Almost every U.S. packaged food company is having difficulty growing volume these days, as consumers increasingly look to save a few bucks by going with store brands. General Mills (NYSE:GIS) is not the worst company out there today, and its long history of solid returns and dividends should count for something, but it surely is not the strongest either. While existing shareholders of this company may want to sit tight, there's no compelling reason to buy it today.
An In-Line Third Quarter
Given that General Mills warned the Street about this quarter back in February, there weren't too many surprises in store. While reported revenue was up 13%, the Yoplait acquisition made a significant impact and overall performance was basically flat on an organic basis. In the U.S. retail segment, sales did grow 4%, as a 5% volume decline was offset by a 9% improvement in price and mix.
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http://stocks.investopedia.com/stock-analysis/2012/For-General-Mills-Better-Means-Less-Bad-GIS-K-CPB-KFT0323.aspx
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