Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: Frozen Pizza Recession Diet Staple


Brief scrutiny of today's headlines.

Investors may soon develop a taste for frozen pizza.

Recession-pinched consumers are eating out less, and that's good news for General Mills (GIS), maker of Totino's frozen pizza. Consumers are also buying more Progresso Soup, Betty Crocker dessert mixes and Yoplait yogurt in an effort to stretch the food budget.

General Mills reported a second quarter profit of $378.2 million, or $1.09 a share, compared with $390.5 million, or $1.14 a share for the same period a year ago. Excluding a write down for commodity hedges and a gain from selling Pop Secret popcorn, the company earned $1.36 a share. The consensus estimate was $1.23 a share.

The company's strong performance plays out against weak holiday sales and anemic auto sales. Consumers seek value and many find it in store brands at Wal-Mart (WMT), Safeway (SWY) and Kroger (KR).

Upscale retailers and restaurants are hurting, but McDonald's (MCD) said global same-store sales, or sales at outlets open at least a year, rose 7.7% in November and US sales rose 4.5%. The company credited strong sales of low-priced breakfast items, chicken sandwiches and its value menu.

Investors looking to plump their portfolios in a sour economy might consider looking at companies that offer consumers low prices and good value. For now, going downscale may be the way to boost returns.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos