Gabelli Reports Continuing Momentum For General Mills

According to Gabelli, General Mills GIS continues to drive momentum in its faster growing, higher-margin categories, including Big G cereal, snacks and yogurt. Gabelli reported that, going forward, there is ample opportunity to continue to improve upon profitability, particularly its international segment (including CPW joint venture). “The pending acquisition of a 51% stake in the operating company and 50% stake in the company which owns the Yoplait brand from PAI represents an opportunity for GIS to partner with Sodiaal to manage the yogurt business and to expand the Yoplait brand into new markets. General Mills is trading at approximately 8.6x 2012P EBITDA and 13.4x P/E. PMV of $57 in fiscal 2012.” General Mills closed yesterday at $36.24.