Coming off a robust fiscal first quarter, General Mills (GIS 1.93%) just raised its full-year outlook for organic net sales, earnings-per-share growth, and operating profit. And investors seem to like it -- General Mills stock has closed at new all-time highs for two days in a row.

Let's take a closer look at General Mills, how the company beat earnings estimates, and why the food stock is repeatedly printing new all-time highs lately.

Relentless innovation

Known for "Making food the world loves," General Mills' family of brands includes Cheerios, Betty Crocker, and Häagen-Dazs. The company's seemingly endless lineup of household-name food brands stacks up to a major presence in the grocery store.

From a single Gold Medal Flour mill in 1866 to over 100 brands in 100 countries, General Mills has flourished through diverse economic conditions, including the Great Depression and two world wars. To keep competitive in this dog-eat-dog space over the years, General Mills has continually refined and optimized its portfolio of brands.

Known for "relentlessly innovating," General Mills regularly prospects for new high-growth-potential brands while prioritizing and managing its primary markets. In other words, General Mills is not shy about scooping up a brand it likes when the opportunity is right and also dumping out stale brands that have lost their flavor.

The company's $10.5 billion acquisition of Pillsbury in 2001 made General Mills the third-largest food company in North America and the fifth-largest in the world. More recently, in 2018, General Mills purchased Blue Buffalo and joined the wholesome natural pet food category.

Kneading through inflation

Managing a portfolio of 100-plus brands poses a significant challenge to General Mills, especially with a pandemic and inflation thrown into the mix (Chex mix, that is). One of the company's main forward-looking concerns is consumer behavior.

Although customers ate more snacks and meals at home during the pandemic, which was favorable for General Mills, the current high-inflation environment has been much more unpredictable. Deciding when to raise prices in accordance with higher raw materials costs has been tricky for General Mills, and gross margin took a hit last quarter as a result.

During the first-quarter earnings call, CFO Kofi Bruce indicated that further pricing adjustments would occur to offset inflation's effect on profitability. Once prices are updated, he expects to see continued improvement in the company's margins.

In addition to higher materials costs (specifically baking flour), supply chain disruptions also raised operating costs in fiscal Q1. While still a major headwind for General Mills, the company anticipates "moderately lower supply chain disruptions" for the remainder of the year. In fact, during the company's Q1 earnings call, CEO Jeff Harmening noted a slight improvement in the pet segment.

Organic sales are up big

Since General Mills released its impressive first fiscal quarter 2023 results, investors have been buying shares hand over fist. Net sales came in at $4.7 billion, up 4% year over year and driven largely by organic sales.

Organic net sales jumped an outstanding 10%, demonstrating the company's adeptness at keeping its products aligned with consumer behavior. Strong revenue also helped boost General Mills' diluted earnings-per-share (EPS), which increased 32% to $1.35.

After such a remarkable first quarter, the company raised its full-year outlook for organic net sales to 6% to 7% from 4% to 5%. Diluted EPS is now expected to rise 2% to 5%, up from the previous estimate of 0% to 3%. Last but not least, General Mills now anticipates full-year operating profit to grow in a range of 0% to 3%, up from -2% to 1%.

Showing no signs of slowing down, General Mills is one consumer staples stock to buy and hold for the long term.