General Mills (NYSE:GIS) Announces Earnings Results, Beats Estimates By $0.03 EPS

General Mills (NYSE:GIS) issued its quarterly earnings data on Wednesday. The company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.72 by $0.03, FiscalAI reports. The company had revenue of $4.39 billion during the quarter, compared to analyst estimates of $4.35 billion. General Mills had a positive return on equity of 21.37% and a negative net margin of 0.48%.General Mills’s revenue was down 2.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.86 earnings per share.

Here are the key takeaways from General Mills’ conference call:

• North America retail trends improved sequentially, with dollar sales improving by two points and share performance strengthening in most categories. Management expects further progress from price mix, innovation, renovation, and marketing, although Totino’s and fruit snacks remain areas of concern.
• New product activity is gaining traction, with innovation increasing to 5% of net sales from 3% two years ago. Protein cereals, Totino’s Blasted Rolls, La Tiara, and Love Made Fresh are reportedly seeing strong trial and repeat, while additional pet, snacks, and cereal launches are planned for the second half.
• Input-cost inflation is trending toward the high end of the company’s 4%-5% outlook, with inflation expected near 4% in the first three quarters and around 6% in the fourth quarter. Management said wheat, freight, fuel, fats and oils, and packaging are contributing to pressure, though hedging and cost savings are expected to offset inflation broadly for the full year.
• The pet business continues to face challenges in dry dog food, particularly the Wilderness brand, where declines accelerated and management said the product, packaging, marketing, and communications need to be reassessed. Retailer inventory is still expected to create a low-single-digit headwind for pet sales over the full year.
• General Mills reiterated plans for $750 million of cost savings this fiscal year and $3 billion by fiscal 2030, split between holistic margin management and transformation savings. Net leverage remains just above 4x EBITDA, and management expects it to take at least a couple of years to return to the 3x target.

General Mills Stock Down 2.7%

Shares of NYSE GIS opened at $34.85 on Friday. General Mills has a 52 week low of $31.75 and a 52 week high of $51.32. The stock’s fifty day moving average is $37.74 and its 200 day moving average is $36.33. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.40 and a current ratio of 0.68. The stock has a market capitalization of $18.63 billion, a P/E ratio of -21.00, a PEG ratio of 1.93 and a beta of -0.01.

General Mills Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 10th were issued a dividend of $0.61 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.44 annualized dividend and a dividend yield of 7.0%. General Mills’s payout ratio is presently -146.99%.

Analyst Ratings Changes

Several analysts recently issued reports on GIS shares. Zacks Research raised General Mills from a “strong sell” rating to a “hold” rating in a research note on Wednesday, August 12th. Piper Sandler reissued an “overweight” rating on shares of General Mills in a research note on Thursday. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $45.00 target price on shares of General Mills in a research report on Monday. BNP Paribas Exane lifted their price objective on General Mills from $37.00 to $38.00 and gave the stock a “neutral” rating in a research report on Thursday, July 2nd. Finally, Sanford C. Bernstein reaffirmed an “underperform” rating and issued a $30.00 target price on shares of General Mills in a research report on Thursday. Four investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and an average price target of $36.53.

Key Stories Impacting General Mills

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: General Mills exceeded expectations for fiscal first-quarter 2027, reporting adjusted earnings of $0.75 per share versus the $0.72 consensus and revenue of approximately $4.39 billion versus $4.35 billion expected. Improved demand for pantry staples and breakfast products helped support sales. Reuters report on General Mills sales
• Positive Sentiment: Management reaffirmed its full-year fiscal 2027 outlook and highlighted a target of roughly $750 million in cost savings. International operating profit reportedly increased 14%, while innovation focused on protein, clean-label products and other consumer trends could support a longer-term turnaround. General Mills turnaround analysis
• Neutral Sentiment: Analysts offered mixed views. TD Cowen raised its price target to $33 while maintaining a Hold rating, whereas Bernstein lowered its target to $30. RBC said improving North American retail trends could help performance, but acknowledged that the recovery remains dependent on execution. Bernstein General Mills price target
• Negative Sentiment: Revenue declined about 2.8% year over year and reported profit fell sharply, partly because the prior-year period included a substantial gain from the U.S. yogurt business divestiture. North America Retail sales dropped roughly 7%, while volumes remained under pressure as consumers resisted higher prices. Wall Street Journal General Mills results
• Negative Sentiment: Management warned that input-cost inflation could approach 6% by the fourth quarter, putting additional pressure on margins and potentially requiring further price increases. The combination of weaker consumption, pet-food headwinds and elevated costs explains why the earnings beat has not translated into stronger investor confidence. Benzinga inflation report

About General Mills

General Mills, Inc is a global food company that manufactures and markets branded consumer food products. Its portfolio includes cereals, snacks, refrigerated and shelf-stable meals, baking products, yogurt, and pet food.

The company’s brands include Cheerios, Betty Crocker, Pillsbury, Nature Valley, Old El Paso, Yoplait, Blue Buffalo, and Häagen-Dazs in markets where it owns or licenses the brand. General Mills sells its products through grocery stores, mass merchants, convenience stores, e-commerce channels, restaurants, and other foodservice providers.

General Mills traces its history to the Minneapolis Milling Company, founded in 1856, and adopted the General Mills name in 1928.