- Bellwethers in the consumer staples sector such as General Mills don't seem like they're able to price successfully ahead of inflationary headwinds, and many are experiencing tremendous gross margin pressure.
- Branded staples may be experiencing demand (volume) destruction as consumers balk at price increases that still fall short of offsetting the heightened cost environment.
- Many consumer staples equities, including General Mills, have huge net debt positions and hefty dividend obligations, too.
- The outlook for many consumer staples entities is not pretty, and a company such as General Mills is not immune to the sector's troubles.
- We think General Mills is worth $62 per share, slightly lower than where shares are trading. The company sports a nice 3% dividend yield.
For further details see:
General Mills Is Not Immune To The Current Inflationary Environment