The second-largest U.S. cereal maker benefited from both increased sales of Cheerios cereal and Yoplait yogurt. The company also saw strong demand worldwide, especially for its Nature Valley grain snacks, Fiber One bars and Totino's pizza rolls. International sales had growth of 20% to $612.8 million, helped by the tumbling U.S. dollar.

During the period, General Mills had to face cost pressure brought by higher grain prices; surging oil prices increased demand for corn used to make the alternative fuel ethanol. However, the company was able to successfully surpass those obstacles by raising prices and improving productivity.

Looking ahead, the food maker expects to face some difficult times. The current market conditions and rising crude oil futures are a sign of further higher grain prices. Despite all these, General Mills believes that commodities and tax gains will help it to post full-year earnings between $3.45 and $3.47 a share. Analysts, on average, forecast full-year earnings of $3.47 per share.

Traders expressed their enthusiasm over the company's positive earnings and optimistic outlook and pushed the food maker 2% higher in early trading.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.