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General Mills Inc (GIS)
:GIS

General Mills (GIS) AI Stock Analysis

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GI

General Mills

(NYSE:GIS)

Rating:63Neutral
Price Target:
$54.00
▲(1.60%Upside)
General Mills demonstrates financial stability and attractive valuation, but faces challenges from weak technical indicators and margin pressures. Strategic initiatives could enhance long-term prospects, but the stock currently reflects short-term uncertainty.
Positive Factors
Operational Efficiency
The company reported a higher adjusted gross margin than expected, indicating improved operational efficiency.
Volume Share Improvements
Sequential volume share improvements are encouraging as analysts look ahead to easier compares.
Negative Factors
EPS Growth Challenges
The lower than expected EPS growth was driven primarily by incremental investments, most notably in GIS's recently announced launch of a new fresh pet food offering, as well as limited flexibility to offset inflation.
FY26 Guidance
The fiscal year 2026 guidance was weaker than expected despite relatively in-line OSG with operating profit/EPS expected to decline 10-15% year-over-year.
Market Share and Valuation
Relative valuation is not cheap and analysts would like to see some market share improvements to have confidence underwriting a significant margin recovery in future fiscal years.

General Mills (GIS) vs. SPDR S&P 500 ETF (SPY)

General Mills Business Overview & Revenue Model

Company DescriptionGeneral Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and salty snacks, ice cream, nutrition bars, wellness beverages, and savory and grain snacks, as well as various organic products, including frozen and shelf-stable vegetables. It also supplies branded and unbranded food products to the North American foodservice and commercial baking industries; and manufactures and markets pet food products, including dog and cat food. The company markets its products under the Annie's, Betty Crocker, Bisquick, Blue Buffalo, Blue Basics, Blue Freedom, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jus-Rol, Kitano, Kix, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Oui, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino's, Trix, Wanchai Ferry, Wheaties, Wilderness, Yoki, and Yoplait trademarks. It sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores, as well as drug, dollar, and discount chains. The company operates 466 leased and 392 franchise ice cream parlors. General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota.
How the Company Makes MoneyGeneral Mills generates revenue primarily through the sale of its consumer food products across different categories, including cereals, snacks, meals, baking products, and pet foods. The company's key revenue streams include retail sales through grocery stores, supermarkets, and mass merchandisers, as well as foodservice sales to restaurants and other foodservice providers. Additionally, General Mills benefits from strategic partnerships and joint ventures which help expand its market reach and product offerings. The company focuses on brand strength, innovation, and supply chain efficiency to maintain and grow its earnings. Significant factors contributing to its earnings include consumer trends, pricing strategies, and cost management initiatives.

General Mills Key Performance Indicators (KPIs)

Any
Any
Net Sales by Segment
Net Sales by Segment
Shows revenue generated by each business segment, indicating which products or services are most successful and where growth is occurring or slowing.
Chart InsightsGeneral Mills' North America Retail segment shows resilience with a recent uptick, despite a dip earlier in 2024. The Pet segment faces headwinds from retailer inventory reductions, impacting sales. International sales remain sluggish, reflecting global economic pressures. The North America Foodservice segment is gaining momentum, likely benefiting from strategic investments. The latest earnings call highlights a focus on cost savings and reinvestment into pricing and marketing, aiming to boost competitiveness amid consumer value-seeking behavior. These strategic shifts are crucial as the company navigates challenges in consumer confidence and inventory headwinds.
Data provided by:Main Street Data

General Mills Earnings Call Summary

Earnings Call Date:Jun 25, 2025
(Q4-2025)
|
% Change Since: -0.49%|
Next Earnings Date:Sep 17, 2025
Earnings Call Sentiment Neutral
General Mills is experiencing positive momentum in several key areas, with strong commitments to innovation and expansion, particularly in fresh pet food. However, there are notable challenges in pricing strategies, pet segment volatility, and underperformance in the salty snacks category. The focus on volume growth over pricing mix reflects a strategic adaptation to current market conditions.
Q4-2025 Updates
Positive Updates
Expansion into Fresh Pet Food
General Mills announced a national launch of their fresh pet food line, Love Made Fresh, across all 50 states. This expansion builds on positive test market results and aims to establish a profitable and growing fresh pet food business.
Volume Growth in North America Retail
The company reported encouraging volume growth in North America Retail (NAR), driven by strategic investments in products like Pillsbury, Totino's, soup, cereal, and fruit snacks.
International and Pet Segment Performance
Share growth was observed in international businesses, foodservice, healthcare, and pet segments, providing confidence in the company's global strategy.
Investment in Innovation and Marketing
General Mills is investing in new product lines and core renovations, with an expected increase in new product offerings by 25% in North America Retail and 30% company-wide, supported by significant marketing efforts.
Negative Updates
Pricing and Margin Concerns
The company is facing challenges with pricing mix and margins, with a strategic focus on volume over price/mix due to consumer sentiment and economic conditions.
Pet Segment Inventory and Market Dynamics
The pet segment has experienced inventory build-up at retail, leading to lumpiness in quarterly performance. The fresh pet market growth rate has slowed from an initial 25% to around 12-13%.
Salty Snacks Performance
The salty snacks category underperformed due to an undersized participation in major growth trends, necessitating renovations and new product launches to improve competitiveness.
Company Guidance
During the General Mills Fourth Quarter Fiscal 2025 Earnings Conference Call, the company emphasized its focus on returning to volume growth, particularly in North America Retail (NAR). They highlighted successful investments in brands like Pillsbury, Totino's, and new categories such as fresh pet food, which contributed to share growth across international, foodservice, health care, and pet divisions. The company plans to back these efforts with record levels of holistic margin management and productivity initiatives. Although they anticipate a year of investment, they are confident that these actions will yield positive results, as reflected in their guidance of a flat to slightly positive organic sales growth range of -1% to +1% for fiscal '26. The company also noted that it expects temporary factors, such as tariffs and stranded costs from the Yoplait divestiture, to impact margins, but they are focused on overcoming these challenges through strategic reinvestment and marketing efforts.

General Mills Financial Statement Overview

Summary
General Mills shows stable financial performance with strong cash flow generation and consistent profit margins. However, the slowing revenue growth and increased leverage pose potential risks.
Income Statement
75
Positive
General Mills shows a stable financial performance with a consistent gross profit margin averaging around 33-35% over the years. The net profit margin has slightly declined from 14.6% in 2022 to 11.7% in 2025, indicating some pressure on net income relative to revenue. Revenue growth has been modest, with a slight decrease in recent years, suggesting a need for strategic initiatives to boost top-line growth. EBIT and EBITDA margins have remained stable, reflecting operational efficiency.
Balance Sheet
70
Positive
The balance sheet indicates a strong equity position with a debt-to-equity ratio that has increased from 1.47 in 2020 to 1.62 in 2025, reflecting higher leverage which could pose risks if interest rates rise. Return on equity has decreased from 33.1% in 2020 to 24.8% in 2025, highlighting reduced profitability on shareholder equity. The equity ratio has remained relatively stable, showcasing a balanced approach toward asset financing.
Cash Flow
78
Positive
General Mills has demonstrated robust operating cash flows, with a strong free cash flow position consistently exceeding $2 billion. The operating cash flow to net income ratio has been favorable, underscoring the company's ability to convert earnings into cash. Free cash flow growth has been positive, although it has decelerated in recent years, pointing to potential challenges in maintaining growth without strategic reinvestment.
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue19.49B19.86B20.09B18.99B18.13B
Gross Profit6.73B6.93B6.55B6.40B6.45B
EBITDA3.90B4.08B4.08B4.16B3.89B
Net Income2.28B2.50B2.59B2.71B2.34B
Balance Sheet
Total Assets33.07B31.47B31.45B31.09B31.84B
Cash, Cash Equivalents and Short-Term Investments363.90M418.00M702.70M819.20M1.87B
Total Debt14.88B13.32B12.06B11.98B13.01B
Total Liabilities23.86B21.82B20.75B20.30B21.46B
Stockholders Equity9.20B9.40B10.45B10.54B9.47B
Cash Flow
Free Cash Flow2.92B2.53B2.09B2.75B2.45B
Operating Cash Flow2.92B3.30B2.78B3.32B2.98B
Investing Cash Flow-1.79B-1.20B-346.40M-1.69B-512.80M
Financing Cash Flow-1.18B-2.27B-2.40B-2.50B-2.72B

General Mills Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price53.15
Price Trends
50DMA
54.14
Negative
100DMA
56.57
Negative
200DMA
60.69
Negative
Market Momentum
MACD
-0.54
Negative
RSI
48.95
Neutral
STOCH
82.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIS, the sentiment is Neutral. The current price of 53.15 is below the 20-day moving average (MA) of 53.21, below the 50-day MA of 54.14, and below the 200-day MA of 60.69, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 82.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GIS.

General Mills Risk Analysis

General Mills disclosed 22 risk factors in its most recent earnings report. General Mills reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

General Mills Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KHKHC
74
Outperform
$31.55B12.095.36%6.00%-4.25%-4.04%
MKMKC
69
Neutral
$20.17B26.1014.19%2.40%0.89%4.85%
68
Neutral
¥197.40B21.118.29%2.33%4.99%3.05%
HRHRL
68
Neutral
$16.76B22.419.39%3.81%-1.01%-2.93%
CACAG
67
Neutral
$10.02B30.713.67%6.67%-3.15%-65.38%
GIGIS
63
Neutral
$28.83B12.9724.57%4.51%-1.87%-5.16%
SJSJM
47
Neutral
$11.10B22.22-17.87%4.15%6.69%-261.87%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GIS
General Mills
53.15
-7.00
-11.64%
CAG
Conagra Brands
20.99
-5.98
-22.17%
HRL
Hormel Foods
30.47
1.43
4.92%
SJM
JM Smucker
104.08
-1.58
-1.50%
MKC
McCormick & Company
75.15
6.88
10.08%
KHC
Kraft Heinz
26.66
-3.82
-12.53%

General Mills Corporate Events

Business Operations and StrategyFinancial Disclosures
General Mills Launches Global Transformation Initiative
Negative
May 27, 2025

On May 20, 2025, General Mills announced a multi-year global transformation initiative aimed at enhancing productivity through improved business processes and organizational changes. This initiative, expected to be completed by fiscal 2028, will incur charges of approximately $130 million, with significant expenses recorded in fiscal 2025, primarily for severance, impacting the company’s financials and operational strategy.

The most recent analyst rating on (GIS) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on General Mills stock, see the GIS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
General Mills Appoints New Group President for North America
Neutral
May 19, 2025

On May 19, 2025, General Mills announced the appointment of Dana M. McNabb as Group President for North America Retail and North America Pet, effective June 1, 2025. This strategic leadership change is expected to impact the company’s operations and market positioning in the North American retail and pet food sectors.

The most recent analyst rating on (GIS) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on General Mills stock, see the GIS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025