General Mills, Inc. manufactures and markets branded consumer food in the United States and internationally. It operates through four segments: North America Retail; International; North America Pet; and North America Foodservice. The company offers snacks, ready-to-eat cereal, convenient meals, wholesome natural pet food, refrigerated and frozen dough, baking mixes and ingredients, and ice cream products. It also offers dog and cat food, and operates 232 and franchises 376 ice cream parlors. Products are marketed under brands such as Annie's, Betty Crocker, Bisquick, Blue Buffalo, Cheerios, Häagen-Dazs, Pillsbury, Progresso, and Yoplait. The company was founded in 1866 and is headquartered in Minneapolis, Minnesota.
General Mills beats earnings, plans $3B cost cuts, but sales stay weak
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Earnings beat and $3B cost savings plan General Mills reported quarterly adjusted earnings of 95 cents per share, beating estimates of 80 cents, and announced a plan to cut $3 billion in costs by 2030. This drove the stock up 7.2% as investors saw a path to higher profits.
This is the main new event that moved the stock sharply higher.
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Weak organic sales and consumer spending slump Organic sales were flat for the quarter and down 2% for the year, as shoppers cut back and bought cheaper items. The company also reported a $2.1 billion operating loss due to price cuts and one-time charges, highlighting ongoing demand challenges.
This is the key counterweight explaining why the stock isn't higher despite the earnings beat.
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Pet business grows while cereal struggles The pet segment, including Blue Buffalo and Tiki Cat, grew 4% and was the only North American unit to expand. This offers a bright spot amid otherwise weak cereal sales, helping support the stock.
Shows a specific growth area that investors are watching.
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Fed rate hike signal pressures dividend stocks The Federal Reserve hinted at a possible rate hike, which pushed bond yields higher and made dividend-paying stocks like General Mills less attractive. The stock fell 3% on that day, as higher rates also raise borrowing costs.
This is a new monetary policy development affecting the stock's appeal.
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General Mills Q1 Beat, Cost Cuts, But Inflation and Weak Demand Persist
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Q1 earnings beat and full-year outlook reaffirmed General Mills reported first-quarter adjusted EPS of 75 cents, beating the 72-cent consensus, and reaffirmed its full-year earnings guidance of $3.00 to $3.20 per share. The beat signals the company is managing through challenges better than feared, which supports the stock price.
This is the main new event of the period and directly affects investor expectations for GIS.
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Cost savings on track, debt reduction prioritized General Mills is on track to save $750 million this fiscal year and $3 billion by 2030, with excess cash going to debt reduction. Lower debt and higher savings boost future profits and make the stock more attractive to investors.
Cost savings and debt reduction are key drivers of future profitability and stock valuation.
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Weak demand and margin pressure from inflation Retail consumption fell 2% and adjusted EPS dropped 13% due to higher input costs and lower volumes. Management warned of more quarters of pressured margins from inflation in wheat, diesel, and packaging, which weighs on the stock.
This is the main negative force offsetting the positive earnings beat and cost savings.
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Analysts split on recovery, price targets diverge Analysts are divided: Deutsche Bank and Barclays raised price targets, while BofA and Freedom Broker cut theirs. The split reflects uncertainty about whether the turnaround is sustainable, keeping the stock range-bound.
Analyst reactions show the market's mixed view on GIS's recovery prospects.
Q3 2026
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General Mills hit by write-down, tariffs, and inflation; cost cuts offer support
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Write-down and annual loss A $1.75 billion write-down pushed General Mills to a rare annual loss, signaling deeper troubles in its brand portfolio and weighing on investor sentiment.
This is a major new negative event that directly impacted the stock.
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Regulatory and trade pressures New artificial-dye rules and Canadian retaliatory tariffs of 15–50% on U.S. food exports pressured volumes and profits, adding to the company's challenges.
These are new external pressures that hurt sales and margins.
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Inflation and consumer trade-down Inflation in wheat, diesel, and packaging drove a 13% EPS drop and a 2% retail consumption decline, as shoppers traded down to store brands, with management warning of continued margin pressure.
This explains the earnings decline and weak demand, key negative drivers.
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Cost savings and earnings beat Q1 adjusted EPS of 75 cents beat consensus, full-year guidance was reaffirmed, and cost savings remain on track ($750 million this year, $3 billion by 2030), with excess cash reducing debt.
This positive news provided a counterweight to the negative pressures.
News & notes movingGIS
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GIS
General Mills Shows Early Turnaround Signs as Wall Street Splits on Recovery
General Mills is showing early signs that its fiscal 2026 trough may be behind it, though the latest quarter does not yet establish a full recovery. Organic sales were flat in the first quarter, North America Retail organic sales declined 3% but retail sales growth improved by two percentage points sequentially, and management said new products rose from 3% to 5% of sales over two years, with CEO Jeff Harmening crediting marketing and product news rather than pricing for gains in brands such as Lucky Charms, Reese's Puffs, and Cinnamon Toast Crunch. Profitability still lags, with adjusted gross margin down 90 basis points to 33.3%, adjusted operating profit down 11% in constant currency, and adjusted EPS down 13% to $0.75, while management expects input inflation around 4% in the first three quarters and roughly 6% in the fourth and targets at least $750 million of fiscal 2027 savings. Analysts are divided: Deutsche Bank raised its price target to $34 from $33 with a Hold rating, TD Cowen called the quarter encouraging, Barclays raised its target to $37 from $36 but kept Equal Weight, while BofA cut its target to $40 from $43 and Freedom Broker cut its target to $38 from $42. At roughly 11.6 times forward earnings, General Mills trades near Campbell's at 11.9 times, with short interest at 44.83 million shares, or 10.91% of the float.
GIS · Capital · Neutral Mixed analyst reactions with split price-target changes (DB/Barclays up, BofA/Freedom down) and adjusted EPS down 13% to $0.75, offset by early turnaround signs.
Bond Yields Rise as Inflation Squeezes Economy, Fed Tightens
The relentless rise in bond yields is being driven not by warnings about the nation's debt but by an economy weakening under the tightening grip of inflation just as the Federal Reserve makes borrowing costlier for businesses and consumers. BlackRock chief investment officer of global fixed income Rick Rieder called the move not a crisis but an eye-opener, and noted it is something you have got to think about. Payroll services company Paychex said this week that we are in a low-hire, low-fire environment, while General Mills warned of more quarters of pressured margins from a big pickup in inflation in wheat, diesel, and packaging. Cracker Barrel called out a 6.1% traffic drop in its most recent quarter, and Darden said sales at its Olive Garden chain grew just 1.1% in the quarter, a read that much higher gas prices are swallowing up the disposable income of many households. The commentary comes as Fed hawks like New York Fed president John Williams continue to signal rate hikes.
CBRL · Demand · Negative Cracker Barrel called out a 6.1% traffic drop in its most recent quarter, signaling weaker customer demand.
DRI · Demand · Negative Darden said Olive Garden sales grew just 1.1% as higher gas prices swallowed household disposable income.
GIS · Supply · Negative General Mills warned of more quarters of pressured margins from a big pickup in inflation in wheat, diesel, and packaging inputs.
PAYX · · Neutral Paychex said we are in a low-hire, low-fire environment, a labor-market read with no clear directional impact on the company.
General Mills Beats Q1 Estimates as Sales Fall 3% to $4.4 Billion
General Mills reported fiscal 2027 first-quarter results on September 23, with net sales down 3% to $4.4 billion and adjusted diluted EPS down 13% in constant currency to $0.75, both slightly ahead of analyst expectations of $4.35 billion in revenue and $0.72 in adjusted diluted EPS. The company reaffirmed its full-year fiscal 2027 outlook, expecting organic net sales between a 1.5% decline and 0.5% growth and adjusted diluted EPS of $3.00 to $3.20, below the $3.55 reported for fiscal 2026. The sales decline was mainly attributed to the divestiture of the US yogurt business, completed in the first quarter of fiscal 2026, and General Mills also completed the sale of its Brazil business on September 2, 2026, after the end of the first quarter of fiscal 2027. The company is targeting $3 billion in cumulative cost savings by fiscal 2030 through its Holistic Margin Management productivity program and global transformation initiative, with $750 million of that expected in fiscal 2027. Management flagged continued pressure in the Totino's business and accelerating declines in the Wilderness pet dry dog food brand, while hedge fund holdings rose to 46 in the second quarter from 44 in the first and short interest stood at 10.91% of the float as of September 15.
GIS · Capital · Neutral Q1 sales fell 3% to $4.4B and adjusted EPS dropped 13%, but both slightly beat analyst estimates while full-year guidance was reaffirmed below prior-year EPS.
Five of Six S&P 500 Firms Beat EPS Estimates as Costco and Cintas Lead Results
Five of the six S&P 500 companies reporting earnings this week topped consensus EPS estimates, with one matching expectations and none missing, while five of the six also expanded profits year over year. Costco Wholesale reported fiscal fourth-quarter net sales up 12% to $95.72 billion, beating estimates by $830 million, with diluted EPS up 15% to $6.57 and global adjusted comparable sales up 6.7%. Cintas posted fiscal first-quarter revenue up 11% year over year to $3.01 billion and adjusted EPS of $1.39, and raised its fiscal 2027 revenue guidance to $12.15 billion to $12.27 billion and adjusted EPS guidance to $5.45 to $5.54. AutoZone reported fiscal fourth-quarter revenue up 5.6% to $6.59 billion with EPS of $56.05, General Mills posted revenue of $4.4 billion and adjusted EPS of $0.75 with full-year EPS guidance of $3.00 to $3.20, and Paychex reported revenue up 6% to $1.63 billion with adjusted EPS of $1.34. Darden Restaurants reported first-quarter revenue of $3.2 billion, missing estimates by $10 million, with fiscal 2027 EPS guidance of $11.10 to $11.35 below the analyst forecast.
COST · Capital · Positive Costco's fiscal Q4 net sales rose 12% to $95.72 billion, beating estimates, with diluted EPS up 15% to $6.57.
CTAS · Capital · Positive Cintas posted fiscal Q1 revenue up 11% to $3.01 billion and adjusted EPS of $1.39, and raised its fiscal 2027 guidance.
DRI · Capital · Negative Darden's Q1 revenue of $3.2 billion missed estimates by $10 million and its fiscal 2027 EPS guidance came in below analyst forecasts.
PAYX · Capital · Positive Paychex reported revenue up 6% to $1.63 billion with adjusted EPS of $1.34, beating estimates.
AZO · Capital · Positive AutoZone reported fiscal Q4 revenue up 5.6% to $6.59 billion with EPS of $56.05, a positive earnings result.
GIS · Capital · Positive General Mills posted revenue of $4.4 billion and adjusted EPS of $0.75 with full-year EPS guidance of $3.00 to $3.20.
General Mills Targets $750 Million in Fiscal 2027 Cost Savings as Q1 Retail Consumption Falls 2%
General Mills said it remains on track to deliver $750 million in cost savings this fiscal year and $3 billion by fiscal 2030, even as retail consumption fell 2% in the first quarter of fiscal 2027 and the company has not yet returned to growth. The $3 billion total breaks down into $2 billion from HMM and $1 billion from transformation initiatives, with the planned reduction of leverage back to a 3 times net debt to EBITDA target embedded in those transformation goals through 2030. Chief Financial Officer Kofi Bruce said first-quarter inflation landed at roughly the low end of the 4% to 5% range, around 4%, but that the fourth quarter could run just outside the range at around 6%, with wheat about three-quarters hedged for the year. Chief Operating Officer Dana McNabb said dollar sales improved by 2 points and share improved in the majority of categories, with price mix expected to improve starting in the second quarter as the company laps its base price investments, supported by premium innovation and price pack architecture. She flagged Totino's, where declines were cut in half, and fruit snacks as areas needing more work, and said the dry dog food business, particularly the Wilderness brand, saw accelerated declines and requires a complete overhaul of product, packaging and marketing. E-commerce is growing faster than brick-and-mortar, representing over 20% of human food sales and 30% of pet food sales, while new products have risen from 3% to 5% of net sales over the last two years.
Cracker Barrel Posts 395% Earnings Surprise as General Mills and KB Home Also Beat
Cracker Barrel Old Country Store posted a positive earnings surprise of 395% in its fiscal Q4 report, sending shares up 6.8% in early trading and adding to a 79% gain year to date. General Mills beat expectations on both top and bottom lines, with earnings of $0.75 per share topping the Zacks consensus by 3 cents on revenues of $4.39 billion, 1.04% above estimates, though its shares traded flat and remain down 23.8% in 2026. KB Home surpassed forecasts with earnings of $1.05 per share on $1.3 billion in revenues, ahead of expectations for $0.88 per share and $1.29 billion in sales, but shares fell 3% as the homebuilder warned of headwinds in the present quarter including higher mortgage rates. Pre-market indices slipped, with the Dow down 174 points, the Nasdaq down 94, the S&P 500 down 11 and the Russell 2000 down 17, while WTI crude sat at $90 per barrel and Brent at $100 per barrel and the 10-year yield held at 4.99%. Fed Governor Michael Barr is set to speak on housing affordability at the Federal Reserve Bank of Chicago, and flash S&P Manufacturing and Services PMI for September are due after the open, with Manufacturing expected at 53.5 and Services at 55.7.
General Mills Backs Full-Year Outlook as Q1 Declines Beat Expectations
General Mills said its turnaround is progressing, with first-quarter profit and sales declines that were less steep than the company and Wall Street expected. Sales for the quarter ended Aug. 30 fell 2.8% to $4.39 billion, ahead of Wall Street models for $4.35 billion, according to FactSet, a decline the company attributed primarily to the sale of its U.S. yogurt business last year; on an organic basis, sales were essentially flat. Adjusted earnings came in at 75 cents a share, ahead of Wall Street models for 72 cents a share, while profit was $397 million, down from $1.2 billion a year earlier. Chief Operating Officer Dana McNabb said the company's full focus this year is on accelerating product innovation and renovation, supported by stepped-up marketing, new agency partners, a next-generation content studio and doubled use of influencers. General Mills said it remains on track to deliver $750 million in savings this year and $3 billion by 2030, and backed its full-year outlook for adjusted earnings of $3 to $3.20 a share, against analyst expectations of $3.07 a share.
General Mills Set to Report Q1 Earnings With EPS Seen Down 16.3%
General Mills is scheduled to announce its Q1 earnings results on Wednesday, September 23rd, before market open. The consensus EPS estimate is $0.72, down 16.3% year over year, and the consensus revenue estimate is $4.35B, down 3.3% year over year. Over the last two years, General Mills has beaten EPS estimates 88% of the time and revenue estimates 38% of the time. Over the last three months, EPS estimates have seen 0 upward revisions and 11 downward, while revenue estimates have seen 2 upward revisions and 7 downward.
GIS · Capital · Negative Consensus Q1 EPS seen down 16.3% YoY and revenue down 3.3%, with 11 downward EPS revisions and no upward revisions in three months.
General Mills Reaffirms Fiscal 2027 Outlook as Cramer Flags 6.72% Dividend Yield
General Mills reaffirmed its fiscal 2027 outlook on September 8, calling for organic net sales ranging from a 1.5% decline to 0.5% growth, adjusted operating profit down 8% to 13% in constant currency, and adjusted diluted EPS of $3 to $3.20. The guidance follows a difficult fiscal 2026 in which net sales fell to $18.42 billion from $19.49 billion, adjusted operating profit dropped 16% to $2.81 billion, and adjusted diluted EPS declined 16% to $3.55, while adjusted operating margin fell 190 basis points to 15.3%. CEO Jeff Harmening said on September 8 that the company was seeing improving retail sales trends and positive consumer response to its innovation efforts, but added that there is still important work to do. On the September 18 episode of Mad Money, Jim Cramer pointed to the stock's 6.72% dividend yield as a red flag, citing input costs, GLP-1s, and processed food, and said he cannot recommend it. General Mills is scheduled to report fiscal 2027 first-quarter results on September 23.
GIS · Capital · Negative Reaffirmed weak fiscal 2027 guidance with adjusted operating profit down 8-13% and EPS of $3-$3.20 after a 16% profit decline in fiscal 2026.
GIS · Demand · Negative Cramer flagged GLP-1s and processed food as headwinds and said he cannot recommend the stock despite the 6.72% dividend yield.
Costco, General Mills and KB Home Earnings Plus August New Home Sales on Tap
Investors this week will watch quarterly earnings from Costco, General Mills and KB Home alongside August new home sales data. Costco reports results on Thursday, with monthly net sales up roughly 10% in June, July and August, while analysts look for signs of slowing comparable store sales and whether higher fuel prices are pushing shoppers toward more essential-focused spending. General Mills reports on Wednesday, entering fiscal 2027 after cutting prices and increasing spending on innovation and advertising, with first-quarter organic sales growth expected below the low end of the company's full-year range and North America Retail seen as the biggest pressure point. KB Home reports on Tuesday, with analysts anticipating net new home orders to fall 3.4% as weaker affordability and consumer confidence create risk to the company's full-year delivery outlook. August new home sales data arrives Thursday, with economists forecasting sales to tick up to an annualized pace of 620,000, offering another look at how buyers are responding to elevated mortgage rates and affordability pressures.
COST · Demand · Neutral Costco reports Thursday with monthly net sales up ~10% but analysts watch for slowing comparable store sales and fuel-price-driven shifts to essentials.
GIS · Demand · Negative General Mills enters fiscal 2027 after price cuts and higher innovation/ad spending, with Q1 organic sales growth expected below the low end of its full-year range and North America Retail the biggest pressure point.
KBH · Demand · Negative KB Home reports Tuesday with analysts expecting net new home orders to fall 3.4% as weaker affordability and consumer confidence risk its full-year delivery outlook.
McDonald's CEO says more adults are buying Happy Meals as GLP-1 drugs shrink appetites
McDonald's CEO Chris Kempczinski said in a recent interview with Harvard Business Review that more adults are turning to smaller menu items, including Happy Meals, as GLP-1 weight-loss drugs like Wegovy and Ozempic shrink their appetites. About 11% of U.S. adults in 2026 take GLP-1 drugs, according to a Gallup study reported by USA Today. Kempczinski has said he does not believe GLP-1 drugs will have a material impact on McDonald's business, but the chain has been testing lighter menu options, less-sugary beverages and different portion sizes, and executives have highlighted protein-rich items such as Snack Wraps, Sausage Biscuit sandwiches and chicken McCrispy Strips as an area of strength with GLP-1 consumers. Other companies are responding too: Shake Shack rolled out its Good Fit Menu in December, General Mills and Conagra Brands now offer smaller-portion products, and PepsiCo CEO Ramon Laguarta told Yahoo Finance the company is leaning into portion control for parts of its portfolio.
General Mills Expands Progresso and Annie's With Trend-Driven Launches
General Mills expanded its Progresso Pitmaster BBQ-inspired soup lineup with two high-protein flavors and introduced two new Annie's mac and cheese varieties, including an online-exclusive SUPER! Mac Dill Pickle Mac & Cheese, in early September 2026. The company is partnering Progresso with Hidden Valley Ranch and leaning into bold, trend-driven flavors at Annie's as part of a strategy emphasizing fewer, bigger innovations aligned with changing consumer tastes. The Annie's SUPER! Mac Dill Pickle Mac & Cheese is sold exclusively online at major retailers and positioned as higher protein and higher fiber. General Mills' narrative projects $18.3 billion revenue and $1.8 billion earnings by 2029, assuming essentially flat yearly revenue and an earnings increase of about $1.9 billion from -$87.6 million today, with a $37.88 fair value implying 4% upside to its current price. Some of the lowest estimate analysts assume revenue falls to about US$17.6 billion by 2029 even as earnings rise toward US$1.8 billion, warning that higher media spend and complex, high protein innovation like these launches could backfire if sales momentum or pricing power fail to keep up.
GIS · Demand · Positive General Mills launched two new high-protein Progresso soups and two new Annie's mac and cheese varieties, expanding its product lineup to capture trend-driven consumer tastes.
General Mills Reaffirms FY27 Guidance Ahead of Barclays Conference
General Mills has reaffirmed its financial outlook for fiscal year 2027 and provided a business update ahead of management's presentation at the 2026 Barclays Global Consumer Staples Conference. The company continues to expect organic net sales to decline 1.5% to rise 0.5%, adjusted operating profit to fall 8% to 13%, and free cash flow conversion of about 95% of adjusted after-tax earnings of $3.00 to $3.20 per share, compared with the consensus estimate of $3.08 per share. Guided by its Accelerate strategy, General Mills is investing in initiatives spanning products, packaging, brand communication, omnichannel execution, and consumer value. The company will report fiscal first-quarter results before the market opens on Wednesday, September 23, with analysts expecting adjusted earnings of $0.71 per share on $4.33 billion in sales. Shares moved modestly higher into the open, poised to break a five-day losing streak.
GIS · Capital · Neutral Reaffirms FY27 guidance with adjusted EPS of $3.00-$3.20 vs consensus $3.08, but organic sales decline and operating profit fall expected.
Canada's Retaliatory Tariffs on U.S. Goods Take Effect
Canada's retaliatory tariffs on U.S. goods took effect at 12:01 a.m. on September 8, imposing duties of 15%, 25%, and 50% on about C$27.6 billion ($20 billion) of U.S. imports, including steel, aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics. The measures escalate an 18-month trade dispute following the collapse of negotiations between Ottawa and Washington, and come after the U.S. imposed new 50% duties on Canadian exports in August. U.S. companies to watch include Nucor, Steel Dynamics, Cleveland-Cliffs, Alcoa, Deere, Caterpillar, Whirlpool, Kraft Heinz, General Mills, Eaton, Emerson Electric, Honeywell, International Paper, Dow, LyondellBasell, General Motors, and Ford, among others. Bombardier faces added uncertainty after President Donald Trump threatened to block its aircraft from the U.S. market unless it manufactures in the U.S. The dispute could weigh on Canadian growth, exports, and business investment, with Canadian exports to the U.S. already falling 6.6% in July.
Consumer Staples Flat in August as Hormel, Tyson Fall; Estée Lauder Leads Gainers
The Consumer Staples Select Sector SPDR Fund ended August roughly flat, slipping about 0.08% for the month, a muted headline number that obscured double-digit swings in individual names. Hormel Foods and Tyson Foods led the sector's losses after cutting sales outlooks even as they posted profit beats, while Estée Lauder, General Mills, and Bunge Global posted double-digit gains on improving results and upgraded forecasts. Hormel fell about 12% after reporting fiscal third-quarter adjusted earnings of 37 cents per share, beating estimates by 2 cents, but organic net sales fell 2% as commodity turkey and bacon and a strategic exit from certain private-label snack-nut items weighed on the top line; the company raised its adjusted EPS outlook for fiscal 2026 to $1.45-$1.51 from $1.43-$1.51, while cutting its net sales forecast to $12.1 billion-$12.2 billion from $12.2 billion-$12.5 billion. Tyson dropped about 8% after its fiscal third-quarter adjusted EPS rose 9% to 99 cents, with sales roughly flat at $13.87 billion, as its beef segment posted an operating loss of $138 million on constrained cattle supplies and higher input costs, prompting the company to widen its full-year beef loss forecast. Estée Lauder rose about 17% after reporting fiscal fourth-quarter net sales up 6% to $3.63 billion and adjusted EPS of 39 cents, and raising its fiscal 2027 adjusted operating-margin outlook to 12.7%-13.5% from 12.5%-13.0%. General Mills gained about 14% on a fiscal 2027 outlook centered on improved organic net sales growth and at least $750 million in cost savings, while Bunge rose about 13% after raising its full-year adjusted EPS outlook to $9.25-$9.75 from $9.00-$9.50.
BG · Capital · Positive Bunge raised its full-year adjusted EPS outlook to $9.25-$9.75 from $9.00-$9.50.
EL · Capital · Positive Estée Lauder reported strong Q4 results and raised its fiscal 2027 adjusted operating-margin outlook.
GIS · Capital · Positive General Mills provided a fiscal 2027 outlook with improved organic net sales growth and cost savings.
HRL · Demand · Negative Hormel cut its net sales forecast due to weak organic sales and strategic exit from private-label snack-nuts.
TSN · Supply · Negative Tyson's beef segment posted an operating loss on constrained cattle supplies and higher input costs, widening its full-year beef loss forecast.
General Mills has closed the sale of its business in Brazil to 3corações, a divestiture that includes local brands such as Yoki and Kitano along with supply chain facilities in Pouso Alegre and Campo Novo do Parecis. The transaction marks further progress in the company's portfolio reshaping, which has turned over approximately one-third of its sales base since fiscal 2018 through acquisitions and divestitures. Among the divested businesses are La Salteña refrigerated dough in Argentina, European Yoplait, Helper and Suddenly Salad, European dough operations, and its Canadian and U.S. yogurt businesses, with the U.S. yogurt sale alone representing about $1.2 billion of fiscal 2025 sales. Simultaneously, General Mills added major pet-food assets including Blue Buffalo and Tyson Foods' pet-treats business.
GIS · Capital · Neutral General Mills closed the sale of its Brazil business to 3corações as part of ongoing portfolio reshaping via divestitures and acquisitions.
America's biggest consumer packaged goods companies are losing volume as shoppers trade down to private labels and insurgent brands, squeezing the $1tn-a-year industry from both sides. Kraft Heinz's North American sales volumes have contracted in nine of the past 10 years, and volumes were flat or falling at Conagra Brands, General Mills, JM Smucker, PepsiCo, and Colgate-Palmolive in the latest quarter. US bricks-and-mortar retailers sold 9.3bn fewer units of food and consumer-packaged goods in the past 12 months than five years before, while private-label share gained more than one percentage point to over a quarter of total sales. Kraft Heinz CEO Steve Cahillane is investing $700mn in legacy brands, including a Walt Disney partnership, rather than breaking up the $30bn group. Procter & Gamble's sales volume failed to grow in the latest quarter, and its chief executive Shailesh Jejurikar said it is much more challenging to get consumers' attention in today's fragmented media landscape.
General Mills to Seek Charter Changes on Officer Liability and Securities Claims
General Mills plans to ask shareholders on 29 September 2026 to approve charter changes that would expand officer exculpation and set federal courts as the exclusive forum for certain securities claims. The governance proposals focus on limiting monetary liability for some officer duty of care claims while preserving exposure for loyalty breaches, bad-faith conduct, improper personal benefit, knowing violations of law and derivative actions. The package also includes a federal forum selection clause for Securities Act of 1933 cases and a minor typographical fix. The vote comes as General Mills trades at US$39.20, with a 90 day share price return of 18.82% contrasting with a year to date share price decline of 14.26% and a 1 year total shareholder return decline of 16.13%.
GIS · Regulation · Neutral Governance proposals on officer liability and forum selection are procedural, with unclear immediate impact on operations or financials.
CEOs Pushed White House to Delay Ultra-Processed Food Definition
Food company executives intervened in recent weeks to persuade the Trump administration not to release a proposed definition of ultra-processed food, according to people familiar with the discussions. Chief executives and trade group representatives sent letters and called the White House, arguing that laying out the definition would open the industry to litigation, increase costs, and hurt business. The administration has been working on a definition expected to focus on whether a food includes certain cosmetic ingredients and ingredients not commonly used in home kitchens. Acting FDA Commissioner Kyle Diamantas said the administration has submitted for final review a proposed definition, but the white paper has not yet been cleared by the White House budget office. The definition is expected to include an exemption for foods that meet an already-established healthy criteria by the FDA, potentially sparing items like some yogurts and whole-grain breads.
Costco posts $70.5 billion in quarterly revenue while General Mills reports a full-year net loss
Costco Wholesale reported quarterly revenue of $70.5 billion for the period ended May 2026, up from $63.2 billion a year earlier, while General Mills posted a full-year net loss of $87.6 million for its fiscal year ended May 31, 2026, compared to net income of $2.3 billion in the prior year. Costco's net income for the quarter rose to $2.2 billion from $1.9 billion, and the company recently announced a planned increase to its annual membership fees alongside a new rollout of store entry card scanners. General Mills' revenue for the full fiscal year fell 5% to $18.4 billion, weighed by divestitures and nearly $3 billion in restructuring expenses, and the company is navigating a voluntary product recall of frozen dough while implementing a cost-savings plan. The contrasting results highlight Costco's consistent sales expansion driven by its membership model, while General Mills faces challenges from private-label competition and the divestiture of its yogurt business.
Cal-Maine Foods Seen as Takeover Target with Tyson Foods and General Mills as Potential Suitors
Cal-Maine Foods, the largest U.S. egg producer, is being viewed as a potential takeover target due to its strong balance sheet and low valuation despite historically low egg prices. The company trades at an EV/EBIT multiple of 9.1 times and boasts a free-cash-flow yield of 10.3 percent, with a net-debt-to-EBITDA ratio of negative 1.9 times indicating more cash than debt. Potential acquirers include Tyson Foods, which could add eggs to its beef, pork, and chicken portfolio in a horizontal consolidation, and General Mills, which could vertically integrate to secure egg supply for its breakfast cereals and baking mixes. A takeover price is estimated between 4.9 billion and 5.7 billion dollars, based on typical control premiums of 20 to 40 percent. With 89 percent free float and no controlling insider, a deal would likely be decided by institutional shareholders.
Walmart launches 40,000-acre regenerative agriculture program with General Mills and ADM
Walmart, General Mills, and ADM are collaborating on a new regenerative agriculture program covering 40,000 Midwest wheat acres. The initiative targets soil health, water quality, and carbon sequestration, and is designed as a model for broader industry change across food and retail supply chains. The program ties Walmart's shelf offerings to specific environmental outcomes, linking its retail scale to farm-level practices. For investors, this signals how the retailer is managing long-term supply reliability and environmental expectations simultaneously.
Climate Adaptation & Water › Precision-Ag Equipment & Autonomy ▲Demand
WMT · Supply · Positive Walmart is leading the program to improve long-term supply reliability and environmental outcomes, which strengthens its supply chain.
ADM · Demand · Positive ADM is a direct partner in the 40,000-acre regenerative agriculture program, which will likely increase demand for its agricultural services and products.
GIS · Demand · Positive General Mills is a direct partner in the program, which will likely increase demand for its sustainably sourced wheat and enhance its brand.
ADM Creates COO Role, Appoints Jeff Rowe, and Partners with General Mills and Walmart on Regenerative Agriculture
Archer-Daniels-Midland has created a new Executive Vice President and Chief Operating Officer role and appointed Jeff Rowe to the position, while also announcing a partnership with General Mills and Walmart to promote regenerative agriculture across 40,000 Midwest wheat acres. Rowe will oversee key operational and research and development functions across ADM. The stock, trading at $87.32, has returned 47.9% year to date and 60.2% over the past year. These moves highlight how ADM is organizing its operations and supply relationships, which may influence execution, risk profile, and positioning in agricultural and food supply chains.
Climate Adaptation & Water › Climate-Resilient Agriculture & Food Competition
ADM · Capital · Positive ADM creates COO role and appoints Jeff Rowe, which may improve operational execution and efficiency.
GIS · Demand · Positive General Mills partners with ADM and Walmart on regenerative agriculture, potentially enhancing supply chain sustainability and brand image.
WMT · Demand · Positive Walmart partners with ADM and General Mills on regenerative agriculture, supporting its sustainability goals and supply chain resilience.
General Mills recalls over 735,000 Pillsbury rolls sold at Walmart bakeries over possible glass contamination
General Mills has voluntarily recalled more than 735,000 Pillsbury bread rolls because they may contain glass fragments. The recall covers two frozen dough products baked and sold exclusively through Walmart in-store bakeries across 19 states. The first product, Pillsbury Bread Rolls Hard Roll Dough, involves 3,080 cases totaling approximately 554,400 rolls, while the second, Pillsbury Bread Rolls Kaiser Roll Dough, involves 1,260 cases totaling approximately 181,440 rolls. The FDA classified the recalls as Class II on July 13, meaning exposure could cause temporary or medically reversible health consequences. Consumers who purchased fresh rolls from affected Walmart bakeries are advised to contact the store or General Mills for more information.
General Mills faces headwinds from MAHA movement and shifting consumer demand
Zacks Investment Research has assigned General Mills a Zacks Rank #5 (Strong Sell), citing multiple headwinds. The 'Make America Healthy Again' movement, led by Health and Human Services Secretary Robert F. Kennedy Jr., is pressuring the company to remove artificial dyes from its U.S. products by 2027, which will require millions in research and development spending to find natural replacements. Additionally, General Mills is battling stagnant demand as value-seeking consumers shift to private-label brands, with Zacks Consensus Analyst Estimates projecting negative earnings growth through 2026 and flat growth into 2027. The stock is also underperforming the S&P 500 amid a strong bull market and faces stiff competition from Kraft Heinz, Conagra Brands, and Mondelez International.
General Mills, ADM, Walmart Partner to Accelerate Regenerative Agriculture Across 40,000 Midwest Wheat Acres
General Mills, ADM and Walmart have announced a strategic collaboration to accelerate regenerative agriculture across 40,000 Midwest wheat acres. The program focuses on key growing regions where General Mills sources wheat from ADM for products sold through Walmart and Sam's Club, with initial projects receiving technical assistance from American Farmland Trust and Ducks Unlimited. It builds on a 2023 commitment by General Mills and Walmart to advance regenerative agriculture across 600,000 shared acres by 2030, with programs already underway on more than 560,000 wheat acres in the U.S. ADM, which manages nearly 5 million regenerative acres globally, will facilitate on-the-ground support including financial incentives for practices like no-till and cover crops. The collaboration contributes to General Mills' goal of advancing regenerative agriculture on 1 million acres by 2030, Walmart's aim to protect or restore at least 50 million acres by 2030, and ADM's efforts to empower farmers on millions of acres.
Wall Street Is Sleeping on These 5 Quality Dividend Stocks
Smart investors are rotating out of AI and data center trades into quality dividend stocks trading at multi-year lows. General Mills yields 6.49% with 56 straight years of payments, while AT&T yields 5.42% at a fresh 52-week low. Elliott Investment Management's $4 billion stake in PepsiCo signals over 50% upside potential if the company executes its proposed strategic transformation. McDonald's approaches 50 years of dividend increases and yields 2.59%, and Unilever trades near its 52-week lows with a 3.65% yield. All five stocks are rated Buy by top Wall Street firms.
GIS · Capital · Positive Article highlights General Mills as a quality dividend stock with 6.49% yield and 56 years of payments, trading at multi-year lows, and rated Buy by top firms.
MCD · Capital · Positive Article highlights McDonald's as a quality dividend stock approaching 50 years of dividend increases with 2.59% yield, trading at multi-year lows, and rated Buy.
PEP · Capital · Positive Article highlights Elliott Investment Management's $4 billion stake in PepsiCo, signaling over 50% upside potential if strategic transformation is executed, and rated Buy.
T · Capital · Positive Article highlights AT&T as a quality dividend stock with 5.42% yield at a fresh 52-week low, and rated Buy by top firms.
UNLYD · Capital · Positive Article highlights Unilever as a quality dividend stock trading near 52-week lows with 3.65% yield, and rated Buy by top firms.
General Mills Takes $1.75 Billion Impairment, Swings to Surprise Annual Loss
General Mills reported a $1.75 billion goodwill and intangible impairment in the fourth quarter of fiscal 2026, turning its results into a net loss of $2,007.9 million for the quarter and a rare annual loss of $87.6 million for the full year, despite modestly higher quarterly sales of $4,609.6 million and full-year sales of $18.42 billion. The company affirmed its quarterly dividend of $0.61 per share and completed a multi-year buyback of more than 73 million shares, reducing the share count by about 12.85%, underscoring an ongoing commitment to cash returns even as the impairment-driven loss pressures its cost-savings-led investment narrative. Management's near-term focus remains on stabilizing sales and margins without over-relying on pricing, while the risk of weaker volumes and higher promotion needs could keep profitability under pressure. The impairment is largely an accounting charge and not a cash drain, but it may shift already cautious analyst expectations, with some projecting revenue falling to about $17.7 billion and earnings near $1.6 billion by 2029.
General Mills Fair Value Estimated at $37.88 After Impairment-Driven Loss
General Mills is estimated to be undervalued with a modeled fair value of $37.88 per share, slightly above its recent close of $36.33, following a fiscal fourth quarter and full year report that included a sizeable impairment-driven net loss alongside continued dividends and a completed multi-year buyback. The share price has declined 2.08% in one day and 3.81% over seven days, though it rose 9.63% over 30 days, while year-to-date it is down 20.54% and the one-year total shareholder return has fallen 25.02%. Analysts expect revenue to remain fairly flat over the next three years, with profit margins recovering from negative 0.5% to 10.0%, underpinning the fair value estimate. The valuation case hinges on margin repair, earnings rebuilding, and a reset of future earnings multiples, but could shift if cost savings are channeled into stronger brand spending or larger product launches gain traction.
AT&T Tops Retirement Stock Picks as Oversold Meets Undervalued
AT&T is ranked as the top retirement portfolio pick among three stocks that are both oversold and undervalued, according to an analysis by 24/7 Wall St. AT&T shares are down 25.8% over the past year with a weekly RSI of 35.17, a trailing P/E of 7x, a forward P/E of 9x, a dividend yield of 5.3%, and a beta of 0.42. The company reported Q1 2026 revenue of $31.51 billion, up 2.9%, and adjusted EPS of $0.57, up 11.8%, while reaffirming full-year adjusted EPS guidance of $2.25 to $2.35 and free cash flow of over $18 billion. General Mills placed second with a 6.49% dividend yield, a forward P/E of 12x, and a near-zero beta of negative 0.05, following a fiscal Q4 2026 adjusted EPS beat of 15.85%. Adobe ranked third due to its lack of a dividend and a beta of 1.43, despite a forward P/E of 9x and record Q2 FY2026 revenue of $6.62 billion.
General Mills’ 127-Year Dividend Streak Still Generates Current-Year Taxable Income
General Mills declared a quarterly dividend of $0.61 per share, payable August 3 to shareholders of record on July 10, continuing a 127-year uninterrupted dividend history. While the dividend may qualify for preferential tax treatment, the cash received still becomes taxable income in the current year, illustrating the tradeoff between high-yield stocks and those that return value through price appreciation or buybacks.
GIS · Capital · Neutral Dividend declared continues 127-year streak but is taxable income, with no material change in dividend policy or financial outlook.
Jim Cramer Highlights General Mills’ “Blowout Quarter”
Jim Cramer highlighted General Mills’ strong quarterly results and restructuring plan on his show, noting the stock rallied 8.5%. He called the company one of the most reliable stocks in the market, pointing to its 7.2% dividend yield. Cramer also commented on other food stocks like Hormel, McCormick, and Campbell’s, suggesting their high yields may reflect market concerns about potential dividend cuts.
Nike and General Mills Q4 results show stabilization but full recovery remains elusive
Nike and General Mills both reported fiscal fourth-quarter results that suggest their businesses are stabilizing, but neither turnaround is complete. Nike posted Q4 revenue of $10.97 billion, down 1% year over year, while adjusted net income of $1.07 billion or $0.20 per share beat expectations of $0.11. Gross margin expanded to 49.2%, and wholesale revenue rose 4%, though Nike Direct revenue declined 7%. General Mills reported Q4 sales of roughly $4.61 billion, up 1% year over year, and adjusted operating profit of $705 million or $0.95 per share, well above estimates of $0.82. Its North American retail segment sales declined 4%, an improvement from a 10% drop a year earlier, and adjusted gross margin expanded 150 basis points to 34.2%. Both stocks are trading near 52-week lows, with General Mills offering a 6% annual dividend yield and an 11X forward earnings multiple, while Nike trades under $50 a share. However, Nike still faces challenges in Greater China and its direct-to-consumer business, and General Mills continues to battle cautious consumer spending.
General Mills Shares Bottom, Seen as Turnaround Play with 6.5% Yield
General Mills shares appear to have bottomed in early 2026, trading below 10 times trailing earnings with a 6.5% dividend yield and improving cash flow. Fiscal fourth quarter 2026 adjusted earnings per share of 95 cents grew 27% year over year, surpassing consensus estimates by more than 1,500 basis points despite mixed segment results. A $3 billion cost-saving initiative targeting up to $750 million in savings and ongoing share buybacks are intended to support earnings and capital returns going forward. Organic sales were flat year over year, with price and mix offsetting volume declines, while North American Retail contracted 4%. The company forecasts fiscal 2027 adjusted earnings per share of $3.10 at the midpoint, aligned with consensus, and expects organic sales to be flattish to slightly down.
GIS · Capital · Positive Shares bottoming at low P/E, 6.5% yield, earnings beat, cost savings, buybacks, and aligned guidance all point to a financial/valuation turnaround.
General Mills, FactSet, MSC Industrial, UniFirst rise on earnings beats
Several companies posted gains after reporting quarterly earnings that exceeded analyst expectations. General Mills jumped 8.5% after fourth-quarter fiscal 2026 earnings of $0.95 per share beat the Zacks Consensus Estimate of $0.82. FactSet Research Systems rose 6.7% as third-quarter fiscal 2026 earnings of $4.53 per share topped the $4.44 estimate. MSC Industrial Direct gained 3.7% after third-quarter fiscal 2026 earnings of $1.43 per share surpassed the $1.28 estimate. UniFirst advanced 0.8% following third-quarter 2026 earnings of $2.17 per share, above the $1.93 estimate.
General Mills Jumps 9.9% After Earnings Beat, Sees Up to $3 Billion Savings
General Mills shares surged as much as 9.9% in New York trading, the biggest intraday gain since 2020, after the packaged-food company reported quarterly adjusted earnings and revenue that beat Bloomberg-compiled analyst estimates. The jump helped trim a year-to-date decline that had reached 25% through Tuesday's close. Management said consumers remain under pressure from rising prices and may keep leaning toward discounts, promotions, and more careful shopping habits, while CEO Jeff Harmening said the company is done cutting prices but will try to win consumers through product innovation, packaging changes, marketing, and trends tied to higher protein and fiber intake, including premium Cheerios with added protein. Organic sales in the North American retail business were flat for the quarter, better than expected, and the company guided for fiscal-year organic sales to range from up 0.5% to down 1.5%. General Mills also targets $3 billion in cost savings by fiscal 2030, which RBC Capital Markets' Nik Modi called prudent and achievable.
StockStory has identified three S&P 500 stocks it believes investors should steer clear of: General Mills, Kraft Heinz, and Ingersoll Rand. The firm cites shrinking unit sales and falling operating profits at General Mills, while Kraft Heinz faces declining sales and a 25.1 percentage point drop in operating margin. Ingersoll Rand is flagged for disappointing organic revenue, slowing demand growth of 3.1%, and a low 6.1% return on capital. StockStory suggests these companies are weighed down by poor execution and structural headwinds, and recommends investors look elsewhere.
General Mills launches Reese’s Puffs GloRilla tie-up and Honey Nut Cheerios Protein
General Mills is rolling out new cereal campaigns including a Reese’s Puffs collaboration with artist GloRilla and the launch of Honey Nut Cheerios Protein. The Reese’s Puffs project features a music remix and limited-edition cereal box, while Honey Nut Cheerios Protein is supported by a collectible ring campaign. These moves aim to keep the company’s cereal portfolio relevant with younger shoppers and defend shelf space amid strong competition. The campaigns come as General Mills reported a quarterly net loss of about US$2.0 billion, driven largely by US$1.75 billion of goodwill and intangible impairments, and guided to a tougher year for organic sales and profit.
GIS · Capital · Negative Reported a quarterly net loss of ~US$2.0 billion due to impairments and guided to a tougher year for organic sales and profit.
GIS · Demand · Neutral New cereal campaigns aim to boost relevance and defend shelf space, but impact is uncertain and offset by weak financial results.
General Mills plans $3 billion in cost cuts to fight consumer spending slump
General Mills announced a plan to cut $3 billion in costs over the next four years to return to profitable growth amid a consumer spending slump. The Cheerios maker will save approximately $2 billion by focusing on products and trends that resonate with consumers, while the remaining $1 billion comes from accelerating a previously announced restructuring program aimed at improving productivity. CEO Jeff Harmening said the cost-savings plan is critical to offset inflation, fund growth investments, and support stronger earnings, with $750 million in savings expected for fiscal year 2027. The company reported flat organic net sales for the fourth quarter and a 2% decline for the full year, as weaker consumer sentiment drove more shoppers to discount items. General Mills posted a $2.1 billion operating loss in its most recent quarter after investing in price cuts to attract cash-strapped consumers, and it now plans to increase the remarkability of its brands by adding in-demand attributes like protein.
GIS · Capital · Negative Company reports flat organic net sales, 2% full-year decline, and $2.1B operating loss; cost cuts are a response to weak performance.
General Mills declared a quarterly dividend of $0.61 per share, in line with the previous payout. The forward yield is 6.46%. The dividend is payable on August 3 to shareholders of record as of July 10, with the ex-dividend date also on July 10.
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