The ratings on Sara Lee Corp. and wholly owned subsidiary, The Earthgrains Co., reflect its diversified product portfolio, brand leadership, and solid cash flow generation. This is offset by a moderately aggressive financial risk profile. Sara Lee's business profile reflects brand leadership in many of its categories and extensive product and geographic diversity across its portfolio. The company has had considerable success in building very strong category positions through organic growth and a focused acquisition strategy. Although Sara Lee's broad array of product categories may appear unrelated, many share common key success factors, namely brand strength and critical mass. The company emphasizes the creation of branded products that command pricing premiums, providing opportunities for margin enhancement and improved profitability. Products...
Companies mentioned in this report are: Sara Lee Corp.
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