General Mills Stock Forecast Today12-Month Stock Price Forecast:$67.5314.01% Upside HoldBased on 18 Analyst RatingsCurrent Price$59.23High Forecast$82.00Average Forecast$67.53Low Forecast$58.00General Mills Stock Forecast DetailsGeneral Mills NYSE: GIS isn’t an exciting stock, and its business faces headwinds, but it is fundamentally sound, investing in a turnaround and trading at historically low valuations. The stock is valued at only 14x earnings in early 2025, well below the 18x 10-year average while of ...

Financial Data and Key Metrics Changes - The company is focusing on accelerating organic growth with a target of at least 5% HMM savings and an additional $100 million in cost savings planned for fiscal 2026 [5][16] - Consumer confidence indices indicate that consumer confidence is currently below levels seen three months ago and is comparable to 2008 [8][9] - The company expects to improve competitiveness starting in the fourth quarter with actions taken [17] Business Line Data and Key Metrics Changes - The company is stepping up investment in pricing and marketing, particularly in the fruit snacks area, where consumers are seeking value [13][14] - New product innovations are being emphasized, with a focus on fewer but bigger innovations planned for the first half of next year [32][33] - The fruit snacks category is currently down, and the company is working on improving its market share through better pricing and marketing strategies [60][61] Market Data and Key Metrics Changes - The snacks business is experiencing a negative gap in performance compared to previous years, attributed to decreased consumer confidence and increased value-seeking behavior [49][55] - The company notes that food-at-home consumption has increased to 87% of occasions, which is higher than pre-pandemic levels [52] - The pet food segment is facing a 5-point drag from retail inventory, particularly in dry pet food [98][99] Company Strategy and Development Direction - The company aims to reinvest savings from HMM and the 53rd week to drive growth and improve competitiveness [16][82] - There is a commitment to enhancing marketing efforts and new product innovation to align with consumer preferences [85][86] - The strategy includes a holistic approach to value, focusing on marketing, innovation, and pricing [84] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the consumer environment has not improved as expected, with consumers increasingly seeking value [7][8] - The company is optimistic about returning to growth, particularly in the cereal and soup categories, due to increased marketing and improved product offerings [93][94] - Management emphasizes the importance of understanding consumer needs and adapting to changing market conditions [45][72] Other Important Information - The company is experiencing challenges in the cereal category, with a mid-single-digit decline in U.S. retail sales [89] - There is a focus on improving the marketing and innovation of core products to regain market share [80][81] Q&A Session Summary Question: What is the incremental investment needed for fiscal 2026? - Management indicated that the consumer environment has not improved as expected, and they are focusing on value and marketing to drive growth [7][8] Question: What are the tailwinds and headwinds for next year? - Management identified tailwinds such as better marketing and innovation, while headwinds include increased trade and competitive pressures [19][20] Question: How is the company addressing innovation in the food space? - Management noted that new product innovation is increasing but still lags behind pre-pandemic levels, with plans to support successful innovations more robustly [30][31] Question: What is the strategy for the snacks business? - The company is focusing on value adjustments and marketing improvements to enhance the performance of its snacks portfolio [60][61] Question: How does the company assess consumer willingness to pay for healthier ingredients? - Management believes that consumers are still willing to pay for quality, but value perception is critical in the current environment [70][71]

Financial Performance - In Q3 fiscal 2025, net sales decreased by 5% to $4,842.2 million, with organic net sales also down by 5% compared to the same period last year[92][96][93]. - Operating profit decreased by 2% to $891 million, with an operating profit margin of 18.4%, which is an increase of 50 basis points[92][93]. - Diluted earnings per share fell by 4% to $1.12, while adjusted diluted earnings per share decreased by 15% on a constant-currency basis to $1.00[92][93]. - For the nine-month period ended February 23, 2025, net sales were $14,930.4 million, a decrease of 1% compared to the same period last year[110][111]. - Operating profit for the nine-month period increased by 6% to $2,800.8 million, with an operating profit margin of 18.8%, up 130 basis points[109][110]. - Segment operating profit decreased 20 percent to $102 million in Q3 fiscal 2025, compared to $128 million in Q3 fiscal 2024, primarily due to higher SG&A expenses and input costs[149]. - Adjusted operating profit for the quarter ended February 23, 2025, was $800.8 million, representing a margin of 16.5%[194]. - For the nine-month period ended February 23, 2025, adjusted operating profit was $2,730.1 million, with a margin of 18.3%[194]. Sales and Revenue Breakdown - North America Retail net sales decreased 7% to $3,009.1 million in the third quarter of fiscal 2025 compared to $3,242.1 million in the same period last year[125]. - International net sales decreased 4% to $651.3 million in the third quarter of fiscal 2025 compared to $680.1 million in the same period last year[135]. - North America Pet net sales were flat at $623.7 million in the third quarter of fiscal 2025 compared to $624.5 million in the same period last year[143]. - North America Foodservice net sales increased 1 percent to $555.3 million in Q3 fiscal 2025, driven by favorable net price realization, partially offset by a decrease in volume growth contributions[151]. - North America Foodservice net sales increased 3 percent to $1,721.5 million in the nine-month period ended February 23, 2025, compared to $1,669.7 million in the same period in fiscal 2024, driven by volume growth and favorable net price realization[153]. Expenses and Costs - SG&A expenses increased by $91 million to $2,552 million in the nine-month period, with SG&A as a percentage of net sales rising by 90 basis points[116]. - Cost of sales decreased by $228 million to $9,671 million in the nine-month period, primarily due to lower volume and product rate and mix[115]. - The company recorded $56 million in unallocated corporate expenses in Q3 fiscal 2025, down from $64 million in the same period in fiscal 2024, reflecting a decrease in certain compensation and benefit-related expenses[160]. Tax and Earnings - The effective tax rate for Q3 fiscal 2025 was 19.8%, up from 18.5% in the same period last year[104][105]. - After-tax earnings from joint ventures decreased to $14 million in Q3 fiscal 2025, down from $18 million in the same period last year[106]. - After-tax earnings from joint ventures decreased to $64 million in the nine-month period ended February 23, 2025, down from $66 million in the same period last year[121]. - The effective tax rate increased to 20.5% in the nine-month period ended February 23, 2025, compared to 19.5% in the same period last year[120]. - Adjusted effective income tax rate for the quarter ended February 23, 2025, was reported at 21.0%[212]. Divestitures and Gains - A divestiture gain of $96 million was recorded in Q3 fiscal 2025 related to the sale of the Canada yogurt business[101]. - Divestiture gain of $96 million related to the sale of the Canada yogurt business in the nine-month period ended February 23, 2025[117]. - The company reported a divestiture gain related to the sale of its Canada yogurt business in fiscal 2025[182]. Cash Flow and Investments - Cash provided by operations was $2,307 million in the nine-month period ended February 23, 2025, compared to $2,439 million in the same period last year, reflecting a $132 million decrease[162]. - Cash used by investing activities was $1,579 million in the nine-month period ended February 23, 2025, compared to $508 million in the same period in fiscal 2024, including the acquisition of Whitebridge Pet Brands for $1,410 million[163]. - Cash used by financing activities was $610 million in the nine-month period ended February 23, 2025, compared to $1,928 million in the same period in fiscal 2024, with $902 million spent on common stock purchases[164]. Debt and Financial Position - The company had $1,941 million of long-term debt maturing in the next 12 months, including $800 million of fixed-rate notes due April 17, 2025[168]. - As of February 23, 2025, the company had $404 million of cash and cash equivalents in foreign jurisdictions, with plans to repatriate funds without incurring further U.S. income tax liability[165]. Regulatory Changes - The FASB issued ASU 2023-09 requiring enhanced income tax disclosures effective for fiscal 2026, with early adoption permitted[176]. - ASU 2023-07 mandates enhanced segment disclosures effective for fiscal 2025 and fiscal 2026, with retrospective application required[177]. Segment Performance - International segment operating profit decreased 39% to $63 million in the nine-month period ended February 23, 2025, compared to $103 million in the same period last year[142]. - North America Retail organic net sales decreased 2% in the nine-month period ended February 23, 2025, compared to the same period in fiscal 2024[130]. - North America Retail segment's operating profit declined by 14% for the quarter ended February 23, 2025, with no impact from foreign currency exchange[210]. - North America Pet segment's operating profit dropped by 20% for the quarter ended February 23, 2025, with no foreign currency impact[210]. - North America Foodservice segment's operating profit increased by 1% for the quarter ended February 23, 2025, with no foreign currency impact[210]. - The North America Pet segment showed a 6% increase in operating profit for the nine-month period ended February 23, 2025[210].

Financial Data and Key Metrics Changes - The company is focusing on accelerating organic growth with a target of at least 5% HMM savings and an additional $100 million in cost savings for fiscal 2026 [5][6] - Consumer confidence indices indicate that consumer confidence is currently below levels seen three months ago and is comparable to 2008 [8][9] - The company expects to reinvest savings and efficiencies to return to growth, with a focus on improving competitiveness starting in the fourth quarter [16][17] Business Line Data and Key Metrics Changes - The company is stepping up investments in pricing and marketing, particularly in the fruit snacks category, where consumers are seeking value [13][14] - New product innovations are being emphasized, with successful launches like Cheerios Protein and Nature Valley Granola Protein [31][32] - The company is experiencing challenges in the fruit snacks category due to increased competition and the introduction of private labels by major retailers [60][61] Market Data and Key Metrics Changes - The snacks category is facing a negative gap compared to previous performance, attributed to decreased consumer confidence and increased value-seeking behavior [49][50] - The company notes that food-at-home consumption has increased from 83% to 87% of occasions, indicating a shift in consumer behavior towards staples over discretionary items [52][55] Company Strategy and Development Direction - The company plans to focus on fewer but larger innovations in the upcoming fiscal year, aiming to support successful new products more robustly [32][33] - There is a commitment to improving marketing effectiveness across core brands and new product innovations [85][86] - The company is also addressing the need for better pricing strategies to align with consumer expectations and market conditions [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the consumer environment has not improved as expected, with consumers increasingly seeking value [7][8] - The company is optimistic about returning to growth, particularly in the cereal and soup categories, due to increased marketing and improved product offerings [93][94] - Management emphasizes the importance of understanding brand-specific needs and being agile in response to changing market conditions [45][46] Other Important Information - The company is facing a significant headwind from Yoplait, which is expected to impact profits by about 5 points [23][24] - There is a focus on building flexibility for additional investments in the upcoming fiscal year to drive growth [25][82] Q&A Session Summary Question: What is the incremental investment needed for fiscal 2026? - Management indicated that the consumer environment has not improved as anticipated, leading to a focus on value and effective marketing strategies [7][8] Question: Can you outline the tailwinds and headwinds for next year? - Management acknowledged both tailwinds such as improved marketing and innovation, and headwinds including increased trade and competitive pressures [19][20] Question: How does the company plan to address innovation in the food space? - Management noted that while innovation in the packaged food category has not fully recovered to pre-COVID levels, the company is ramping up its innovation efforts [27][28] Question: What is the outlook for the cereal category? - Management expressed confidence in improving cereal performance in the fourth quarter due to increased media support and effective promotions [93][94] Question: What drove the unexpected retailer inventory headwinds? - Management explained that the inventory issues were primarily seen in the pet category and were influenced by the volatility of retailer inventory levels [98][99]

Core Viewpoint - General Mills reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, but down from $1.17 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 5.26%, with the company previously expected to post earnings of $1.22 per share but actually reporting $1.40, resulting in a surprise of 14.75% [2] - Revenues for the quarter were $4.84 billion, missing the Zacks Consensus Estimate by 2.28%, and down from $5.1 billion year-over-year [3] - Over the last four quarters, General Mills has surpassed consensus EPS estimates four times and topped revenue estimates twice [2][3] Stock Performance and Outlook - General Mills shares have declined approximately 5.2% since the beginning of the year, compared to a decline of 4.5% for the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $4.75 billion, and for the current fiscal year, it is $4.36 on revenues of $19.79 billion [8] Industry Context - The Zacks Industry Rank for Food - Miscellaneous, which includes General Mills, is currently in the bottom 46% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [9]

Core Insights - General Mills reported mixed results for Q3 of fiscal 2025, with revenue of $4.8 billion falling short of analysts' expectations and down 5% year over year [2][3] - The company lowered its guidance for the remainder of the fiscal year, anticipating a decline in organic net sales and adjusted operating profit [3][10] Financial Performance - Adjusted EPS for Q3 2025 was $1.00, a 15% decline from $1.17 in Q3 2024, but above the expected $0.96 [4] - Revenue decreased to $4.84 billion from $5.1 billion in Q3 2024, reflecting a 5% year-over-year drop [4] - Adjusted operating profit fell to $801 million, down 12.4% year over year, while gross margin improved slightly to 33.9% [4][9] Segment Performance - North America Retail saw a 7% drop in net sales, and North America Pet experienced a 20% decrease in operating profit [7] - International segment sales declined by 4% due to unfavorable currency impacts, while North America Foodservice sales increased by 1% [7] Strategic Focus - General Mills is focused on product innovation and marketing to maintain competitiveness, leveraging strong brand equity and consumer preferences [5][6] - The company is implementing the Holistic Margin Management strategy to improve gross margins amidst rising input costs [9] Future Outlook - Management revised full-year guidance, predicting a 1.5% to 2% decline in organic net sales and a 7% to 8% decline in adjusted operating profit and EPS [10] - The company aims to reduce the cost of goods sold by 5% in fiscal 2026 through targeted cost efficiencies [10]

Financial Performance - Third-quarter net sales decreased by 5% to $4.8 billion, with organic net sales also down 5%, primarily due to retailer inventory reductions and unfavorable foreign currency exchange[5] - Operating profit for the third quarter was $891 million, down 2%, while adjusted operating profit decreased by 13% in constant currency to $801 million[6] - Diluted earnings per share (EPS) fell by 4% to $1.12, with adjusted diluted EPS down 15% in constant currency to $1.00[6] - The company expects organic net sales to decline by 2% to 1.5%, a revision from the previous expectation of flat to up 1%[30] - Adjusted operating profit and adjusted diluted EPS are projected to decrease by 8% to 7% in constant currency, compared to earlier estimates of a 4% to 2% decline[30] - Net earnings for the nine-month period ended February 23, 2025, were $2,016.9 million, compared to $1,958.9 million for the same period in the previous year, reflecting an increase of 2.97%[40] - Net earnings attributable to General Mills for the nine-month period ended February 23, 2025, were $2,001.2 million, compared to $1,939.1 million in the same period last year, representing an increase of about 3.2%[5] - Reported diluted earnings per share (EPS) for the quarter ended February 23, 2025, was $1.12, a decrease of 4% compared to $1.17 for the same quarter last year[68] - Adjusted diluted EPS for the same quarter was $1.00, reflecting a 15% decline from $1.17 year-over-year[68] Segment Performance - The North America Retail segment reported a 7% decline in net sales to $3.0 billion, with organic net sales down 6%[13] - The North America Pet segment's net sales were flat at $624 million, with organic net sales down 5%[15] - The North America Foodservice segment saw a 1% increase in net sales to $555 million, with organic net sales also up 1%[17] - International segment net sales decreased by 4% to $651 million, impacted by unfavorable foreign currency exchange[19] - North America Retail segment net sales fell by 7% to $3,009.1 million, while operating profit decreased by 14% to $648.1 million[36] - The International segment's net sales decreased by 4% to $651.3 million, with operating profit down 1% to $18.0 million[36] - The North America Pet segment reported flat net sales at $623.7 million, but operating profit decreased by 20% to $102.2 million[36] Cost Management and Savings Initiatives - Gross margin improved by 40 basis points to 33.9% of net sales, driven by Holistic Margin Management (HMM) cost savings, despite input cost inflation[9] - The Holistic Margin Management program is anticipated to deliver at least 5% savings in cost of goods sold for fiscal 2026, equating to approximately $600 million in gross productivity savings[27] - The company is reviewing cost-saving initiatives targeting at least $100 million in savings for fiscal 2026[27] - Unallocated corporate expenses totaled $56 million in Q3 FY2025, down from $64 million in Q3 FY2024, reflecting a decrease of approximately 12.5%[4] Cash Flow and Assets - Cash provided by operating activities totaled $2.3 billion through nine months, compared to $2.4 billion a year ago[25] - Cash flows from operating activities for the nine-month period were $2,306.6 million, down from $2,438.9 million in the prior year[40] - Cash and cash equivalents at the end of the period were $521.3 million, a decrease from $588.6 million at the end of the previous year[40] - Total assets increased to $32,706.2 million as of February 23, 2025, up from $30,860.5 million a year earlier, representing a growth of 5.97%[38] - Total current liabilities increased to $7,876.2 million from $7,061.9 million, marking a rise of 11.52%[38] - Long-term debt stood at $11,839.6 million, an increase from $11,015.1 million, indicating a rise of 7.48%[38] - Stockholders' equity decreased to $9,512.6 million from $9,691.3 million, reflecting a decline of 1.85%[38] Acquisitions and Divestitures - The company completed the sale of its Canada yogurt business for a pre-tax gain of $96 million and expects to close the sale of its U.S. yogurt business for approximately $2 billion in 2025[42] - The acquisition of NX Pet Holding, Inc. was completed for $1 billion, with recorded goodwill of $1,087 million and an indefinite-lived intangible asset of $289 million[45] - Transaction costs related to the sale of North American yogurt businesses and the Whitebridge Pet Brands acquisition totaled $33 million for the nine-month period ended February 23, 2025, compared to $1 million in the same period last year[4] - Integration costs related to the Whitebridge Pet Brands acquisition amounted to $7 million for the nine-month period ended February 23, 2025[4] Tax and Earnings Adjustments - The effective tax rate for the nine-month period ended February 23, 2025, was 20.5%, up from 19.5% in the same period last year[5] - Adjusted effective income tax rate for the quarter ended February 23, 2025, is 21.0%, compared to 18.4% for the same quarter in 2024[77] - The sum of adjustments to income taxes for the nine-month period is $(5.2) million, with a significant adjustment of $45.1 million in the previous year[77] - Goodwill impairment recorded for the nine-month period ended February 23, 2025, is $117.1 million[77] Product Management Challenges - Product recall net costs for the nine-month period are $(30.7) million, reflecting ongoing challenges in product management[77]

General Mills, Inc. (GIS) is likely to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 earnings on March 19. The Zacks Consensus Estimate for revenues is pegged at almost $5 billion, implying a 2.8% decrease from the prior-year quarter’s reported figure. The consensus mark for earnings has moved down by a penny in the last seven days to 95 cents per share, indicating a decline of 18.8% from the year-ago quarter’s reported figure. GIS has a trailing four-quarter earni ...

Core Viewpoint - General Mills Inc is set to report its fiscal third-quarter earnings, with analysts expecting earnings per share of 95 cents and revenue of $4.96 billion [1] Group 1: Stock Performance - General Mills' stock is currently down 0.1% at $59.79, having faced a decline since reaching a multi-month high of $64.95 [2] - The stock is on track for its fourth consecutive daily loss, contributing to a 6% year-to-date decline [2] Group 2: Earnings History and Expectations - Historically, General Mills' stock has either fallen or remained flat after five of its past eight earnings reports, with an average shift of 2.6% [3] - Traders are anticipating a larger-than-usual move of 6.5% for the shares following the upcoming earnings report [3] Group 3: Analyst Recommendations and Short Interest - There is potential for upgrades, as 13 out of 18 brokerage firms currently have a "hold" recommendation on the stock [4] - Short interest has increased by 17.2% over the past two reporting periods, representing 4.8% of the stock's total available float [4] Group 4: Options Activity - Bullish sentiment is evident in the options market, with a 10-day call/put volume ratio of 3.38, which is higher than 72% of annual readings [5] - General Mills has historically outperformed options traders' volatility expectations, as indicated by a Schaeffer's Volatility Scorecard of 94 out of 100 [5]

Core Viewpoint - General Mills is expected to report a decline in quarterly earnings and revenues, with analysts predicting earnings of $0.95 per share, an 18.8% decrease year-over-year, and revenues of $4.96 billion, a 2.8% decrease compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been adjusted downward by 2.4% over the past 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts forecast 'Net Sales- North America Foodservice' to reach $576.36 million, reflecting a year-over-year increase of 4.5% [5]. - 'Net Sales- International' is expected to be $686.85 million, indicating a 1% year-over-year increase [5]. - 'Net Sales- North America Pet' is projected at $636.11 million, showing a 1.9% increase year-over-year [5]. - 'Net Sales- North America Retail' is anticipated to be $3.07 billion, representing a 5.3% decrease from the previous year [6]. Operating Profit Estimates - 'Operating Profit- North America Retail' is expected to be $671.69 million, down from $752.20 million year-over-year [6]. - 'Operating Profit- International' is projected at $20.31 million, an increase from $18.20 million in the same quarter last year [7]. - 'Operating Profit- North America Pet' is forecasted to reach $131.74 million, compared to $128.30 million in the same quarter of the previous year [7]. - 'Operating Profit- North America Foodservice' is expected to be $88.74 million, up from $81.70 million in the same quarter last year [8]. Stock Performance - General Mills shares have increased by 0.5% over the past month, contrasting with a -9.6% change in the Zacks S&P 500 composite [9]. - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [9].