As with all food companies these days, rising costs continue to weigh heavily on General Mills' (NYSE: GIS) pockets. The company reported a 51% jump in quarterly profits, helped by price adjustments and a favorable product mix. But it also anticipates weaker-than-expected full-year earnings of $2.60 to $2.62 a share, thanks to higher input and energy costs.

Revenue for the quarter grew by 3%, to $3.63 billion. Though volumes declined by 4% because of lower promotional activities, certain segments helped the top line grow.

Both the International and Bakeries & Foodservices segments saw high sales growth. However, the U.S. retail segment -- the company's largest by revenue -- suffered a 2% decline, hurt by weak volumes. Lower same-store sales at Wal-Mart (NYSE: WMT), which is one of General Mills' major U.S. segment customers, may be a significant factor.

General Mills has some serious outflows lined up for next year as well, including a $1.2 billion purchase of Yoplait International, the yogurt maker. This move could have a significant effect on the company's numbers down the road, not to mention its cash-management decisions. General Mills has already announced that it's reducing share repurchases as a result.

General Mills expects input costs to go up by 10 to 11% next year, and it’s not alone. ConAgra's (NYSE: CAG) last quarterly earnings were hit by high costs, and the company expects 2012 to remain a challenge on that front. Kraft Foods (NYSE: KFT) recently raised product prices to counter surging costs and trimmed its yearly forecast.

The Foolish bottom line
With first-quarter earnings expected to be lower, and both sales and operating profit expected to grow at low-single-digit rates for fiscal 2012, things are not looking so bright for General Mills. Moreover, raising product prices can offset costs only to a limited extent. I'd prefer to remain cautious and wait for some optimistic headway before committing myself to this stock.