Core Insights - General Mills reported revenue of $4.86 billion for the quarter ended November 2025, reflecting a year-over-year decline of 7.2% and an EPS of $1.10, down from $1.40 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $4.77 billion by 1.89%, while the EPS surpassed the consensus estimate of $1.02 by 7.84% [1] Financial Performance Metrics - North America Foodservice net sales were $581.8 million, below the average estimate of $589.13 million, marking a year-over-year decline of 7.7% [4] - International net sales reached $728.9 million, exceeding the estimated $710.94 million, with a year-over-year increase of 5.6% [4] - North America Pet net sales were $660.4 million, surpassing the average estimate of $649.02 million, showing a year-over-year growth of 10.8% [4] - North America Retail net sales totaled $2.88 billion, slightly above the estimated $2.83 billion, but represented a significant year-over-year decline of 13.2% [4] Operating Profit Analysis - North America Retail operating profit was $682.3 million, exceeding the average estimate of $650.78 million [4] - International operating profit was reported at $28.4 million, higher than the estimated $19.06 million [4] - North America Pet operating profit was $123.1 million, slightly below the average estimate of $125.48 million [4] - North America Foodservice operating profit was $104.8 million, compared to the average estimate of $112.21 million [4] Stock Performance - General Mills shares have returned -1.4% over the past month, while the Zacks S&P 500 composite increased by 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported improvement in organic sales and Holistic Margin Management, with a focus on transformation initiatives [4][5] - Pricing adjustments have been effective, with over 90% of pricing actions performing as expected [5][19] - The company anticipates profit growth in the fourth quarter, aided by favorable trade timing and the 53rd week [9][61] Business Line Data and Key Metrics Changes - North America Retail has shown growth in volume share across eight of the top ten categories, with a focus on the Remarkability Framework [6][14] - The North America Pet segment has gained share in core products, with the Life Protection Formula performing well [6][8] - The Love Made Fresh initiative has reached approximately 5% market share among early customers, with strong consumer ratings [7][8] Market Data and Key Metrics Changes - The pet category overall grew about 1% in Q2, with dog feeding lagging behind due to shifts in consumer behavior [32] - The cereal category remains under pressure, with a decline of about 3%, but there are signs of improvement in specific products like Cheerios [70] Company Strategy and Development Direction - The company aims to maintain momentum in organic sales and profitability through strategic pricing and product innovation [4][9] - There is a focus on enhancing the Remarkability Framework across all business lines to drive growth [30][39] - The company is monitoring competitive pricing strategies and believes it is well-positioned against competitors [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the fiscal year, expecting continued improvement in sales and profitability [28][29] - The operating environment remains volatile, with potential impacts from government actions and consumer sentiment [66] - Management is confident in the ability to deliver transformation savings and maintain competitive pricing [76] Other Important Information - The company has completed pricing adjustments on two-thirds of its portfolio, with positive responses in most categories [74] - There is ongoing work to improve the performance of the Wilderness brand, with new product launches planned [78] Q&A Session Summary Question: Sustainability of volume growth in North America Retail - Management acknowledged some shipment timing benefits but remains optimistic about continued category improvement [12][14] Question: Competitive environment and pricing strategies - Management noted that discounting levels have remained stable and emphasized the importance of effective execution in pricing [16][18] Question: Expectations for fiscal 3Q and 4Q - Management expects improvements in price mix and volume growth, but cautioned about potential volatility [25][29] Question: Impact of Love Made Fresh on base business - Management indicated it is too early to assess the impact of Love Made Fresh on the core business [58][60] Question: Inflation and cost of goods sold outlook - Management reaffirmed guidance for base inflation around 3% and noted minimal tariff impacts [51][52] Question: Performance of the pet category - Management reported that the dog feeding segment is lagging, but long-term growth is expected due to trends in humanization [32][33] Question: Effectiveness of pricing investments - Management reported a high success rate in pricing adjustments, with ongoing monitoring of performance [74][76] Question: Channel shifts in pet purchases - E-commerce is identified as a growing channel for pet purchases, reflecting consumer behavior changes [90]

Financial Data and Key Metrics Changes - The company reported improvement in organic sales and effective execution of Holistic Margin Management and transformation initiatives [4][5] - Pricing adjustments have been successful, with over 90% of pricing actions performing as well or better than expected [5] - The company anticipates profit growth in the fourth quarter, aided by favorable trade timing and the 53rd week [9] Business Line Data and Key Metrics Changes - North America Retail has shown growth in volume share in eight of the top ten categories, with a focus on the Remarkability Framework [6][8] - The North America Pet segment has gained share in its core business, particularly in the Life Protection Formula and treats [6][7] - The Love Made Fresh initiative has reached approximately 5% market share among early customers, with strong consumer ratings [7][8] Market Data and Key Metrics Changes - The pet category overall was up about 1% in Q2, with dog feeding lagging behind due to shifts in consumer behavior and discretionary spending [32] - The cereal category remains under pressure, with a decline of about 3%, as consumers shift towards high-protein alternatives [69] Company Strategy and Development Direction - The company aims to continue driving category improvement and competitiveness in North America Retail while managing pricing effectively [14][18] - There is a focus on innovation and marketing improvements, with expectations for new product launches and advertising to support growth [18][39] - The company is committed to monitoring the competitive environment and adjusting strategies as necessary [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a volatile environment with potential impacts from government actions and consumer sentiment [28][66] - There is cautious optimism for continued organic sales improvement in the second half of the fiscal year, with a focus on price mix and volume recovery [29][66] - The company remains confident in its ability to deliver transformation savings and maintain profitability despite inflationary pressures [77][66] Other Important Information - The company has completed pricing adjustments on two-thirds of its portfolio, with positive responses in most categories [75] - The management is focused on improving the performance of underperforming segments, such as Wilderness, with new product launches and marketing strategies [79] Q&A Session Summary Question: Sustainability of volume growth in North America Retail - Management noted a slight shipment timing benefit in Q2 but expects to continue driving category improvement in the second half [14] Question: Competitive environment and pricing strategies - Management indicated that competitive discounting levels have remained stable, and they are confident in their pricing execution [18][19] Question: Expectations for fiscal 3Q and 4Q - Management expects improvement in the second half, with a focus on price mix and volume recovery, though some timing impacts may affect results [29] Question: Consumer behavior in pet feeding category - The pet category is seeing a shift towards e-commerce, with dog feeding lagging due to consumer pullback in discretionary spending [32][91] Question: Inflation and cost of goods sold outlook - Management reaffirmed a base inflation forecast of around 3%, with expectations for tariff impacts to continue [52][66] Question: Effectiveness of pricing investments - Management reported a high success rate for pricing adjustments, with ongoing monitoring of performance in specific categories [75][88]

Financial Data and Key Metrics Changes - The company reported continued improvement in organic sales and effective execution of its transformation initiatives, particularly in North America Retail [3][4] - Pricing actions have been successful, with over 90% of the pricing strategies implemented performing as well or better than expected [4][17] - The company anticipates profit growth in the fourth quarter, aided by favorable trade timing and the addition of a 53rd week [8] Business Line Data and Key Metrics Changes - North America Retail has shown growth in volume share across eight of the top ten categories, with a focus on strategic pricing adjustments [3][5] - The North America Pet segment has gained share in its core business, with mid-single-digit growth in the cat category and positive momentum in the treats business [5][6] - The Love Made Fresh initiative has reached approximately 5% market share among early customers, with plans to expand distribution [6][7] Market Data and Key Metrics Changes - The pet category overall grew about 1% in Q2, with dog feeding lagging behind due to shifts in consumer behavior and preferences [25][27] - The cereal category remains under pressure, with a decline of about 3%, as consumers shift towards high-protein alternatives [61][62] Company Strategy and Development Direction - The company aims to maintain momentum in organic sales while focusing on profitability improvements in the second half of the fiscal year [8] - The Remarkability Framework is central to the company's strategy, emphasizing pricing, product innovation, and marketing effectiveness [4][16] - The company is confident in its competitive positioning and plans to continue leveraging its pricing strategies without resorting to deep discounting [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainability of volume growth in North America Retail, despite some shipment timing benefits [13] - The competitive environment remains rational, with no significant increase in discounting levels observed [15][16] - The company is cautious about the volatile environment, including potential impacts from government actions and consumer sentiment [21][58] Other Important Information - The company has maintained its annual guidance despite ongoing volatility in the sector, indicating confidence in its ability to navigate challenges [58] - The transformation initiatives are expected to deliver savings above 4% in the coming year, contributing to overall profitability [68] Q&A Session Summary Question: Sustainability of volume growth in North America Retail - Management acknowledged some shipment timing benefits but remains optimistic about continued category improvement and competitiveness in the second half [13] Question: Competitive environment and pricing strategies - Management noted that discounting levels have not increased significantly and emphasized the importance of executing pricing strategies effectively [15][16] Question: Expectations for fiscal 3Q and 4Q - Management indicated that while there may be a trade-off between Q3 and Q4 performance, they expect overall improvement in organic sales [22] Question: Consumer behavior in the pet category - Management highlighted a shift towards e-commerce for pet purchases and noted that the dog feeding segment continues to lag behind [80] Question: Impact of pricing investments on volume - Management reported that nearly 90% of pricing investments have met or exceeded expectations, with ongoing monitoring of performance [31][66] Question: Inflation and cost of goods sold outlook - Management reaffirmed guidance of approximately 3% base inflation, with additional tariff headwinds expected [41][42] Question: Performance of the Wilderness brand - Management acknowledged underperformance in the Wilderness brand and outlined plans for new product launches and improved marketing strategies [70]

Core Insights - General Mills reported quarterly earnings of $1.1 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, but down from $1.4 per share a year ago [1] - The company achieved an earnings surprise of +7.84% for the quarter, having also surpassed consensus EPS estimates in the previous four quarters [2] - Revenues for the quarter were $4.86 billion, surpassing the Zacks Consensus Estimate by 1.89%, but down from $5.24 billion year-over-year [3] Earnings Performance - The earnings surprise of +7.84% indicates strong performance relative to expectations, with a previous quarter surprise of +6.17% [2] - General Mills has consistently exceeded consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] Revenue Analysis - The reported revenue of $4.86 billion reflects a decline from the previous year's revenue of $5.24 billion, although it still surpassed expectations [3] - The company has topped consensus revenue estimates two times in the last four quarters, showcasing some resilience in revenue generation [3] Stock Performance and Outlook - General Mills shares have declined approximately 26.3% year-to-date, contrasting with the S&P 500's gain of 15.6%, indicating underperformance in the market [4] - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for earnings revisions [4][5] Earnings Estimates and Industry Context - Current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $4.59 billion, with an annual estimate of $3.64 on revenues of $18.57 billion [8] - The Zacks Industry Rank places the Food - Miscellaneous sector in the bottom 21% of over 250 industries, suggesting potential challenges ahead for General Mills [9] Competitor Insights - Conagra Brands, a competitor in the same industry, is expected to report quarterly earnings of $0.44 per share, reflecting a year-over-year decline of -37.1% [10] - Conagra's anticipated revenues are projected at $3 billion, down 6.2% from the previous year, indicating similar pressures within the industry [11]

Core Viewpoint - General Mills Inc. reported better-than-expected second-quarter earnings and revenue, reaffirming its fiscal 2026 outlook, indicating strong consumer demand and effective brand investments despite ongoing cost pressures [1][10]. Financial Performance - The company achieved second-quarter adjusted earnings per share of $1.10, surpassing the analyst consensus estimate of $1.03 [2]. - Quarterly sales reached $4.86 billion, a 7% decline year over year, but exceeded the expected $4.781 billion [3]. - Organic net sales decreased by 1%, attributed to unfavorable price realization and product mix [3]. Segment Performance - North America Retail segment net sales fell 13% to $2.9 billion [5]. - North America Pet segment sales increased by 11% to $660 million [5]. - North America Foodservice segment sales decreased by 8% to $582 million [5]. - International segment net sales rose by 6% to $729 million, with organic net sales up 4%, driven by growth in Brazil, China, India, and North Asia [5]. Operational Metrics - Constant-currency net sales at Cereal Partners Worldwide fell by 1%, while Häagen-Dazs Japan remained flat year over year [6]. - Joint ventures reported a $60 million after-tax loss, a shift from a $30 million profit last year, due to an $85 million non-cash goodwill impairment related to CPW Australia [6]. - Adjusted gross margin decreased by 150 basis points to 34.8% of net sales, primarily due to higher input costs [7]. Future Outlook - The company anticipates organic net sales to range from a 1% decline to 1% growth [10]. - Adjusted operating profit and adjusted diluted EPS are projected to decline by 10% to 15% in constant currency [10]. - General Mills plans to invest in brand initiatives to drive volume-led organic sales growth, expecting a 25% increase in sales from new products in fiscal 2026 [10]. - Management indicated that brand investments are expected to support long-term growth despite short-term profit and EPS pressures [11][12].

Core Insights - General Mills' latest earnings reveal significant strain on U.S. consumers and the broader economy, with organic net sales down 1%, adjusted operating profit down 20%, and margin compression in North America [1][4]. Consumer Behavior - Lower-income and middle-class consumers are increasingly opting for generic store brands to manage grocery expenses, negatively impacting General Mills, which produces brands like Cheerios and Nature Valley [2][6]. - Despite a trend of eating at home, consumers are not necessarily choosing General Mills' products, indicating a shift in purchasing behavior [3]. Economic Context - The post-pandemic inflation allowed brands to raise prices, but consumers remain cautious due to a sluggish job market, leading to lower volumes and increased promotional needs for General Mills [4][6]. - The economic environment is characterized by a bifurcated consumer base, with high-income shoppers continuing to spend while lower-income shoppers are cutting back [6][7]. Market Performance - General Mills' stock performance reflects broader consumer trends, with a modest 2% increase indicating relief rather than renewed growth confidence [5]. - The operating profit in North America has fallen over 20% year-over-year, aligning with trends reported by major grocery partners like Kroger [6]. Macro Economic Factors - The U.S. economy is facing a volatile backdrop with high effective tariff rates and persistent inflation pressures, contributing to a lack of renewed economic momentum [7]. - The Federal Reserve's cautious approach following interest rate cuts adds to the uncertainty in the economic landscape [7].

Financial Performance - Q2 Fiscal Year 2026 - Net sales decreased by 7% to $4.861 billion, while organic net sales decreased by 1%[80] - Adjusted operating profit decreased by 20% to $848 million[80] - Adjusted diluted EPS decreased by 21% to $1.10[80] - Adjusted gross margin decreased from 36.3% to 34.8%[103] Segment Performance - Q2 Fiscal Year 2026 - North America Retail organic net sales decreased by 3%[87] - North America Pet organic net sales increased by 1%[89] - North America Foodservice organic net sales was flat[92] - International organic net sales increased by 4%[94] Fiscal Year 2026 Outlook - The company reaffirmed its fiscal year 2026 outlook, including organic net sales growth of -1% to +1%[10, 75] - Adjusted operating profit growth of -15% to -10%[75] - Adjusted diluted EPS growth of -15% to -10%[75]

格隆汇12月17日｜通用磨坊公布第二财季业绩，销售额为48.6亿美元，同比下降7%，仍超过分析师预 期的48.18亿美元；经营利润为7.28亿美元，同比下降32%；摊薄后每股收益为0.78美元。通用磨坊确认 2026财年调整后每股收益指引为3.58至3.79美元，分析师预期为3.65美元。 ...

Core Insights - General Mills reported a decline in second-quarter profit and sales as the company implements price cuts to attract consumers affected by inflation [1] Financial Performance - The company experienced lower profit and sales figures in the second quarter [1] - Price cuts are being utilized as a strategy to draw in inflation-weary consumers [1]