Kennedy, will promote healthy eating, which clashes with GM's money-making sugary cereals.
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