General Mills is down about 1 percent today, its second straight day of losses, and continues a slow slide that has kept it about 7 percent below its July high. We think this is mostly ordinary movement on a quiet day for the company, as the whole market is also trading a bit lower.
Our view
Shoppers are buying fewer name-brand groceries right now, which is squeezing profits, but these brands have stayed relevant for decades. If you have been thinking about buying the stock, the current low price is a fair one to pay.
Crude oil prices rose after Iran published a plan to restrict ship traffic in the Strait of Hormuz, a critical waterway for global energy supplies. For a company like General Mills, higher oil prices usually lead to higher costs for transporting cereal and snacks to grocery stores. While this is a macro event outside the company's control, it matters because it can eat into profit margins. If fuel costs stay high, the company may have to choose between raising prices for shoppers or earning less profit on each box of food sold.
New Harry Potter themed treats from Betty Crocker and Pillsbury
General Mills is releasing a new lineup of Harry Potter-themed baking products under its Betty Crocker and Pillsbury brands. These types of licensed partnerships are a common way for the company to grab attention in the crowded grocery aisle and encourage shoppers to buy more during seasonal events. While a single product launch rarely changes the company's overall financial health, it shows a focus on using well-known brands to keep sales volumes steady. This is important as the company works to keep customers from switching to cheaper store-brand alternatives.
Totino's expands snack lineup with new pizza flavors
General Mills is expanding its Totino's brand with new flavors like Garlic Parm and Chicken Bacon Ranch. The company is leaning into popular "snack hacks" that fans have shared online to create these new frozen products. The frozen snack category is a key part of the company's North American business. By refreshing the lineup with bold flavors, management is trying to protect its market share and keep sales growing in the competitive freezer section.
Partnership to expand regenerative farming across 40,000 acres
General Mills is collaborating with Walmart and ADM to promote regenerative agriculture, which are farming practices designed to improve soil health, on 40,000 acres of wheat farmland. This partnership focuses on the Midwest region where much of the company's grain is sourced. For a food company, these programs help secure a more stable supply of ingredients over the long term. While this specific project is small compared to the company's total global footprint, it aligns with broader efforts to make its supply chain more resilient to weather and environmental changes.
Analysts recently kept their cautious ratings unchanged following a flurry of activity in early July. Only 8 of 36 analysts recommend buying the stock, and the average price target of $37 suggests the price is already fairly valued.
Average target$36.92+2%vs $36.07 today
Avg price
Low $31High $47
Hold36 analysts
6Bearish
22Neutral
8Bullish
FirmRatingPrice TargetDate
UBS
Sell
$33
7/6/2026
Deutsche Bank
Hold
$32→$33
7/2/2026
Wells Fargo
Underweight
$33
7/2/2026
Jefferies
Hold
$33→$36
7/1/2026
Morgan Stanley
Underweight
$37→$32
6/5/2026
Bernstein
Market Perform
$31
6/3/2026
UBS
Sell
$35→$30
6/2/2026
Goldman Sachs
Neutral
$40→$36
6/2/2026
Piper Sandler
Overweight
$45→$41
5/13/2026
Barclays
Equal Weight
$41→$36
5/11/2026
Stifel Nicolaus
Buy
$44→$40
4/21/2026
Wells Fargo
Underweight
$35
3/12/2026
General Mills earnings
The company has a very consistent habit of beating analyst targets, which suggests management is excellent at setting expectations they can actually meet.
Earnings history
EstimateBeatMiss
General Mills past earnings results
Expected
Actual
Surprise
EPS
$0.80
$0.95
+19.2%
Revenue
$4.59B
$4.61B
+0.5%
Key highlights
Efficiency targets increasing: General Mills is launching a plan to save $3 billion by 2030, which includes redesigning its supply chain and streamlining business processes to help pay for new brand investments. Management expects to deliver at least $750 million of these savings in fiscal 2027 to offset rising costs and inflation.
Profit guidance declining: The company expects adjusted operating profit to fall between 8% and 13% in the coming year compared to the $2.8 billion it earned in 2026. This drop is driven by the loss of an extra week of sales that occurred last year, the sale of its yogurt business, and higher incentive pay for employees.
Pet segment volume struggle: Organic sales in the pet division fell 3% this quarter as shoppers bought fewer treats and dog food, even though the company increased media spending by double digits. This is a challenge because pet food is usually a high-growth area, but overall organic volume for the segment dropped 6% in the quarter.
Major non-cash losses: The company reported an operating loss of $2.1 billion, a sharp swing from the $504 million profit it made a year ago. This was caused by $2.8 billion in one-time accounting charges, including a $1 billion write-down on its Brazil business which it plans to sell.
International growth shines: International sales grew 16% to $858 million, making it the strongest performing segment this quarter. Operating profit for the division jumped 81% because the company was able to raise prices and sell more physical product in markets like Brazil, Europe, India, and China.
Fiscal 2027 sales outlook: Management expects organic net sales, which excludes the impact of the extra week and business sales, to range from a 1.5% decline to a 0.5% gain. This cautious outlook reflects a belief that consumers are still facing a difficult economic environment.
Our take: General Mills posted a soft quarter defined by significant accounting charges and a cautious outlook. While the company is hitting its cost-saving targets, the 3% drop in organic pet sales is a concern for the long-term case. These results suggest a transition year ahead as the company tries to find its footing after selling its yogurt business.
