Brands are funny things. Everybody knows that they have value, but nobody is ever really sure just how much value they have. Looking across the packaged food sector these days, it seems like the companies with the winning brands are doing quite well for themselves. That is one possible explanation, then, for why General Mills (NYSE:GIS) continues to grow while its rivals struggle with weak volumes.
The Good News
To be sure, General Mills' fiscal first quarter results were nothing to be framed and put on the wall; sales growth was about 1.3%, as higher volumes fueled the growth. Cereals and yogurt were leaders in the U.S. retail business, helping to offset some weakness in the Pillsbury lines. Even if sub-2% growth is not a cause for celebration, General Mills does deserve praise and respect for continuing to grow at a time when rivals like Del Monte Foods (NYSE:DLM), Kellogg (NYSE:K) and ConAgra (NYSE:CAG) are having a much harder time of it.
To read the complete article, please continue to:
http://stocks.investopedia.com/stock-analysis/2010/General-Mills-Succeeds-In-A-Shaky-Sector-GIS-DLM-K-CAG-HSY-WMT0924.aspx
Showing posts with label Del Monte Foods. Show all posts
Showing posts with label Del Monte Foods. Show all posts
Friday, September 24, 2010
Thursday, September 23, 2010
ConAgra Looking To Go From Stale To Fresh
It looks like reality is giving conventional wisdom another punch to the gut. Although food stocks are supposed to be good places to hide out during tough economic times, some of the major food shares have not done all that well over the past year relative to the broader market. Given how ConAgra's (NYSE:CAG) business performed over the past quarter, it is not hard to figure out why the stock has lagged.
The Quarter That Was
All in all, it is hard to say that ConAgra's performance in its fiscal first quarter was much better than lousy. Sales dropped more than 2% for the quarter, led by a 3.2% decline in commercial food sales. Although management did seem to say that the company had gained some market share during the quarter, the relatively better performance of General Mills (NYSE:GIS) puts that into at least some doubt. Then again, Del Monte Foods (NYSE:DLM) showed some volume weakness as well, so investors probably ought to be cautious about making "apples to not-exactly-apples" comparisons between the major food companies.
Please follow the link to read the full article:
http://stocks.investopedia.com/stock-analysis/2010/ConAgra-Looking-To-Go-From-Stale-To-Fresh-CAG-DLM-GIS-K-KFT-HNZ0923.aspx
The Quarter That Was
All in all, it is hard to say that ConAgra's performance in its fiscal first quarter was much better than lousy. Sales dropped more than 2% for the quarter, led by a 3.2% decline in commercial food sales. Although management did seem to say that the company had gained some market share during the quarter, the relatively better performance of General Mills (NYSE:GIS) puts that into at least some doubt. Then again, Del Monte Foods (NYSE:DLM) showed some volume weakness as well, so investors probably ought to be cautious about making "apples to not-exactly-apples" comparisons between the major food companies.
Please follow the link to read the full article:
http://stocks.investopedia.com/stock-analysis/2010/ConAgra-Looking-To-Go-From-Stale-To-Fresh-CAG-DLM-GIS-K-KFT-HNZ0923.aspx
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