Packaged foods maker General Mills (NYSE:GIS) announced yesterday that it squeezed a 19% increase in second-quarter net income out of a modest 4% rise in sales. Earnings jumped to $0.97 -- handily outpacing analysts' expectations by double digits -- on revenues of $3.17 billion. The strong performance initially sent the stock to levels it hadn't seen in well more than a year. After investors had more time to digest the news, though, disappointment that full-year guidance was left unchanged (rather than increased) led to a hasty afternoon retreat.

Much of the credit for the top-line growth goes to price increases that were passed along to consumers, as worldwide unit volume edged only 1% higher. The stronger pricing environment helped offset persistently high commodity costs. Sales in the domestic retail segment (which represents roughly three-fourths of overall revenues) came in 3% higher, driven by demand for Pillsbury and Betty Crocker products. Operating profits in the segment rose 5% to $567 million.

The bakeries and foodservice segment, though, reported a 3% drop in sales as higher prices didn't overcome a 7% drop in unit volume. Operating profits of $46 million reflected a modest improvement from the first quarter but were 12% lower than the $52 million earned a year ago.

The 19% jump in quarterly net income marks a stark reversal from three months ago, when net income fell by 19%. General Mills is beginning to feel the favorable impact of "pricing actions and productivity initiatives" put in place earlier. Restructuring expenses also took a smaller bite out of the bottom line as half of this year's planned expenses were booked in the first quarter.

Though General Mills has introduced a variety of health-conscious products such as all-grain cereals and even launched its own weight-loss program, the company never fully committed to the low-carb bandwagon. The anti-grain diet (yes, I know, whole grains are OK) forced the company -- as well as many others such as Krispy Kreme (NYSE:KKD), Kellogg (NYSE:K), and Motley Fool Income Investor pick Sara Lee (NYSE:SLE) -- to swim against a swift current in quarters past, keeping sales in check. As I predicted this summer, though, the low-carb tide is waning, and companies that spent millions to roll out low-carb alternatives are seeing sales of these products suffer.

General Mills' slow response to the low-carb movement may end up being for the best. Shifting dietary trends should help boost sales going forward (particularly in the bakery division), as will the introduction of 33 items on the retail side during the second half of the fiscal year. Furthermore, the company has outlined plans to trim its debt by $2 billion and taken steps to repurchase a 16.5-million block of shares from Diageo (NYSE:DEO), which has a 21% (79 million-share) stake left over from the acquisition of Pillsbury in 2001.

Perhaps the most telling statistic is General Mills' dividend payment, which has been shelled out for 106 consecutive years without fail (or even reduction). This shows a remarkably consistent ability to generate cash for shareholders regardless of business cycles or economic conditions. General Mills may not offer much sugary excitement, but its consistency just might help keep your portfolio healthy.

Here's a few more choices from the Fool's pantry:

Fool contributor Nathan Slaughter loves a good bowl of Cap'n Crunch cereal but owns none of the companies mentioned.