Earnings GuidanceGeneral Mills now expects FY25 adjusted EPS to be lower due to increased interest expenses related to debt for an acquisition.
Investment ImpactIncremental reinvestment, reducing FY25 EBIT/EPS guidance, is disappointing and reinvigorates debate for industry pricing power and catalysts to stimulate weak U.S. grocery volumes.
ValuationSince FQ1 EPS shares are down 12% and valuation premium has compressed, there is limited interest to buy into weakness for now lacking better visibility into pricing/promo.