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]

Financial Data and Key Metrics Changes - For fiscal year 2025, organic net sales decreased by 2%, adjusted operating profit and adjusted diluted EPS were down 7% in constant currency, reflecting a decision to increase investments in response to consumer behavior changes [4][46] - The fourth quarter reported net sales were $4.6 billion, down 3%, with organic net sales also down 3% from the prior year [34][46] - Adjusted operating profit for the fourth quarter was $622 million, down 22% in constant currency, and adjusted diluted EPS totaled $0.74, down 27% in constant currency [35][46] Business Line Data and Key Metrics Changes - North America Retail's fourth quarter organic net sales were down 7%, lagging Nielsen measured U.S. retail sales by approximately three points [37] - North America Pet segment saw a 3% increase in organic net sales driven by higher volume, with reported net sales up double digits for wet food and treats [39] - North America Foodservice organic net sales decreased by 1% in the quarter, while full year organic net sales grew by 2% [42] - International segment posted a 9% increase in fourth quarter organic net sales, driven by strong growth in Brazil and distributor markets [43] Market Data and Key Metrics Changes - North America Retail faced challenges due to value-seeking consumer behavior and weaker sentiment, particularly impacting sales trends [5][6] - The International segment experienced modest organic net sales growth, with declines in China offset by growth in other markets [44] Company Strategy and Development Direction - The company aims to restore volume-driven organic sales growth by investing in product innovation, packaging, and consumer value [3][11] - Plans for fiscal 2026 include maintaining a balance of reinvesting for long-term growth while driving cost savings [12][28] - The company is focusing on enhancing brand remarkability through a structured framework assessing product, packaging, communication, and value [12][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates a volatile operating environment with consumers remaining cautious due to economic uncertainties [10][11] - The company expects to face headwinds from input cost inflation and tariffs, but plans to mitigate these through strategic actions [50][51] - For fiscal 2026, organic net sales are expected to range between down 1% and up 1%, with adjusted operating profit projected to decline by 10% to 15% in constant currency [53] Other Important Information - The company returned $2.5 billion to shareholders through dividends and net share repurchases in fiscal 2025 [10][48] - A global transformation initiative is expected to generate $100 million in cost savings, which will be reinvested in growth [31][33] Q&A Session Summary Question: What are the expectations for organic sales growth in fiscal 2026? - The company expects organic sales growth to improve, driven by stronger competitiveness and investments in product innovation [49][53] Question: How is the company addressing input cost inflation? - The company is working to mitigate impacts through product reformulation and ingredient substitution while planning for significant investments in value and innovation [50][51] Question: What are the plans for the North America Pet business? - The company plans to accelerate growth in the North America Pet segment by expanding the Blue Buffalo portfolio and launching new products [22][24]

Financial Data and Key Metrics Changes - For fiscal year 2025, organic net sales decreased by 2%, adjusted operating profit and adjusted diluted EPS were down 7% in constant currency [4][42] - Fourth quarter reported net sales were $4.6 billion, down 3%, with organic net sales also down 3% from the prior year [30][42] - Adjusted operating profit for the fourth quarter was $622 million, down 22% in constant currency, and adjusted diluted EPS totaled $0.74, down 27% in constant currency [31][42] Business Line Data and Key Metrics Changes - North America Retail's fourth quarter organic net sales were down 7%, with operating profit down 29% in constant currency [33][34] - North America Pet segment saw a 3% increase in organic net sales driven by higher volume, while operating profit was down 3% in constant currency [35][36] - North America Foodservice organic net sales decreased by 1% in the quarter, but operating profit increased by 5% in constant currency [38][39] - International segment organic net sales increased by 9% in the fourth quarter, driven by strong growth in Brazil and distributor markets [40] Market Data and Key Metrics Changes - North America Retail's sales trends lagged Nielsen measured U.S. retail sales by approximately three points, primarily due to trade expense timing headwinds [33] - The International segment's net sales growth was partially offset by declines in China, but 59% of priority businesses grew or held share for the full year [40] Company Strategy and Development Direction - The company aims to restore volume-driven organic sales growth by investing in consumer value, product news, innovation, and brand building [3][51] - Key priorities for fiscal year 2026 include returning North America Retail to volume growth, accelerating North America Pet growth, and driving efficiency to fund these investments [10][20] - The company plans to leverage its Remarkable Experience framework to assess brands and tailor investments accordingly [11][12] Management's Comments on Operating Environment and Future Outlook - Management expects the operating environment to remain volatile, with consumers continuing to seek value amid widespread uncertainty [9][10] - For fiscal year 2026, organic net sales are expected to range between down 1% and up 1%, with adjusted operating profit and diluted EPS expected to decline by 10% to 15% in constant currency [49][50] Other Important Information - The company returned $2.5 billion to shareholders through dividends and net share repurchases in fiscal year 2025 [9][44] - A global transformation initiative is expected to generate $100 million in cost savings, which will be reinvested in growth [29] Q&A Session Summary Question: What are the expectations for organic sales growth in fiscal year 2026? - The company expects organic sales growth to improve in fiscal year 2026, driven by stronger competitiveness in response to investments in Remarkability [45][49] Question: How will the company address input cost inflation and tariffs? - The company anticipates input cost inflation of roughly 3% and a potential additional risk of 1% to 2% from tariffs, but is working to mitigate these impacts through various strategies [46][47] Question: What are the plans for the North America Pet business? - The company plans to accelerate growth in the North America Pet business by investing in core Blue Buffalo lines and expanding into new fast-growing spaces [20][21]

Financial Data and Key Metrics Changes - For fiscal year 2025, organic net sales decreased by 2%, adjusted operating profit and adjusted diluted EPS were down 7% in constant currency, reflecting a decision to increase investments in response to consumer behavior and market volatility [4][46] - The fourth quarter reported net sales were $4.6 billion, down 3%, with organic net sales also down 3% from the prior year [34][46] - Adjusted operating profit for the fourth quarter was $622 million, down 22% in constant currency, and adjusted diluted EPS totaled $0.74, down 27% in constant currency [35][46] Business Line Data and Key Metrics Changes - North America Retail's fourth quarter organic net sales were down 7%, lagging Nielsen measured U.S. retail sales by approximately three points [37] - North America Pet segment saw a 3% increase in organic net sales driven by higher volume, outperforming retail sales by roughly three points [39] - North America Foodservice organic net sales decreased by 1% in the quarter, while the International segment posted a 9% increase in organic net sales driven by strong growth in Brazil and distributor markets [42][44] Market Data and Key Metrics Changes - North America Retail faced challenges with a 3% decline in organic net sales for the full year, driven by lower volume and unfavorable price mix [38] - The International segment's full year results rounded to flat, with growth in distributor markets offset by declines in China [44] - The North America Pet segment showed modest organic net sales growth for the full year, with dollar share growth in dog feeding [40] Company Strategy and Development Direction - The company aims to restore volume-driven organic sales growth in fiscal 2026 by investing in consumer value, product news, and innovation [3][55] - Key priorities for fiscal 2026 include returning North America Retail to volume growth, accelerating North America Pet growth, and driving efficiency to fund these investments [11][22] - The company plans to leverage its Remarkable Experience framework to assess brands and tailor investments accordingly [12][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates a volatile operating environment in fiscal 2026, with consumers remaining cautious and seeking value amid economic uncertainty [10][11] - The company expects organic sales growth to improve in fiscal 2026, driven by stronger competitiveness and volume outpacing price mix [49] - Input cost inflation and tariff impacts are expected to be headwinds, but the company plans to mitigate these through various strategies [50][51] Other Important Information - The company returned $2.5 billion to shareholders in fiscal 2025 through dividends and net share repurchases [10][48] - A global transformation initiative is expected to generate $100 million in cost savings, which will be reinvested in growth [31][33] - The company plans to launch a new line of fresh pet food, "Love Made Fresh," which is projected to capture significant market share in the growing fresh pet food segment [27][28] Q&A Session Summary Question: What are the expectations for organic sales growth in fiscal 2026? - The company expects organic net sales to range between down 1% and up 1%, with adjusted operating profit and diluted earnings per share expected to decline by 10% to 15% in constant currency [53] Question: How will the company address input cost inflation and tariffs? - The company anticipates input cost inflation of roughly 3% and additional risks from tariffs, but is working to mitigate these impacts through product reformulation and strategic revenue management [50][51] Question: What are the key priorities for fiscal 2026? - The company has set three clear priorities: returning North America Retail to volume growth, accelerating North America Pet growth, and driving efficiency to support these investments [11][22]

Fiscal 2025 Q4 Earnings June 25, 2025 General Mills Fiscal 2025 Fourth Quarter A Reminder on Forward-looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements including the statements under the caption "Fiscal 2026 Outlook," and statements made by Mr. Harmening, are subject to certain risks and uncertainties that could ...

Financial Performance - Net sales for fiscal 2025 were $19.5 billion, a decrease of 2% from the prior year, with organic net sales also down 2%[5] - Fourth-quarter net sales were $4.6 billion, down 3%, with organic net sales also down 3%, impacted by a 2-point headwind from unfavorable trade expense timing[9] - Operating profit for fiscal 2025 was $3.3 billion, down 4%, while adjusted operating profit was $3.4 billion, down 7% in constant currency[5] - Diluted earnings per share (EPS) for fiscal 2025 was $4.10, down 5%, and adjusted diluted EPS was $4.21, down 7% in constant currency[5] - Net earnings attributable to General Mills for fiscal 2025 were $2.3 billion, an 8% decrease from $2.5 billion in fiscal 2024[33] - Total net sales for fiscal year 2025 decreased by 2% to $19,486.6 million compared to $19,857.2 million in fiscal year 2024[38] - North America Retail segment sales declined by 5% to $11,907.0 million in fiscal year 2025, while International segment sales increased by 2% to $2,797.8 million[38] - Operating profit for the North America Retail segment fell by 11% to $2,729.9 million in fiscal year 2025, while the North America Foodservice segment saw a 13% increase to $355.4 million[38] - The company reported a net earnings of $2,318.9 million for fiscal year 2025, down from $2,518.6 million in fiscal year 2024[44] - The company reported a total operating profit decrease of 8% for the fiscal year ended May 25, 2025, compared to the previous fiscal year[80] Segment Performance - The North America Retail segment reported a 10% decline in fourth-quarter net sales to $2.6 billion, with organic net sales down 7%[12] - The North America Pet segment saw a 12% increase in fourth-quarter net sales to $675 million, driven by a 9-point benefit from the North American Whitebridge Pet Brands acquisition[14] - The International segment's fourth-quarter net sales increased by 11% to $739 million, with organic net sales up 9%[18] - North America Retail segment reported a 29% decline in operating profit on a constant-currency basis for the quarter ended May 25, 2025[80] - International segment achieved a 42% increase in operating profit on a constant-currency basis for the same quarter, despite a 50% negative impact from foreign currency[80] Cash Flow and Investments - Operating cash flow for fiscal 2025 was $2.9 billion, down from $3.3 billion in the previous year, primarily due to lower net earnings[24] - Capital investments decreased to $625 million in fiscal 2025 from $774 million in fiscal 2024[24] - Net cash provided by operating activities for fiscal 2025 was $2,918.2 million, leading to a free cash flow of $2,292.9 million[85] - Free cash flow conversion rate for fiscal 2025 was 97%, indicating strong efficiency in converting earnings to cash[85] Future Projections - The company aims to restore volume-driven organic sales growth in fiscal 2026, focusing on consumer value, product innovation, and brand building[4] - For fiscal 2026, organic net sales are projected to range from a decline of 1% to an increase of 1%[28] - Adjusted operating profit is expected to decrease by 10% to 15% from the $3.4 billion reported in fiscal 2025[28] - Adjusted diluted EPS is anticipated to decline by 10% to 15% from the $4.21 earned in fiscal 2025[28] - The net impact of divestitures and acquisitions is expected to reduce full-year net sales growth by approximately 4%[28] - For fiscal 2026, the company expects a net sales growth reduction of approximately 4% due to foreign currency exchange rates, acquisitions, and a 53rd week[55] - The company anticipates restructuring and transformation charges for fiscal 2026 to total approximately $90 million to $95 million[55] Dividends and Shareholder Returns - The board declared a quarterly dividend of $0.61 per share, a 2% increase from the previous rate of $0.60[26] Restructuring and Charges - Restructuring, transformation, and impairment charges totaled $83.9 million in Q4 fiscal 2025, compared to $111.4 million in Q4 fiscal 2024, with total charges for fiscal 2025 amounting to $259.0 million, up from $61.0 million in fiscal 2024[3] - The company recognized $69 million in severance and other benefit costs related to restructuring actions in fiscal 2025[3] - Integration costs related to acquisitions in fiscal 2025 amounted to $14 million, primarily from the acquisition of Whitebridge Pet Brands[4] - The company incurred restructuring and transformation charges of $87.5 million for the fiscal year ended May 25, 2025[83] Taxation - The effective tax rate for fiscal 2025 was 20.2%, compared to 19.6% in the previous year[23] - The effective tax rate for Q4 fiscal 2025 was 18.3%, down from 20.1% in Q4 fiscal 2024, primarily due to nonrecurring discrete tax benefits[51] - Adjusted effective tax rate for fiscal 2025 was 20.6%, compared to 20.1% in fiscal 2024, reflecting changes in nonrecurring tax benefits[51] - Adjusted effective income tax rate for the quarter ended May 25, 2025, was 19.2%, compared to 20.0% for the same quarter in the previous year[81] Share Count and Earnings Per Share - Average number of common shares for diluted EPS calculation decreased to 550.4 million in Q4 fiscal 2025 from 570.4 million in Q4 fiscal 2024[51] - Diluted earnings per share (EPS) for the quarter was $0.74, down 27% from $1.01 in the prior year[71] - Adjusted net earnings attributable to General Mills for the fiscal year 2025 were $2,345.4 million, or 12.0% of net sales, down from 13.2% in 2024[76] - Adjusted operating profit for the quarter ended May 25, 2025, was $622.5 million, a decrease of 22% compared to $799.8 million for the same quarter in 2024[70]

Core Viewpoint - General Mills, Inc. (NYSE: GIS) is expected to report earnings soon, with the stock facing significant challenges over the past year [1] Group 1: Company Performance - The stock of General Mills has performed poorly over the last year, indicating a rough period for the company [1] Group 2: Analyst Insights - Josh Arnold, an experienced analyst, utilizes both technical and fundamental analysis to identify potential growth stocks, focusing on efficient capital use rather than rigid buy-and-hold strategies [1] - The investing group Timely Trader, led by Josh Arnold, emphasizes limiting risk and maximizing potential rewards through features like real-time alerts and sector analysis [1]

Core Viewpoint - Häagen-Dazs, a high-end ice cream brand in China, is facing significant growth challenges and may consider selling its stores in the country due to declining sales and foot traffic [4][5][7]. Group 1: Market Performance - General Mills, the parent company of Häagen-Dazs, reported a net sales of $138 million for its premium ice cream business in the latest quarter, a decrease of approximately 3.2% compared to the same period last year [5]. - The sales revenue for Häagen-Dazs in China has declined from $800 million in the 2019 fiscal year to $730 million in the 2024 fiscal year [22]. - As of June 22, 2024, Häagen-Dazs had 385 stores in China, significantly fewer than local competitors like "Mr. Wild" with 566 stores and DQ with 1,695 stores [19]. Group 2: Competitive Landscape - The Chinese ice cream market has become increasingly crowded with the rise of new brands and local competitors, leading to a decline in Häagen-Dazs' market share [21][22]. - The emergence of new tea drinks and local coffee shops has provided consumers with more options for casual dining, further impacting Häagen-Dazs' customer base [21]. Group 3: Consumer Behavior - A recent survey indicated that only 6.94% of consumers are willing to pay over 20 yuan for a single ice cream, down from 9.01% in 2023, reflecting a shift towards more budget-friendly options [25]. - Consumers are increasingly seeking value for money, with a preference for products priced under 10 yuan [25]. Group 4: Strategic Adjustments - Häagen-Dazs plans to expand its retail channels and promote handheld products to increase visibility and competitiveness in the market [27]. - The brand is also implementing promotional pricing strategies, such as offering ten flavors for 189.9 yuan at pop-up stores [28]. - There are suggestions for Häagen-Dazs to localize its operations by potentially transferring management to Chinese firms to better adapt to local market conditions [31].

Core Viewpoint - Analysts expect General Mills to report quarterly earnings of $0.71 per share, reflecting a year-over-year decline of 29.7%, with revenues projected at $4.6 billion, down 2.4% from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding stocks, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Key Metrics Forecast - Analysts estimate 'Net Sales- North America Foodservice' at $593.35 million, indicating a year-over-year change of +0.7% [4] - 'Net Sales- International' is expected to reach $671.56 million, reflecting a +0.6% change from the year-ago quarter [4] - 'Net Sales- North America Pet' is projected at $646.14 million, showing a year-over-year increase of +7.3% [4] - 'Net Sales- North America Retail' is anticipated to be $2.71 billion, indicating a -5% change from the prior-year quarter [5] Operating Profit Estimates - 'Operating Profit- North America Retail' is expected to be $492.98 million, down from $670.10 million year-over-year [5] - 'Operating Profit- International' is projected at $32.83 million, compared to $22.40 million from the previous year [6] - 'Operating Profit- North America Pet' is estimated at $124.25 million, down from $143.90 million year-over-year [6] - 'Operating Profit- North America Foodservice' is expected to be $78.51 million, slightly down from $79.20 million year-ago [6] Stock Performance - Over the past month, General Mills shares have returned -0.8%, while the Zacks S&P 500 composite has changed by +0.6% [7] - General Mills currently holds a Zacks Rank 4 (Sell), indicating potential underperformance compared to the overall market in the near future [7]

Core Viewpoint - General Mills is considering selling its Haagen-Dazs store business in China, with potential transaction value reaching hundreds of millions of dollars, driven by declining store traffic and a significant reduction in the number of stores over the past four years [1][2]. Group 1: Business Restructuring - General Mills has engaged consultants to evaluate the sale of its Haagen-Dazs stores in China, with formal sale processes expected to start in 2025 [2]. - The company has been undergoing a restructuring process, incurring approximately $70 million in restructuring costs for the current quarter, with total restructuring expenses projected at $130 million by the end of fiscal year 2028 [2]. - Haagen-Dazs has faced criticism for declining store traffic in China for three consecutive quarters, with CEO Jeff Harmening acknowledging the challenges in the Chinese market [2][3]. Group 2: Market Performance - In the second quarter of fiscal year 2025, General Mills' international organic net sales decreased by 3%, primarily due to declines in the Chinese and Brazilian markets [3]. - The ice cream market in China is contracting, with major players like Yili and Mengniu reporting significant revenue declines of 18.4% and 14.1%, respectively, in 2024 [3]. - Haagen-Dazs has seen a rapid reduction in its store network, with only 263 stores remaining in China as of June 12, 2025, down from over 400 in September 2021, marking a nearly 20% decrease [3]. Group 3: Channel Transformation - Haagen-Dazs is shifting its business model to focus on retail channels, with plans to enhance penetration and improve product display in convenience stores and supermarkets [4]. - The brand is also expanding its presence in e-commerce, moving towards interest-based platforms like Douyin and Xiaohongshu [4]. - The B2B segment of Haagen-Dazs is growing rapidly, encompassing high-end dining services and partnerships with premium hotels and restaurants [5]. Group 4: Potential for Revitalization - The potential sale of the store business could provide an opportunity for Haagen-Dazs to rejuvenate its operations in China, similar to the successful localization seen with McDonald's China [6]. - The ice cream market is shifting towards a "quality-price ratio" era, with more affordable products gaining traction, which may pressure traditional high-end store formats [6]. - Despite challenges, Haagen-Dazs maintains a strong brand presence, holding over 15% market share in the Chinese ice cream chain sector as of 2023, ranking second only to DQ [6].