Sara Lee: Cooking Up Profits in 2010 - TheStreet

Sara Lee: Cooking Up Profits in 2010

Sara Lee stock gains ground Monday on the heels of a report that investors can expect to see shares of the consumer goods company surge 40% in 2010.
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NEW YORK (

TheStreet

) --

Sara Lee

(SLE)

stock has gained ground Monday on the heels of a report that says investors can expect to see shares of the consumer goods company surge 40% in the next year to $16.50, aided by the company's proactive cost-saving measures.

The

Barron's

report says that the selling of

noncore businesses

and cost-cutting measures undertaken by Sara Lee's CEO Brenda Barnes should save the company up to $100 million, in this year alone. Barnes' strategy also involves focusing and bolstering its product offerings with new food creations.

New Jersey-based private investor James Lane has joined Gamco Investors,

Soros Fund Management

and

Pzena Investment Management

in buying up shares of Sara Lee.

Barron's

quotes him as saying that the "new" Sara Lee is "either going to earn more and be more focused on its branded companies, or it's going to become part of another company."

Barron's

adds that Sara Lee has an attractive dividend yield of 3.6%. In the company's first quarter fiscal 2010 earnings report, Sara Lee raised guidance for fiscal 2010 adjusted EPS by 6 cents, to a range of 90 cents per share to 96 cents per share.

Sara Lee stock has added 2.3% to $12 in afternoon trading, while consumer goods stock

Procter & Gamble

(PG) - Get Report

has risen 0.5% to $60.60.

Meanwhile,

ConAgra Foods

(CAG) - Get Report

is up 0.3% to $23.20, while

Flowers Foods

(FLO) - Get Report

has fallen 0.5% to $24.40.

-- Reported by Andrea Tse in New York

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>>P&G Drops $470M for a Sara Lee Brand

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