General Mills (NYSE:GIS – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.03, FiscalAI reports. The firm had revenue of $4.39 billion for the quarter, compared to the consensus estimate of $4.35 billion. General Mills had a positive return on equity of 21.37% and a negative net margin of 0.48%.
Here are the key takeaways from General Mills’ conference call:
- Positive Sentiment: General Mills said first-quarter results were ahead of expectations, with organic net sales flat year over year and improved trends in North America Retail, Foodservice, and International. The company reaffirmed its fiscal 2027 guidance.
- Positive Sentiment: Management highlighted early progress from its “Remarkability Playbook,” including stronger innovation, renovation, marketing, and value initiatives. Cereal, Pillsbury, pet cat food, and International brands showed improving retail sales or market-share trends, although some businesses remain challenged.
- Positive Sentiment: The company remains on track to deliver $750 million in fiscal 2027 cost savings as part of a broader $3 billion program through fiscal 2030. Savings are intended to offset inflation, fund brand investment, and improve earnings and cash flow over time.
- Negative Sentiment: Adjusted operating profit fell 11% and adjusted diluted EPS declined 13% in the quarter, while adjusted operating margin contracted 130 basis points to 14.4%. Higher input costs, lower volume, and increased media investment pressured profitability.
- Negative Sentiment: General Mills expects fiscal 2027 input-cost inflation at the high end of its 4%–5% range, citing freight, grains, packaging, and Canadian tariffs. The company is prioritizing debt reduction, expects no near-term share repurchases or major acquisitions, and continues to face weakness in dog feeding, particularly Wilderness.
General Mills Price Performance
Shares of NYSE GIS opened at $35.45 on Wednesday. The stock’s 50-day simple moving average is $37.85 and its two-hundred day simple moving average is $36.46. The firm has a market capitalization of $18.95 billion, a P/E ratio of -196.94, a P/E/G ratio of 1.93 and a beta of -0.01. General Mills has a twelve month low of $31.75 and a twelve month high of $51.33. The company has a quick ratio of 0.40, a current ratio of 0.68 and a debt-to-equity ratio of 1.68.
General Mills Announces Dividend
Key General Mills News
Here are the key news stories impacting General Mills this week:
- Positive Sentiment: Adjusted earnings were approximately $0.74–$0.75 per share, above the $0.72 consensus estimate, while quarterly revenue of $4.39 billion also exceeded the $4.35 billion forecast. General Mills earnings results
- Positive Sentiment: Management reaffirmed its fiscal 2027 outlook, calling for organic net sales ranging from a 1.5% decline to 0.5% growth and adjusted diluted EPS of $3.00 to $3.20. The company cited product innovation, renovation and cost discipline as potential supports. General Mills fiscal 2027 first-quarter results
- Positive Sentiment: Royal Bank of Canada reiterated its “Outperform” rating and maintained a $45 price target, implying substantial upside from the stock’s recent level. RBC General Mills rating
- Neutral Sentiment: International sales rose 4% and North America Foodservice sales increased 1%, while North America Pet sales were essentially flat. These gains provided some diversification but did not offset weakness in the core retail business.
- Negative Sentiment: Fiscal first-quarter net sales fell 3% to about $4.4 billion, with North America Retail sales down 7% to $2.45 billion. The results suggest consumers remain cautious and that the company’s turnaround is progressing slowly. General Mills Q1 sales and earnings decline
- Negative Sentiment: Reported net earnings plunged 67% to $397 million and operating profit fell 63%. Although the comparison was distorted by a prior-year gain from divestitures, the magnitude of the decline is likely weighing on sentiment.
- Negative Sentiment: UBS previously warned of weak consumption and rising input costs, while Jim Cramer criticized the unusually high dividend yield as a possible warning sign. Recent insider activity also showed selling without reported purchases.
Wall Street Analysts Forecast Growth
A number of brokerages have recently weighed in on GIS. JPMorgan Chase & Co. raised their price objective on shares of General Mills from $31.00 to $35.00 and gave the stock an “underweight” rating in a research note on Thursday, July 2nd. Royal Bank Of Canada reissued an “outperform” rating and issued a $45.00 price target on shares of General Mills in a research note on Monday. Evercore set a $38.00 price objective on General Mills in a research note on Monday, September 14th. Jefferies Financial Group set a $35.00 price target on General Mills in a report on Thursday, September 10th. Finally, The Goldman Sachs Group reiterated a “neutral” rating and set a $36.00 price target on shares of General Mills in a research report on Tuesday, June 2nd. Four investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $36.41.
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About General Mills
General Mills, Inc is a global food company that manufactures and markets branded consumer food products. Its portfolio includes cereals, snacks, refrigerated and shelf-stable meals, baking products, yogurt, and pet food.
The company’s brands include Cheerios, Betty Crocker, Pillsbury, Nature Valley, Old El Paso, Yoplait, Blue Buffalo, and Häagen-Dazs in markets where it owns or licenses the brand. General Mills sells its products through grocery stores, mass merchants, convenience stores, e-commerce channels, restaurants, and other foodservice providers.
General Mills traces its history to the Minneapolis Milling Company, founded in 1856, and adopted the General Mills name in 1928.
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