Pros and Cons of Investing in General Mills

PHOTO CREDIT: General Mills

OVERVIEW

PROS:

  1. General Mills also saw some positive benefits from the pandemic. As the first lockdowns went into place and as people worked from home, the company saw a rise in sales of packaged and frozen comfort foods. This initial rise in demand benefited the company as they were able to sell more products. This also benefited investors.
  2. The company offers a wide range of products to its consumers. From popular Cheerios to ice cream and other dairy products, the company has food for every consumer in most markets around the world. This wide range of brands has helped the company unlock new growth opportunities. This also benefited investors in the company.
  3. General Mills is a safe investment option in an investor’s portfolio. People will continue to purchase food regardless of the economic times, something that will help the company maintain sales and remain stable during tough economic times. This has benefited the company and its investors in the past.
  4. The company continues to see rising revenues and profits over the past couple of financial years due to the reasons mentioned above. This has helped the company acquire more food companies and grow its business. This has also benefited investors in the company. In the financial year of 2020, the company reported revenues of around 17.63 billion and profits of around 2.18 billion. Both of these metrics are higher than what the company reported in the financial year of 2019 when they had revenues of around 16.87 billion and profits of around 1.75 billion.
PHOTO CREDIT: Yahoo Finance

CONS:

  1. Inflation might cause the company to raise prices and squeeze the company’s profit margin. As commodity prices increase, the company will see costs to produce, package, and transport the food from factories around the world increase.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.