Tuesday morning, Kellogg (K) announced that its third-quarter net income dropped 6% thanks to slumping cereal sales. In addition to the weakening cereal sales, Kellogg saw competition strengthen and continuing impact from a cereal recall.

First things first, the cereal king reported earnings of 90 cents per share ($338 million), which came in lower than last year's earnings of 94 cents per share ($361 million).

Bright and early this morning, General Mills (GIS) served up a heaping bowl of earnings for investors and analysts to digest while eating their breakfast. The company announced that stronger sales in cereal as well as organic and natural product pushed its first-quarter earnings 12% higher.

For the most recent quarter, GIS raked in 70 cents per share -- better than last year's earnings of 62 cents per share. GIS's adjusted earnings came in at 64 cents per share, topping the consensus estimate by a penny. As for revenue, the $3.53 billion for the quarter was better than a year ago but just shy of the consensus estimate of $3.57 billion.

General Mills (GIS), a business in constant battle with fellow cereal concern Kellogg (K), saw some weakness Wednesday following its fourth-quarter release, which was posted Tuesday after the bell. But should a long-term investor care? No. It isn't a big deal.

The stock has been relatively decent over the last twelve months. Shares are currently closer to the 52-week high of $38.98 than they are to the 52-week low of $27.64. Here's something else that might put today's slide into perspective: a couple days ago, management announced a 17% increase in the dividend; the new quarterly payment has been set at 28 cents per share. At the time of this writing, the company had a bid of $35.65. Such a price bestows upon the equity a yield of better than 3%.

Trix are for kids ... but they are getting a little less sweet. General Mills (NYSE: GIS) has announced plans to reduce the amount of sugar in the cereal brands it markets to cereal. This includes Lucky Charms, Trix, and Cocoa Puffs, the latter of which could see its sugar content drop up to 25% from its original level (and 18% from its current 11 grams per serving).

Fans of Franken Berry and Boo Berry can rest assured - these cereals will still contain their 12 grams of sugar, as they are not actively marketed to children. Though with their cartoon characters and marshmallows, I find it hard to believe that these are meant for an adults-only demographic.

The Minneapolis-based company says the move is responding to consumer demand for less sugar. It also failed to disclose how it would cut the sugar content, but did pledge not to use artificial sweeteners.

Kellogg Company (NYSE: K) is another one of those sleep-well-at-night consumer non-cyclical stocks, hence it goes without saying that I'm reiterating my Buy rating for the company, first recommended on April 13, 2009 at a price of about $40. If you purchased K at that time, you're up 15%.

Look for Kellogg's FY2010 revenue to increase a decent 4-6%, aided by tolerable commodity cost increases, and modest pricing power.

Kellogg Company (NYSE: K) didn't need a hearty breakfast to get its stock going today (although I'm sure it had one anyway). All it needed was a reasonably healthy earnings report. Judging by how the stock is performing, I think the company got one.

For the third quarter, Kellogg saw flat sales growth. However, take out currency effects and acquisitions, and you've got a 3% expansion rate on the top line. Well, that isn't so robust, either, but let's head to the bottom line. Earnings per share came in at 94 cents, representative of a 6% increase. Not so bad, and according to Mark Fightmaster's preview, that was a dime better than what analysts wanted to see.

Before the market opens on Thursday, October 29, cereal producer Kellogg (NYSE: K) will release its third-quarter earnings. Analysts expect the company to earn 84 cents per share in the quarter, with revenue of $3.28 billion.

In the second quarter, Kellogg saw its profit increase 13%, which gave the cereal thriller reason to up its full-year forecast. Before the second-quarter report, Kellogg expected high single-digit-percentage growth for 2009; however, this was upped to 8% to 10% following the strong second quarter. In addition, Kellogg believes it will save $1 billion annually by the end of fiscal 2011. This money will then be reinvested into advertising, which could lead to more money for the company.

Let's file this under something that didn't need to happen (kind of like a Bob Dylan Christmas album) -- if the story is real. Apparently, Kellogg (NYSE: K) is planning to battle the rampant counterfeit cornflake market by individually laser etching its name into each of your cornflakes. Seriously, the Guardian quotes Kellogg's as stating, "Now you'll be able to tell your Corn Flakes from you corn fakes!"

So, is it real? It seems like a good number of bloggers feel that this is a hoax, but there are others that are covering the story like it is true news. So are we dealing with a master hoax or reality? We will find out in the coming days, I am sure, but let's treat this like it is real. Could you imagine personalized Corn Flakes? Perhaps we could call them (insert your own name here) Flakes, with your last name etched into each corn flakey little morsel. The possibilities are endless: advertising, wedding proposals, birthday wishes. Of course someone would have to read the flakes before they get soggy.

How about a little upgrade with your Tuesday morning breakfast? Morgan Stanley thought it was a good idea, boosting General Mills (NYSE: GIS) to Overweight from Equal-Weight and added it was late in making the upgrade.

The brokerage cited valuation as the reason for the upgrade, noting that GIS is "one of the best positioned" companies in the realm of food. Morgan Stanley felt that this was not reflected in GIS's valuation, so it upped the food firm and raised its price target to $72 from $64.

Those Cheerios commercials must be working. General Mills (NYSE: GIS) reported on Wednesday that its profit for the first quarter of its fiscal year spiked 51%, thanks to a hefty dose of product demand and lower costs for ingredients. Of course, this beat the hell out of analyst expectations. And, it caused General Mills to boost its outlook for the year.

For the quarter, General Mills posted $420.6 million in earnings ($1.25 per share). For the same quarter a year ago, earnings reached only $278.5 million ($0.79 a share). The company's profit was a tad higher when an expense related to commodity positions is excluded, pushing earnings per share up to $1.28. Analysts had expected earnings of $1.03 a share.

Kellogg (NYSE: K), the famous cereal concern that competes with General Mills (NYSE: GIS), distributed a box of Q2 earnings to the market yesterday. Were they as nutritious as one of the company's breakfast foods?

Everything turned out all right for shareholders. Sales weren't so hot: the top line decreased 3% on dollar pressures. Earnings per share saved the day, coming in at 92 cents, good for a 12% increase. The income amount also beat expectations by a very significant margin. Analysts wanted to see at least 83 cents for per-share profit, according to Earnings.com.

Regular readers know that the investment bias here is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable, global trend as a support. And with this in mind, General Mills (NYSE: GIS) is worth a review.

In general, analysts see 2009 revenue increasing 7-10%, which, under these economic conditions, is enough to warrant throwing a party. Some negative headwinds created by a relatively stronger dollar should be offset by institutional investors stocking up on defensive shares. (Those same institutional investors are gradually adding cyclical and riskier shares, hence they have to balance it out somewhat, to GIS's benefit.)

General Mills (NYSE: GIS), a company that is always in a fight with Kellogg (NYSE: K), reported earnings for the fiscal first quarter on Wednesday. The stock held up very well amid all the chaotic selling that gripped Wall Street on that awful day. And why not? You know the drill. This is a defensive name, people still have to eat cereal while the bears are knocking at the door, etc.

The quarter was pretty good. Sales increased 14% to $3.5 billion. Adjusted earnings per share increased 19% to $0.96 (this excludes the effect of a mark-to-market valuation involving commodities). As if all that wasn't enough, there was a huge increase in net cash from operations. Last year at this time, General Mills generated about $21 million in operational cash flow. This year's quarter saw that metric jump over ten times to nearly $226 million. There was one problem, however. Capital expenditures and dividend obligations were higher than that number. I generally like to see operational cash easily take care of both those requirements.

Alas, it was not to be this quarter. That's okay. I think General Mills is a healthy company, and I believe it will continue to be able to pass along price increases to help fortify its bottom line. Guidance for fiscal 2009 was increased to $3.81 to $3.85 per share. The old outlook called for $3.78 to $3.83. And as for the cereal-maker's stock, it has been very, very strong. General Mills' stock was up more than 20% year-to-date. Over the last month, it's been up 3%. Heck, I'd take that, all things considered. It's not far from a 52-week high.

Personally, I think General Mills is a great way to tackle the bears that are patrolling the market, but I'd wait for a pullback. I'd rather look at the company when its dividend yield is a little higher than where it currently stands. If I bought now for a trade, I would definitely use a stop to protect the position. As I've said before, there aren't many safe bets in this environment.

Disclosure: I don't own any company mentioned; positions can change at any time.

General Mills (NYSE: GIS), arch competitor of fellow cereal seller Kellogg (NYSE: K), posted some good news for shareholders on Monday. In an otherwise gloomy day that saw the Dow remain below the 12,000 level and inflationary pressures still exerting a hold over the market, General Mills proved that dividends are at least one island of safety in a sea of trouble.

The company indicated that it will now pay an annual dividend of $1.72 per share. Previously, the annual dividend was set at $1.57 per share. This is a nice example of double-digit appreciation of approximately 10%. Based on Monday's closing price, General Mills' stock now yields a hearty 2.7%.

As a long-term idea, General Mills is certainly one of the best. As I observed with Kellogg, you can put this one on perpetual dollar-cost-averaging. However, with the stock in 52-week-high territory, and with prices for commodities, especially corn, still exerting a negative effect on businesses, I'd be a bit cautious about entering just now. Is it possible one might get General Mills closer to a 3% yield? I can't predict the short-term future, but my gut says that a pullback is inevitable. Even with cool dividend increases, stocks can return to the low end of a 52-week range at any point. Just look at Coca-Cola (NYSE: KO) and the recent pressure its stock has been under. And Coke is a dividend stalwart. Nevertheless, I am bullish on General Mills' future. Just watch out for commodity trends, and perhaps remain patient for better prices on the shares.

Disclosure: I own Coke; positions can change at any time.

With the U.S. economy still exhibiting signs of anemic growth (or worse), it's best to consider including a few defensive stocks in your portfolio, and with the aforementioned in mind, General Mills is worth an evaluation.

General Mills, Inc. (NYSE: GIS) is the second largest U.S. producer of ready-to-eat breakfast cereals, including several iconic brands, and is a leading producer of other packaged consumer foods.

Most analysts see GIS's FY 2008 revenue advancing 6-8%, followed by a 7-10% rise in FY 2009.

Analysts also like the fact General Mills has braced itself for the higher-cost commodity era as a result of efficiency improvements, productivity gains, and a more-favorable product mix. The Reuters FY 2008/FY 2009 EPS consensus estimates for GIS are $3.48 to $3.78.