Food & Beverage Buys: General Mills & Starbucks


Briton Ryle Image Briton Ryle Editor, The Wealth Advisory

Brit Ryle, editor of The Wealth Advisory, focuses on high quality, fundamentally attractive growth stocks for investors with a long-term time horizon. Here, he looks at two of his top holdings, both in the food & beverage sector.

General Mills (GIS) manufactures and markets branded consumer foods in the U.S. and internationally. The company has beat estimates in three out of the last four quarters.
Meanwhile, the stock is getting more interest as a takeover target. General Mills stock continued to trend upward last month as investors weighed the potential of an acquisition by 3G Capital.

Thanks to the thunderbolt that was the purchase of Whole Foods Markets (WFM) by Amazon (AMZN), pretty much every other food-related stock took a hit. But GIS remains a solid takeover candidate for 3G.

And the Amazon and WFM deal just proves that there’s a big shakeup coming in the grocery aisles. I wouldn’t be surprised to see a bid for GIS materialize soon. And even if that does take some time, we’re still holding a great stock.

It’s undervalued. It has a stellar management team that’s squeezing every penny possible out of revenues. And it’s paying us a solid dividend that has a 13-year history of annual increases. General Mills remains a “Buy” anywhere under $60.