Can General Mills' Top-Line Gains Persist?

We were pleased to see wide-moat

The convenience store and foodservice segment was a key driver of organic growth, with sales up 5% (60% of which was driven by volume), reflecting General Mills’ leading position in the foodservice category (where it has the top share in cereal, yogurt, and K-12 frozen meals). While organic growth remained flat in the North America retail segment, we expect the firm’s long-standing retail relationships will allow it to secure prime shelf space for new products, like Chocolate Peanut Butter Cheerios and Oui by Yoplait, even as the center of the store remains challenged. Moreover, we were pleased to see new offerings drive mid-single-digit growth in the domestic cereal (17% of sales) and snack (21% of sales) categories.

Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.