General Mills, Inc. (GIS), Kellogg Company (K), Post Holdings Inc (POST): Three Companies For Your Morning Breakfast Portfolio

Post Holdings Inc (NYSE:POST) also has grown the bottom line with new acquisitions and product expansion. Post Holdings Inc (NYSE:POST) is the third-largest seller of ready-to-eat cereals in the United States with a 10.4% share of retail sales. Growth has come through a variety of outlets, most recently the purchase of Hearthside Food Solutions. Hearthside will add $70 million to full-year sales and as much as $19 million to earnings for Post Holdings Inc (NYSE:POST). The company also bought Attune Foods last year to increase products in the organic food category. Expansions into the granola and organic category is a good strategic move for Post Holdings Inc (NYSE:POST), as breakfast foods continue to increase in nutritional value and organic offerings.

Post Holdings Inc (NYSE:POST) also recently decided to close its Modesto plant in California. According to Nielsen, a market research group, category growth declined 2.4% for the quarter. The closure of the Modesto plant will save $14 million dollars annually, and will free up revenue for future growth. Additionally, the acquisition of Hearthside includes a 135,000 square foot manufacturing facility, and a 30,000 square foot finished goods warehouse, both of which will be used for the production of Post cereal.

The bottom line

With better-than-average returns, and new innovation within the breakfast category, these three companies have produced rock-solid returns through recessions and depressions. With changing breakfast items and top-line revenue increasing with new innovation, all three of these companies are producing rock-solid returns by efficiently expanding into new categories and watching expenses as raw material prices increase.

The article Three Companies For Your Morning Breakfast Portfolio originally appeared on Fool.com and is written by Kaitlyn Tokay.

Kaitlyn Tokay has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Kaitlyn is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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