Recently, the food maker reported a higher fiscal fourth-quarter profit, boosted by higher revenue in its household products and body care businesses.

But JPMorgan analyst Pablo Zuanic wondered about prospects in the company's North American bakery segment and opportunities for expansion.

"The bread market in the U.S. is ripe for consolidation, but we have seen little merger and acquisition activity from Sara Lee," Zuanic wrote.

Zuanic also is looking for an update on margins and opportunities to expand them. He said margins in Sara Lee's North American meat and international bakery segments fell in fiscal 2007.

Looking ahead, Zuanic said it's less likely the company will get a buyout offer, since it's making progress on its turnaround and has committed to buying back $1 billion in stock.

"We are skeptical on the entry of private equity as Sara Lee is well through the second half of its cost reduction program, showing the benefits of the recent restructuring, and is already transferring a large amount of cash to shareholders via share buybacks," Zuanic wrote in a client note.

Sara Lee's brands include Ball Park hot dogs, Hillshire Farm deli meats and its namesake desserts and breads.