Why is Sara Lee stock a buy?
Sara Lee, best known for its familiar baked goods, also boasts many other branded food and non-food products, ranging from Ball Park franks to the Wonderbra. The company aims to build leadership brands in three highly focused global businesses: food and beverages, intimates and underwear, and household products. SLE has operations in 58 countries, and markets branded products in nearly 200 nations. In recent years, SLE has worked to reshape and refocus itself around its three core businesses. The company divested several businesses, including its PYA/Monarch foodservice operation (December 2000) and its Coach leather goods unit (April 2001). It regarded these businesses as valuable companies that did not fit its narrower business focus. SLE has been using proceeds from divestitures to repurchase stock, retire debt, and fund acquisitions. The company tripled the size of its bakery business with the August 2001 acquisition of The Earthgrains Co., one of the largest U.S. fresh bread compa
