Could Blue Buffalo's Terrible Quarter Become a Long-Term Problem for General Mills?
From a high level, General Mills' (NYSE: GIS) fiscal 2023 second-quarter results looked very strong. When you dig in a bit, however, the company's pet food business was a notable standout, and not in a good way. Given that the major contributor to that business, Blue Buffalo, is expected to be a growth driver for the company, it's important for investors to understand what's going on. Here's a quick look at what you need to be watching.
Food maker General Mills posted a sales gain of 4% in the period while organic sales were up a lofty 11%. Earnings per share advanced 12% year over year. It would be very hard for investors to complain about those numbers, which were driven by price increases (which more than offset volume declines) and improving margins.
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Source Fool.com
