Markets

General Mills (GIS) Recalls Yellow Box & Honey Nut Cheerios

General Mills Inc.GIS recently issued a product recall of original Cheerios and Honey Nut Cheerios cereal manufactured at its Lodi, CA facility on certain dates in July owing to the presence of an undeclared allergen - wheat. The Class I recall includes 4 days of original (yellow box) Cheerios and 13 days of Honey Nut Cheerios production.

An isolated incident at the facility, where wheat flour was unintentionally introduced in the gluten-free oat flour system, led to this recall. Since wheat is an allergen, these products are not suitable for consumers with wheat allergies, celiac disease or gluten intolerance. However, claimed managemen that other General Mills cereals are safe for consumption.

Just last week on Oct 2, the company recalled a limited quantity of frozen Cascadian Farm Cut green beans after bacteria was found in one package.

The package tested positive for the presence of a form of bacteria - Listeria monocytogenes - which prompted management to recall it as a precautionary measure.

Moreover, last August, General Mills recalled 10-ounce bags of the same brand of green beans due to the presence of Listeria bacteria in a pack.

We note that in Sep 2015, General Mills announced definitive plans to sell the Green Giant and Le Sueur brands of frozen and shelf stable vegetables to food manufacturer B&G Foods, Inc. BGS in a cash transaction worth approximately $765 million.

Off late, General Mills' profits were being affected negatively by Green Giant. Previously, in July, the company stated that it is pulling back resources from the underperforming business which was bearing the brunt of lower demand for processed and packaged food. Instead, the Zacks Rank #4 (Sell) company redirected the resources to turn around other businesses within the struggling U.S. Retail segment.

Stocks to Consider

A couple of better-ranked stocks in the food sector are Cal-Maine Foods, Inc. CALM and Omega Protein Corporation OME , both sporting a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

GENL MILLS (GIS): Free Stock Analysis Report

B&G FOODS CL-A (BGS): Free Stock Analysis Report

CAL-MAINE FOODS (CALM): Free Stock Analysis Report

OMEGA PROTEIN (OME): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CALM GIS BGS

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More