Core Viewpoint - Häagen-Dazs is facing unprecedented challenges in the Chinese market, including store closures and declining sales, leading to speculation about a potential sale by its parent company, General Mills [3][4][5]. Group 1: Current Situation of Häagen-Dazs - Häagen-Dazs has closed several stores in major cities like Beijing, Shanghai, and Dalian, reducing its presence from over 400 stores to around 250 by June 2025, nearly a 50% decrease [7]. - The chairman of General Mills acknowledged a double-digit percentage decline in customer traffic for Häagen-Dazs stores in China, indicating a tougher consumption environment [7]. - In the third quarter of fiscal year 2025, General Mills reported net sales of $4.842 billion, a 5% year-over-year decline, with a 3% drop in the Chinese market [7][9]. Group 2: Market Dynamics - The ice cream market in China is undergoing significant changes, with local brands gaining popularity due to better alignment with consumer preferences and competitive pricing [10][12]. - DQ has rapidly expanded its presence, increasing its store count by nearly 800 since 2020, reaching 1,721 stores by April 2025 [12]. - New domestic brands like Gelato and Bobo Ice Cream are capturing market share, with Gelato projected to reach a market size of over 12 billion yuan by 2024, growing at a rate of 10% [13][15]. Group 3: Challenges and Competition - Häagen-Dazs faces intense competition from various sectors, including established dairy companies and new entrants from the restaurant industry, all vying for a share of the lucrative ice cream market [17][20]. - The brand's high pricing strategy, once a symbol of luxury, is now seen as a disadvantage as consumers shift towards more affordable and locally appealing options [22][29]. - Häagen-Dazs has attempted to innovate and adapt by introducing new flavors and products, but struggles to keep pace with the rapid innovation of domestic competitors [25][27]. Group 4: Consumer Perception and Brand Positioning - The brand's previous image as a luxury product has diminished as consumer preferences evolve towards value and local products, leading to a loss of its "high-end" appeal [29]. - The shift in consumer behavior reflects a broader trend where younger generations prioritize personal satisfaction over brand prestige, challenging Häagen-Dazs's traditional marketing strategies [29].

Core Viewpoint - Häagen-Dazs, once a leader in the ice cream market, is facing unprecedented challenges in China, including store closures and declining sales, prompting speculation about a potential sale of its operations in the region [3][6][5]. Group 1: Company Performance - Häagen-Dazs has closed several stores in major cities like Beijing and Shanghai, reducing its presence from over 400 stores to approximately 250 by June 2025 [10]. - General Mills reported a 5% decline in net sales to $4.84 billion for the third quarter of fiscal 2025, with a 3% drop in the Chinese market [11][12]. - The brand's net profit decreased by 7% to $626 million in the same period, leading to a drop in stock price by over 2% [11]. Group 2: Market Competition - The Chinese ice cream market is undergoing significant changes, with local brands and competitors like Dairy Queen (DQ) rapidly expanding their presence, increasing DQ's store count to 1,721 by April 2025 [18]. - New domestic ice cream brands are gaining popularity due to their better alignment with local tastes and competitive pricing, posing a threat to Häagen-Dazs [18][19]. - The rise of premium ice cream brands, such as Gelato, which has seen a market growth rate of 10%, further intensifies competition [19]. Group 3: Consumer Perception and Brand Strategy - Häagen-Dazs has struggled with its high pricing strategy, which has diminished its appeal among consumers who now prefer more affordable options [33][40]. - The brand has attempted to innovate by introducing new flavors and products, but its efforts have not matched the rapid innovation seen in local brands [36][38]. - The shift in consumer behavior towards value and local products has eroded Häagen-Dazs's previous status as a luxury brand, leading to a decline in its market position [40].

Core Insights - General Mills, Inc. (GIS) reported fourth-quarter fiscal 2025 results with adjusted earnings of 74 cents per share, surpassing the Zacks Consensus Estimate of 71 cents, but net sales of $4,556.2 million fell short of the expected $4,604 million, reflecting a 3% year-over-year decline in net sales and a 27% decline in earnings on a constant-currency basis [1][3][9] Financial Performance - Adjusted gross margin decreased by 220 basis points to 32.7% of net sales, primarily due to input cost inflation and unfavorable net price realization [4] - Adjusted operating profit dropped 22% in constant currency, with the operating profit margin down 330 basis points to 13.7%, impacted by increased SG&A expenses and unfavorable trade expense timing [5] - The company ended the quarter with cash and cash equivalents of $363.9 million and long-term debt of $12,673.2 million [11] Segment Performance - North America Retail segment revenues fell 10% year over year to $2,559.8 million, with a 29% decline in operating profit to $473.8 million [6] - International segment revenues increased by 11% to $738.9 million, with a 50% rise in operating profit to $33.7 million [7] - North America Pet segment revenues rose 12% to $675.2 million, while operating profit declined 3% to $140.1 million [8] - North America Foodservice revenues decreased by 2% to $579.4 million, but operating profit grew by 5% to $83.1 million [10] Future Outlook - For fiscal 2026, General Mills aims to revive volume-driven organic sales growth, with projected organic net sales ranging from a 1% decline to a 1% increase, and adjusted operating profit and EPS expected to decline by 10% to 15% in constant currency [14][15] - The company plans to focus on innovation and marketing, including the launch of Blue Buffalo in the fresh pet food segment [2][14]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission file number: 001-01185 ________________ GENERAL MILLS, INC. (Exact name of registrant as specified in its charter) Delaware 41-0274440 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Number One General Mills Boulevard Minneapolis, Minnesota 55426 (Address of principal executive offices) (Zip Code) (763) 764-7600 (Registrant's telephone number, including area code) ...

Consumer Behavior & Market Trends - Consumer uncertainty due to economic factors, tariffs, and global conflicts leads to reduced spending [1] - Consumers are increasingly value-conscious, seeking affordable options [3] - Food at home consumption remains robust, accounting for approximately 87% of total food consumption, indicating a shift away from eating out [2] - Consumers seek bold flavors and nostalgic products when stressed [4][5] Company Performance & Strategy - The company has invested significantly in brand value over the last 6 months in response to consumer value consciousness [3] - The company observed increased pound volumes and shares in over 60% of its categories in the US retail business during the last quarter [4] - The company held share in its pet food business and grew share in food service and international markets [4]

Company Performance - General Mills CEO discusses earnings [1] Market Trends & Challenges - Addresses consumer demand challenges [1] - Discusses economic uncertainty [1]

Group 1 - General Mills reported mixed Q4 results, with earnings of $0.74 per share beating expectations by 3 cents but down 25% from $1.01 per share in the same quarter last year [3][4] - Revenues for General Mills were $4.56 billion, missing estimates by 1.04%, and the stock is trading down 3% following the news [4] - Year-to-date, General Mills' stock is down 16% [4] Group 2 - Micron is set to report fiscal Q3 results, with expectations of a 156% year-over-year increase in earnings and a 30% rise in revenues [7] - Pre-market trading shows Micron down 1% at the moment but up more than 50% year to date [7]

Financial Data and Key Metrics Changes - The company is focused on returning to volume growth, particularly in North America Retail (NAR), with significant investments in value and advertising leading to positive results [6][9] - The pricing mix in North America Retail was down 3% and down 1% at the company level, indicating challenges in maintaining pricing power [50][56] Business Line Data and Key Metrics Changes - The company has seen share growth in its international businesses, foodservice, health share, and pet segments, indicating a positive trend across various business lines [8] - The pet food business has experienced volatility due to a high proportion of e-commerce sales, but overall inventory levels are in a good place [33][34] Market Data and Key Metrics Changes - The fresh pet food segment is currently valued at $3 billion and is projected to grow to $10 billion in the next ten years, highlighting significant market potential [67] - The overall pet food category is growing at a slower rate than previously expected, with current growth rates around 12% to 13% [65][66] Company Strategy and Development Direction - The company is committed to significant investments in advertising and new product launches to drive growth, particularly in the fresh pet food category [20][67] - The strategy includes targeted pricing actions in specific categories to maintain competitiveness without engaging in a race to the bottom [50][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to rebuild margins over time, despite current investments impacting short-term profitability [25][28] - The company is focused on improving its value proposition and marketing effectiveness to drive consumer engagement and sales growth [107][108] Other Important Information - The company is experiencing a shift in consumer preferences towards protein-rich products, with new product launches expected to capitalize on this trend [85][87] - There is an emphasis on seasonal innovation, with plans to increase seasonal product offerings by 50% to enhance consumer engagement [90] Q&A Session Summary Question: Insights on margin potential for Blue Buffalo - Management highlighted strong consumer resonance with the Blue Buffalo brand and expressed confidence in building a profitable business through national launch efforts [15][17] Question: Balancing reinvestment and margin profile - Management acknowledged the need for careful management of reinvestment to avoid long-term margin erosion, with some investments expected to be temporary [25][28] Question: Clarification on pet inventory levels - Management confirmed that pet inventory levels are stable, but acknowledged the inherent volatility in e-commerce sales affecting retail inventory [33][34] Question: Organic revenue phasing for the year - Management indicated that trade expense phasing will impact organic sales numbers, with expectations for gradual improvement as investments take effect [45][46] Question: Competitive response to pricing actions - Management emphasized that pricing actions are targeted and not a broad-based reduction, aiming to maintain brand value while improving marketing effectiveness [50][52] Question: Fresh pet food market growth expectations - Management remains optimistic about the fresh pet food segment's growth potential, citing ongoing trends in pet humanization and market expansion [65][67] Question: Salty snacks performance and strategy - Management acknowledged challenges in the salty snacks category due to discretionary spending but expressed confidence in upcoming innovations to drive improvement [108]

Financial Data and Key Metrics Changes - The company is focused on returning to volume growth, particularly in North America Retail (NAR), with significant investments in value and advertising leading to positive results [5][6] - The company reported a price mix decline of 3% in North America Retail and 1% at the enterprise level for the quarter [48][55] Business Line Data and Key Metrics Changes - The company has seen share growth in its international businesses, foodservice, health share, and pet segments, indicating a positive trend across various business lines [6][7] - The pet food business has shown stability and slight growth, with successful advertising campaigns contributing to improved performance [35][36] Market Data and Key Metrics Changes - The fresh pet food segment is projected to grow significantly, with expectations of reaching $10 billion in ten years, indicating a strong market opportunity [68] - The overall pet food category is currently growing at about 12% to 13%, down from previous higher growth rates, but still presents a substantial market for the company [66][68] Company Strategy and Development Direction - The company is committed to expanding value investments in targeted businesses and enhancing consumer engagement through new product launches and marketing initiatives [5][6] - The strategy includes a focus on innovation in protein offerings and leveraging seasonal marketing opportunities to drive sales [90][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to rebuild margins over time despite current reinvestment strategies, emphasizing the importance of achieving scale in new investments [25][26] - The company is prepared to navigate inflation and tariff impacts while maintaining flexibility in its strategic revenue management [64][66] Other Important Information - The company is experiencing variability in pet inventory levels due to the high proportion of e-commerce sales, which are more volatile compared to traditional retail channels [31][32] - Significant marketing investments are planned for the national launch of fresh pet food, with a focus on generating trial and awareness among consumers [101] Q&A Session Summary Question: Insights on margin potential for Blue Buffalo - Management highlighted strong repeat rates and consumer resonance with the Blue Buffalo brand, indicating confidence in building a profitable business through national launch efforts [15][16] Question: Ensuring responsible margin management amid reinvestment - Management noted that some reinvestment factors are temporary, and they expect to mitigate tariff impacts while managing costs effectively post-Yoplait divestiture [25][26] Question: Clarification on pet inventory expectations - Management indicated that while there is some lumpiness in pet inventory, overall levels are in a good place, and they are cautious about predicting future movements [31][32] Question: Organic revenue phasing and category growth expectations - Management acknowledged trade expense phasing impacts on organic sales and emphasized a focus on competitiveness rather than relying on category rebounds [43][44] Question: Competitive response to pricing reinvestments - Management assured that pricing actions are targeted and not a race to the bottom, with a focus on maintaining brand value while investing in marketing and innovation [48][49] Question: Future pricing power and fresh business growth - Management emphasized the need for a balanced approach to growth through volume and pricing, with confidence in the long-term potential of the fresh pet food segment [60][66] Question: Evaluation of organic innovation versus acquisitions - Management stated that they evaluate growth opportunities based on their ability to win organically and have confidence in their capabilities to succeed in the fresh pet food category [105][106] Question: Performance outlook for salty snacks - Management acknowledged challenges in the salty snacks category due to discretionary spending but expressed optimism about upcoming innovations and marketing strategies [110][111]

Core Viewpoint - General Mills reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, but down from $1.01 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +4.23%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $4.56 billion, missing the Zacks Consensus Estimate by 1.04%, and down from $4.71 billion year-over-year [3] - The company has topped consensus revenue estimates twice in the last four quarters [3] Stock Performance - General Mills shares have declined approximately 16.3% year-to-date, contrasting with the S&P 500's gain of 3.6% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $4.62 billion, and for the current fiscal year, it is $3.87 on revenues of $18.95 billion [8] - The estimate revisions trend for General Mills was unfavorable prior to the earnings release, which may impact future stock performance [7] Industry Context - The Food - Miscellaneous industry, to which General Mills belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Comparatively, Lamb Weston, another company in the same industry, is expected to report a year-over-year earnings decline of -16.7% [10]