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General Mills, Inc. Stock Price: Quote, Forecast, Splits & News (GIS)

Perplexity Finance

Company Profile

General Mills, Inc. Price & Performance (GIS)

Stock Performance

Updated Apr 17, 8:00 PM UTC

General Mills, Inc.

$57.51USD

++$1.04 (+1.84%)

Open

$56.67

Year High

$75.90

P/E Ratio

12.6

Low

$56.45

Year Low

$55.15

Volume

3.37M

High

$57.79

Market Cap

$31.49B

Dividend Yield

4.17%

Latest News

Analysts Lower General Mills Price Targets Amid Weak Sales
Mar 19, 2025
General Mills faces continued pressure as multiple analysts have cut their price targets, with Jefferies reducing its target to $59. The company’s recent quarterly sales missed forecasts, and guidance for 2025 was trimmed. Sluggish demand for snacks and pet food, along with inventory reductions, are fueling cautious investor sentiment.123
Investor Sentiment Mixed as General Mills Stock Lags Sector
Apr 17, 2025
General Mills shares have dropped over 18% in the past six months, underperforming both the consumer staples sector and the broader market. Analysts remain divided, with hold ratings dominating and only modest upside seen. Ongoing challenges include private-label competition and shifting consumer preferences amid persistent grocery inflation.453
General Mills Implements Cost-Cutting After Third-Quarter Miss
Apr 11, 2025
After reporting a 5% drop in third-quarter sales, General Mills has launched new cost-saving initiatives for fiscal 2026. The company is responding to softer demand and retailer inventory reductions with increased investment in brand innovation and efficiency measures, aiming to stabilize profits despite a projected 7–8% annual earnings decline.627

What's Happening

Peers

Earnings

Report Date

Mar 19, 2025

Reported Revenue

4.8B

Avg 1d Change

2.6%

Report Period

Q3 2025

Reported EPS

1.00

Implied Move 1d

4.32%

Transcript

10m 4s

Thank you, Julian, and good morning. Thanks to everyone for joining us today for our Q and A session on our third quarter fiscal twenty twenty five results. I hope you all had time to review our press release, listen to our prepared remarks, and view our presentation materials. Were made available this morning on our Investor Relations website. Please note that in our Q and A session, we may make forward looking statements that are based on management's current views and assumptions. Please refer to this morning's press release for factors that could impact forward looking statements, and for reconciliations of non GAAP information which may be discussed on today's call. I'm here with Jeff Harmening, our Chairman and CEO and Kofi Bruce, our CFO. So let's go ahead and get to the first question. Julianne, can you please get us started?

10m 51s

Absolutely. Our first question comes from Andrew Lazar from Barclays. Please go ahead. Your line is open.

11m 2s

Great. Thanks so much. Good morning, everybody. Good morning. Good morning. Jeff, you mentioned in the prepared remarks the sharp focus right on accelerating organic growth. As you move into fiscal twenty twenty six. You highlight the at least 5% savings, the additional $100,000,000 in cost saves on top of this. And I think you've said previously you plan to reinvest the fifty third week as well. So I guess my question is with the sizable step up in investment planned for fiscal 4Q, how do we think about the incremental investment that you think is needed for fiscal twenty twenty six beyond what you're already doing in the fourth quarter this year? And in thinking about those investments, I guess what does the balance of spend look like or the mix between work that still needs to be done on price points specifically versus let's say innovation in store activity and media expense? Thanks so much.

11m 53s

Yeah. Thank you, Andrew. Really, really fair question. Let me give you a couple pieces of context and then answer your question more, like, because I think the context is important. The first is that coming into this year, we thought the consumer environment would improve as the year got on. And that hasn't really been the case. And consumers are still seeking value as much or more than they had when our year began. And if you look at the most recent confidence indices, it would indicate the consumer confidence is actually below where it was. Three months ago and about where it was in 02/2008. And so the situation we find ourselves in is different than we thought the one coming in the year. And so consumers are seeking value. We see that in the categories they're pursuing, and in many, many ways. Other thing I would tell you as we think about our investment going forward, we kind of looked at what's worked for us over the last year. And when you look at Blue Buffalo, we were having a similar conversation a year ago, and we sharpened price points. We got really focused on the things that mattered.

12m 47s

We improved our marketing, new products. And we've gotten a place where we're competing effectively on Blue Buffalo. The same would be the case on Pillsbury. So we talked about last quarter what we needed to do, and yes, we we sharpened our focus there on value, but also we have good new products there, and our and our marketing is really good. And the focus on value actually allowed our marketing to work better. The same would be true of Totino's. Again, we've got the they got the value in line, and our marketing is really good on And so as we look at those things, how we're competing with Haagen Dazs globally, we know that getting the value in the right zone and that adding on top of that really good innovation and and more improved marketing is the way to go. So that's the context. As you look at our fiscal fourth quarter, obviously, we're stepping up investment. Investing some more in pricing, particularly in the fruit snacks area where consumers are really looking for value. That's very clear. But, also, we're stepping up our marketing double digits. And, you know, we're doing that on some of our biggest brands.

13m 47s

We think our marketing is really good. You'll see that on Blue Buffalo. You'll see that on Pillsbury. You'll see that in cereal. And so as we so that, you know, as we look at next year, it'll be a year of reinvestment for us. It'll be a combination of getting our value right. The place where you'll you'll see that the most is in is in snacking, particularly fruit snacks. And and no need to wait until fiscal twenty six. So we started in the fourth quarter. The same with so that that's where the as we look at pricing for next year. The the other is that on pricing, we're lapping a lot of pricing we've done in the back half this year into the first half of next year. But in terms of kind of incremental activity we need to take on value, that Fruit Snacks is the incremental value. Beyond that, though, we're gonna improve and we're gonna improve our marketing on our core as done on some of the categories I've told you more broadly. We're gonna increase our marketing spend, and we have some really good new products coming in the first half of next year.

14m 43s

In fact, part of the investment we're making in the fourth quarter is the r and d resources to the admin necessary to to get those products to market. As well as the supply chain. And so what we're looking at next year is to reinvest our savings, to reinvest in the fifty third week as well as these efficiencies to get back to growth. That is the job to do. The rest of our p and l looks great, and it'll look even better. Once we get back to growth. And and my expectation is that our competitiveness will improve starting in the fourth quarter with the actions we've taken, and we'll look to carry that over into the first quarter, second quarter, third and fourth. Of next year.

15m 22s

Got it.

15m 26s

Our next question comes from Ken Goldman from JPMorgan. Please go ahead. Your line is open.

15m 31s

Hi, thank you. Just to build on Andrew's question, I was hoping we could run through a quick very broad exercise of kind of the tailwinds and headwinds into next year. Just on a on a general basis, not looking at any numbers. And I'm wondering if I'm missing anything here. So as I think about the tailwinds, you've talked about a little more trade, better marketing in general that should help volume. Innovation, you you know, your tone is great there. Maybe you have some easier laps from some of the trade destocks. Obviously, you have a little more maybe and you have those new cost efficiencies you talked about? And then as I think about the headwind side, excuse me, obviously a little more trade than what you initially expected, although you talked about some easier laps there. Some investments in brand communication, you know, maybe a bit more slotting, then you have tariffs, stock based comp, Yoplait dilution, I'm running through these very quickly, obviously, then I'm putting you on spot. But is there anything obvious that I'm missing there? Because honestly, you talked about how your job is to get back to growth. It seems that those headwinds are a little stronger than the tailwinds and that's kind of what we're hearing from the buy side today.

16m 34s

So I really wanted to push a little bit on that if I could. Thank you. Okay. And I I think, broadly, you've actually got almost elements we want you to be tracking. I think you'll play obviously we don't know exactly when that's going to close. That will be a significant five point headwind that we want to make sure you have visibility to. We flagged that at CAGNY. It's starting five point headwind on on on profit.

17m 1s

I think you've got kind of the texture of the rest of this. There'll be some annualization impact from the investment investments we've made this year that are important to factor in. And we are building flexibility just in terms of our posture for next year for additional investment I think we're very committed to getting the job done on improving growth trends both in the categories and our own competitiveness. So to the extent that we go into next year, want to make sure we have flexibility to do that. So I think we'll obviously give you a little bit more perspective where the commercial investments are going as we step into our Q4 and give guidance. I think you have the the the fence posts about right, though.

17m 44s

Great. Thanks, Kofi.

17m 49s

Our next question comes from David Palmer from Evercore ISI. Please go ahead. Your line is open.

17m 56s

Thanks and thanks for those comments on innovation. I wanted to follow-up on that. I've seen some data that in general in the food space there's been less innovation that the innovation in the category in general packaged food has not really recovered to pre COVID levels. It's been slow to essentially ramp back up You're certainly ramping up innovation heading into fiscal twenty twenty six. I wonder if you could sort of characterize for us the level of innovation activity into 2026, and how it will compare to 2025? And and maybe you sound optimistic about it. Like what are the ways you're changing the types of innovation, the messages that you think will work perhaps better per activity and marketing dollar? Next year?

18m 46s

Yes, David. Good questions. I will give you I will give you as much context as I can without giving away exactly what we're gonna be doing. The first, you're you're you're right in that new product innovation kind of as a percentage of sales, still lagging where it was pre pandemic. That's also true for us, although we're up we are up significantly. In our new product innovation as a percentage of sales this year than we were than we were last year. So we are up, still below where we were pre pandemic. I hope that's clear. It's clear in my mind when I say it. I hope it's clear to those listening on the line.

19m 18s

As we look at we look at next year, think there are two things that that we need to do. The the first is that the types of innovation we have, we probably need to support more robustly. And so we've had some good new product innovation like Cheerios Protein, We just talked about Pitmaster and what we've done with Old El Paso and soup. And we've got stick bars coming in in Asia and in in Europe that are really good, grown Nature Valley granola protein is off to an amazing start. We so we need to we've got some good new product innovation. I think we could probably do a better job even just supporting those a little bit more, which which we intend to do. And then I think the theme for next year is probably gonna be fig fewer but but bigger. And we have we have a few big innovations that we'll talk about in June that would love to talk about now, but we're not going to, that are gonna come in the first half of next year in addition to kind of some of the things we already talked about. And so fewer and bigger, I guess, would be, and then making sure we support well the the good ideas that we we have, and we have some good ideas.

20m 28s

Thanks. I'll pass it on.

20m 32s

Our next question comes from Michael Lavery from Piper Sandler. Please go ahead. Your line is open.

20m 39s

Thank you. Good morning. Just looking at you called out value and price gaps quite a bit and obviously that's a focus.

20m 47s

Looking at dough and Tatinos where you've you know, kinda had the the test cases already It's maybe a little harder on Totino's to see how much it's coming through because it looks like it picked up kind of later in the quarter or or, you know, in tough 4Q, but Joe had sales growth up, I think, around 4% with volumes up around eight I guess maybe in those categories, how do you how did you or, you know, do you understand or figure out what the right price adjustments are? And then, really, how does that translate more broadly?

21m 23s

I guess the the kind of endpoint of the question is, how do you know that as you've got your sounds like you're 26 plans are broadly set, How do you know the price investments you're anticipating are enough And how do you think about just you said maybe you can be nimble there. That part of how you you plan for it as well?

21m 43s

Yeah. So you mentioned [indiscernible] the call, which were were refrigerated dough and Totino's. You also had Blue Buffalo? Into that mix of things that we have executed well and and opened some price points and but also improved our marketing. And, you know, that's the that's the other piece of it is that you know, getting the marketing right, whether it's new product and marketing behind that or marketing behind the core.

22m 9s

Which is also important. And so as we look at that, the new piece you know, same price.

22m 15s

We've got we've got great brands. And so when we talk about that value piece, really, it's kinda getting in the zone. Cliff. And and price differentials and that sort of thing. So it doesn't mean we have to price equally to everybody. Else. We just have to get into a zone in which our pricing is gonna work. And then we have to consider all the other elements of the of our marketing mix, and we use the the, remarkable experience framework to do that. And we kinda go category by category to say, what are the thing where are we where are we good? Where are we missing elements? And then we go by that. We use that throughout the entire company. And so I'm confident as we head into the fourth quarter and then into fiscal twenty six, we have a much better handle category by category what jobs need to be done. And in some cases, that value. In some cases, that's marketing on the core. In some cases, that's innovation. And Bruce tax is probably three of those things. And so the so that's the way we look at it. And we have confidence because we we've done it several times now with some big businesses.

23m 13s

Blue Buffalo, Totino's, and Pillsbury, they're all billion dollar plus brands. And we've done it effectively there. We just need to make sure we what we the job to do now is expand that to the rest of our portfolio, which we have been working on.

23m 26s

Which will start to manifest itself in Q4. In fact, I would expect our cereal business to come back in Q4 and I would expect our soup business as well show improvement in Q4 as we get the marketing in a good place. And as we the value is also in a good place.

23m 45s

That's great color. Would would it be fair to assume that that evaluation exercise that you talked about have you completed that across the company, or is there still some brands or categories maybe under review, so to speak?

23m 59s

We've, we have con we've completed that across the across the company and which has led to some of the improvements that you've seen so far. Some things take longer than others, and that's you know, the workshop again has already begun, and we'll you'll see that in the fourth quarter and will bleed into next year. So you'll see that in next year as well. But also I would also say it's an always on kind of capability because context changes, and the environment around us changes. And so one of the things we yes. I feel good that we kinda understand brand by brand what we need to do. But I also know that, you know, that the context changes, and we have to be agile enough to change with the world around us. And so I also know that.

24m 41s

That that's helpful. Thank you.

24m 45s

Next question comes from Alexia Howard from Bernstein. Please go ahead. Your line is open. Good morning, everyone. Can I start with come back to snacks? As I think about previous economic slowdowns like the financial crisis, and so on, snacks seem to do okay as a a sort of feel good treat at a low ticket price, and they didn't seem to be behaving in previous cycles with this value seeking discretionary problem that we seem to have today. So what's different this time around? And and could this accelerated uptake of GLP one drugs, for example, or increasing consumer concerns about the healthiness of indulgent snacks. Be another part of the issue here. I'm just wondering what data you're looking at to really get at the root of what's driving the category weakness. Thank you, and I'll pass it on.

25m 40s

Yeah. Thanks, Alexia. It's Let me give you a couple of thoughts. And as we look across kind of salty snacks, grain snacks and fruit snacks kind of quarter on quarter, there's about a negative gap on the category between what was happening before and what is happening now. And and our view is that a lot of that has to do consumer confidence. I mean, GLP-one uses increasing. It's about 10% of the adult population now, about 5% or so used for for weight loss, which is up significantly from the year before, but it didn't change that much quarter to quarter. And And we've also seen the same kind of activity in dog treats. And to my knowledge, there is not GLP-1s for dog treats. And so I don't think that even though we take the GLP-one kind of trend seriously. And as you see, we have a lot of protein coming in our new products. Macronutrients and fiber are going be important in portion size and lower sugar and all that. That's really not what we see in this environment. As to why, you know, as to why we see the the slowdown, you're right. In past recessions, like in 02/2008, we didn't see this.

26m 50s

Our view would be is that food at home is now elevated. Vis a vis what it was in 02/2008. And so it's elevated vis a vis what it was in pre pandemic. And so pre pandemic food at home consumption was about 83% of occasions. It's now 87% and has been 87% for a long time. And so what has changed is that in prior periods like we're experiencing now with consumer confidence, we had a lower percentage of people eating at home, and that increased.

27m 22s

As they got more anxious. That level is already increased. And so that really hasn't changed much. And so our belief is that consumers have become much more value conscious, and that not only determines what happens in category, but also have what happens in the rest of the store. So if you look at the rest of the grocery store, you would see that things that are staples are the ones that are growing faster and things that are more discretionary. So staples like baking staples, for example, and some of the items on the perimeter, those are growing faster because they're produce more value. And the same would be true of why restaurant occasions are down slightly. So we think it's much more about value now, and that's the the biggest difference is the eating occasions versus what we saw in the past recessions.

28m 12s

Thank you very much. I'll pass it on.

28m 14s

Thanks.

28m 15s

Our next question comes from Peter Galbo from Bank of America. Please go ahead. Your line is open.

28m 22s

Hey, Jeff, Kofi, good morning, Good morning.

28m 27s

Jeff, just a couple of questions if we can dig in a little bit more on the Snacks business. The first would just be around Fruit Snacks. I'm assuming when you're talking about kind of the value piece it, you're talking more moths relative to Gushers. I think you had actually expanded Gushers capacity about a year ago. So just wanted to clarify on that. And then the second piece is just if you can expand a bit more on the remediation plans, I guess, in snack bars. You have a competitor who's was off shelf and is now back on shelf. And maybe salty as well, just maybe in the same level of detail that you provided around fruit snacks would super helpful. Thanks very much.

29m 7s

Yeah. So, let me start with, yeah. Let me start with with Fruit Snacks a little bit. You're right. I mean, Gushers capacity came back up in Q2 and we feel good about the of that business. When look at the category, the first national category is down, and, you know, part of that is part of that discretionary, which we talked about. But, you know, we haven't distinguished ourselves on the share front either. And and there are a couple big play couple of our big retailers introduced, you know, private label during that period. And so there's no question that the job to do on fruit snacks is a is one of making sure our value is in the range, but also then getting back to innovation. And we talked a little bit about Harry Potter fruit snacks, what we're doing there, as well as marketing on the core. And so I would like what we have to do with fruit snacks a little to what we had to do with a couple items on on Blue Buffalo, where on Blue Buffalo, a year ago, we our pricing was good on life protection for formula as it probably is on Gushers, but all we had to do is market it better.

30m 5s

We started doing that, that was the job to do. That's probably Gushers. When you come to some other items, it's probably, wet pet food and and treats where we had to improve the marketing, which we did, and we had to improve the price points, which we did. And it took a little bit longer, but we eventually got back to where we needed to go. And so that's kinda why I I think that's the corollary to to Fruit Snacks if you if you would. On the on VARs, know, bars was a tough quarter because we had a competitor who was off shelf, you know, a year ago. I feel good about our our VARs business, some of the innovation we have coming on VARs. We didn't mention cereal protein bars, don't think on this call, but it's it's coming up. And so we feel good about that. Nature Valley, the marketing is good on Nature Valley. And so our bars business, I would look to rebound probably more quickly even than snacks. But fundamentally, we're in a decent place on on that.

31m 1s

Thanks, Jeff. And just salty, if anything there?

31m 5s

Yes. You know, on salty snacks, there there really probably is a value play, although, you know, salty is a relatively small part of our portfolio relative to to Fruit Snacks and Nature Valley. But I, you know, I I think on that one, you know, value is certainly true. But I would also say, you know, it's very clear that consumers are looking for bold flavors. And so our ability to introduce some new products with some bolder flavors is also going part of our success in salty snacks.

31m 33s

Great. Thanks very much. I'll pass it off.

31m 37s

Our next question comes from John Baumgartner from Mizuho Securities.

31m 44s

Good morning. Thanks for the question.

31m 46s

Just wanted to come back to the consumer and this interaction between value seeking and Mills' mention of of functional ingredients and functional innovation set against the broader focus on, know, RFK and ingredients more broadly. How do you assess, Jeff, the willingness and ability for consumers to pay up for healthier ingredients and and better quality? I think in the past, the ability to extract premium pricing for premium ingredients, that that capacity hasn't always been as clear.

32m 13s

Relative to being just sort of table stakes to remain competitive. You see it from changing on that front in terms of pricing power and premium mix at this point? Consumers are still getting you know, value comes in in a lot of different ways. Part of that is part of that is pricing, but, obviously, the benefit part is the also important. We see that playing out in proteins. We highlighted a lot of protein innovation we have coming now, whether that's that's protein or progressive protein, which is doing very well. And so you'll you'll see that. And the the key for us is really we're we're seeing a lot of a lot of value players, but we're seeing some things at the high end as well. So it's kind of bifurcating. And for us, value doesn't as I I mentioned earlier, I'm gonna repeat myself. But value doesn't mean getting, you know, raised to the bottom on on pricing or getting to the same place to private label. Just to making sure we have the the gaps correct. And after a period of kinda record inflation, for three years, things can take a toll. And so it really is about getting the value right.

33m 18s

And beyond that, it really is about talking about the the benefits of our products. In some cases, that's functional benefits like protein.

33m 26s

In other places like like Pillsbury biscuits, it's about how flaky they are. When it comes to Betty Crocker, maybe how chocolate it chocolatey they are. So so it really depends brand by brand the benefits they're looking for. Yes. Some functional health, but it's food. People really like stuff that tastes good. And and to the extent like in Cheerios protein, we can make it taste good, and it has a functional benefit. That's that's an even bigger win.

33m 52s

Okay. Thank you.

33m 55s

Our next question comes from Chris Carey from Wells Fargo.

34m 3s

Hi, everyone. So one slight clarification and then a and then a bigger picture question. Just on on the clarification, with the savings targets for next year, is there a message today that the savings targets between and the incremental $100,000,000 are there to be you know, fully reinvested back into the business, or is the message today simply we're you know, putting forth strong savings such to give us the ability to invest as we see fit, but the plans are are still developing or something of the sort. So that's just a kind of clarification. And then the bigger, the bigger picture question is, you know, if I look at your category growth rates, you know, the categories in which you compete, they're actually growing.

34m 53s

Is which is really positive. Right? Because that means if you can close category gaps, you're back to growth. When you assess why your portfolio is not growing in line with category? What are what are the major, you know, diagnoses? Is it is it value, the the the innovation agenda, the marketing messaging, because I think we all think, oh, this you know, value is the is the is the key here. You know, invest in price and and trade, and that'll that'll drive the the improvement. But when when you set the portfolio about why there's that relevant performance, what are what are the buckets that are standing out the most to you? So thanks for those.

35m 32s

Yeah. Let me let me take the let me take the second part of your question first. And then I'll pass it over to Goby to take the first part of your question second. The on the category growth, make a really important point.

35m 44s

Which is that our categories are growing, and they're growing about 1%. And that's that's below the kinda two to three we think will happen. As we look into the future. And the biggest delta really the the delta is price mix. And so as we look at volumes, they're roughly in line with what we had expect and what we could expect for 2% to 3% top line growth. Except that there's not a lot of there's not much mix in this environment, which given what we said about the consumer, think kind of kinda lines up. And so our categories are growing. Because of that, the most important job we have to do is to get back to being competitive. Which is, you know, what we will look to largely do in the fourth quarter. We have lots of areas that are competitive now. If I look at If I look at foodservice, if I look at Haagen Dazs internationally, if I if I look at Blue Buffalo or what we've done with Pillsbury or Tortino's, there are places where where our market shares are increasingly good. And the job for us to do is to get back to that more broadly.

36m 43s

Starting with volume share first, ultimately, The ultimate arbiter is dollar share, but but volume share first. As we're getting our value realigned. So that's the that's the job to do. And then, you know, get to get back to algorithm, then it takes a little bit of price mix on top of that, which we're not expecting in the near term, which we're pretty will come back eventually. And then so that is the that's the most important thing that we need that we need to do. I'll probably turn it over to to Kofi to talk a little bit more about the reinvestment profile and what we're expecting there.

37m 17s

And just just kinda picking up on where Jeff left off, I I think to the extent that we see the path ahead, next year really focused on driving improved growth and competitiveness, The purpose of the $100,000,000 plus additional cost savings, the net above inflation is to free up resources to reinvest for growth. Right? So the efficiency is there.

37m 43s

To drive growth.

37m 45s

We're not trying to drive specific improvements in margin. Obviously, to the extent we have additional flexibility above that $100,000,000 you can expect our dial to be tilted probably towards reinvestment back into the business. We'll talk more about specifically where and the nature of that investment a little bit more detail obviously as we go into our Q4 and give guidance for the next year.

38m 9s

Kofi, let me come back to the second part of Chris' question, which I think I forgot the first time around. But the on being competitive is not only about price. Mean, we need to get the pricing back in the zone, but it's it's value holistically. And, you know, as a CPG company, the recipe for success is relatively simple, even if it's difficult to execute. Which is you need really good marketing on your core. You need good new product innovation. And you need the the the the value to kind be in the zone where your marketing can work. And we know this, been true for decades, and we've proven it again on the categories that I've talked about earlier, and we're we're gonna start to prove it on some other areas as well. And I think you'll see that in cereal in the fourth quarter where we've got good value, but we also have a double digit increase in media. You'll see it on soup where we have good new products that we're gonna that we're gonna market. And so yes, we need to get the the the pricing roughly in line, but it it is not only about that, and it can't only be about that.

39m 12s

We've got we've got the best brands in our categories. And so it really is about marketing them effectively, which is marketing the core as well as new product innovation, and we'll look dial up both as we look at the year ahead. Starting in Q4.

39m 27s

Thanks, guys. Really helpful. You bet.

39m 31s

Our next question comes from Leah Jordan from Goldman Sachs. Please go ahead. Your line is open. Good morning. Thank you for taking my question.

39m 41s

I just wanted to go back to cereal. I know that's been a big area of concern for investors recently. And with the mid single digit decline in U. S. Retail in quarter. Just curious if you could provide more detail on that, how it compared to your internal expectations. And then going back to what gives you the confidence to driving the improvement in the fourth quarter? And really just how are you thinking about the durability of the category longer term? Thank you.

40m 7s

Yeah. As we as we look at the the third quarter, I see how deep go on this. As we look at the third quarter in serial, I mean, it it was pretty close to what our expectations were in terms of what our reported net sales were. We knew we had a little bit of inventory up from the second quarter. We talked about timing and that related to a few categories. On our second quarter earnings call. Cereal was certainly one of those. And besides that, we did have a competitor who was off shelf in the third quarter of the year. And and we had a little bit less media and merchandising. So cereal look, our cereal performance wasn't great in the third quarter, but it was about what we expected. The reason why I'm confident that it will get better in the fourth quarter is that we have an increase in Media. We don't have the overhang from from the inventory. And and our merchandising is good. We've got a we've got a really good promotion in the fourth quarter. And so we have all the things lined up, kind like we did in the second quarter.

41m 6s

We had a pretty good second quarter cereal. Well, I think we'll have a good fourth quarter on cereal. And the key to longer term is honestly is giving consumers more of what they want. And so as we look at Cheerios protein, clearly what they want, we want ghost cereal, which is done which has done well. Our our Nature Valley granola protein has also done well. And so it really is giving consumers more of what they want. All those things happen to be protein, but you know, lucky charms are still magically delicious, and, people want that as well. I Cinnamon Toast Crunch is still, in our view, the best tasting cereal in the category, and people want that as well. And so the the key to our growth is is as it always has been, giving consumers what they want. In some cases, that's functional benefits like protein. Other times, it's great taste. And if we can get the two together, that's when we usually win the the the most.

42m 1s

Our next question will come from Max Gumcourt from BNP Paribas. Please go ahead. Your line is open.

42m 8s

Hey, thanks for the question. With regard to the portion of the retailer inventory headwinds in North America Retail and Pet, Can you provide a bit more color on what drove it? Is this an wide phenomenon? Or is it specific to some of the categories you compete in or your products specifically? And then what's informing the view that it won't be any material changes in retailer inventory levels in the fourth quarter? Thanks very much.

42m 36s

Well, well, first of all, and and, Pat, it was it was across some of our biggest retailers. And pet inventory through the six years or so that we've owned this business, has always been more volatile. Than the rest of our business. I suspect it will be a bit because I think because of the ecommerce nature of the business. And so there's a five point drag on pet this quarter from retail inventory. A lot of that was dry pet food, which is which is why you just saw the results in dry pet food. Especially dry dog food the way that you did. Our inventory levels weren't high before. They're even lower now. For the year, our inventory is about our retailers about flat to where it was at the beginning of the year. And so that's that's what gives us the confidence that that, you know, we won't have another drawdown in inventory in the rest of the the rest of the year. Well as that's an inventory trend an industry trend or just us, I'll let everybody else talk about what their trends are. I I just know what ours are.

43m 38s

Okay. Julianne, think we're gonna given that we have kinda hit the past the time allotted here, think we'll we'll go ahead and wrap up. Thanks everyone for the attention and the time this morning. We're available all day for follow ups as usual, and so look forward to connecting here in the next few days, and we'll be back to discuss Q4 when we get to June. Thanks so much.

44m 1s

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Key Insights

GIS is prioritizing accelerated organic growth for fiscal 2026, with a focus on value, increased marketing (double-digit spend increases), and innovation, particularly in snacking and core brands; significant investments are already being made in Q4 of fiscal 2025.
The company is targeting at least $100 million in additional cost savings (on top of previously announced savings), with the intent to reinvest these efficiencies and the benefit from the 53rd week back into the business to drive growth and competitiveness.
GIS acknowledges ongoing consumer value-seeking behavior, with confidence indices at low levels; the company is responding by sharpening price points, especially in fruit snacks, and supporting fewer but bigger innovations with robust marketing.
Category growth remains positive (~1%), but GIS underperformed due to price/mix headwinds; management believes closing value gaps, improving marketing, and supporting innovation will restore competitiveness, with expected improvements in cereal and soup starting in Q4.
Retailer inventory headwinds, particularly in pet food, impacted results but are expected to stabilize in Q4; management remains confident in the durability of core categories and plans to provide more detailed guidance for fiscal 2026 during the next earnings update.

Recent Transcripts

Company prepares for FY26 with focus on organic growth and strategic investments.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$18B	$18B	$19B	$20B	$20B
Cost of Revenue	$11B	$12B	$13B	$14B	$13B
Gross Profit	$6.1B	$6.4B	$6.4B	$6.5B	$6.9B
Gross Profit %	35%	36%	34%	33%	35%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$18B

$19B

$20B

Cost of Revenue

$11B

$12B

$13B

$14B

$13B

Gross Profit

$6.1B

$6.4B

$6.5B

$6.9B

Gross Profit %

35%

36%

34%

33%

35%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$2.2B	$2.3B	$2.7B	$2.6B	$2.5B
Dep. & Amort.	$595M	$601M	$570M	$547M	$553M
Def. Tax	-$30M	$119M	$62M	-$22M	-$49M
Stock Comp.	$95M	$90M	$99M	$112M	$95M
Chg. in WC	$794M	-$156M	$277M	-$49M	$11M

2020

2021

2022

2023

2024

Net Income

$2.2B

$2.3B

$2.7B

$2.6B

$2.5B

Dep. & Amort.

$595M

$601M

$570M

$547M

$553M

Def. Tax

-$30M

$119M

$62M

-$22M

-$49M

Stock Comp.

$95M

$90M

$99M

$112M

$95M

Chg. in WC

$794M

-$156M

$277M

-$49M

$11M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$1.7B	$1.5B	$569M	$586M	$418M
ST Investments	$0	$360M	$250M	$117M	$0
Cash & ST Inv.	$1.7B	$1.9B	$819M	$703M	$418M
Receivables	$1.8B	$1.8B	$2B	$2B	$1.9B
Inventory	$1.4B	$1.8B	$1.9B	$2.2B	$1.9B

2020

2021

2022

2023

2024

Cash

$1.7B

$1.5B

$569M

$586M

$418M

ST Investments

$360M

$250M

$117M

Cash & ST Inv.

$1.7B

$1.9B

$819M

$703M

$418M

Receivables

$1.8B

$2B

$1.9B

Inventory

$1.4B

$1.8B

$1.9B

$2.2B

$1.9B

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Mar 19, 2025

Reported Revenue

4.8B

Avg 1d Change

2.6%

Report Period

Q3 2025

Reported EPS

1.00

Implied Move 1d

4.32%

Transcript

10m 4s

10m 51s

Absolutely. Our first question comes from Andrew Lazar from Barclays. Please go ahead. Your line is open.

11m 2s

11m 53s

12m 47s

13m 47s

14m 43s

15m 22s

Got it.

15m 26s

Our next question comes from Ken Goldman from JPMorgan. Please go ahead. Your line is open.

15m 31s

16m 34s

17m 1s

17m 44s

Great. Thanks, Kofi.

17m 49s

Our next question comes from David Palmer from Evercore ISI. Please go ahead. Your line is open.

17m 56s

18m 46s

19m 18s

20m 28s

Thanks. I'll pass it on.

20m 32s

Our next question comes from Michael Lavery from Piper Sandler. Please go ahead. Your line is open.

20m 39s

Thank you. Good morning. Just looking at you called out value and price gaps quite a bit and obviously that's a focus.

20m 47s

21m 23s

21m 43s

22m 9s

Which is also important. And so as we look at that, the new piece you know, same price.

22m 15s

23m 13s

23m 26s

23m 45s

23m 59s

24m 41s

That that's helpful. Thank you.

24m 45s

25m 40s

26m 50s

27m 22s

28m 12s

Thank you very much. I'll pass it on.

28m 14s

Thanks.

28m 15s

Our next question comes from Peter Galbo from Bank of America. Please go ahead. Your line is open.

28m 22s

Hey, Jeff, Kofi, good morning, Good morning.

28m 27s

29m 7s

30m 5s

31m 1s

Thanks, Jeff. And just salty, if anything there?

31m 5s

31m 33s

Great. Thanks very much. I'll pass it off.

31m 37s

Our next question comes from John Baumgartner from Mizuho Securities.

31m 44s

Good morning. Thanks for the question.

31m 46s

32m 13s

33m 18s

And beyond that, it really is about talking about the the benefits of our products. In some cases, that's functional benefits like protein.

33m 26s

33m 52s

Okay. Thank you.

33m 55s

Our next question comes from Chris Carey from Wells Fargo.

34m 3s

34m 53s

35m 32s

35m 44s

36m 43s

37m 17s

37m 43s

To drive growth.

37m 45s

38m 9s

39m 12s

39m 27s

Thanks, guys. Really helpful. You bet.

39m 31s

Our next question comes from Leah Jordan from Goldman Sachs. Please go ahead. Your line is open. Good morning. Thank you for taking my question.

39m 41s

40m 7s

41m 6s

42m 1s

Our next question will come from Max Gumcourt from BNP Paribas. Please go ahead. Your line is open.

42m 8s

42m 36s

43m 38s

44m 1s

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Key Insights

GIS is prioritizing accelerated organic growth for fiscal 2026, with a focus on value, increased marketing (double-digit spend increases), and innovation, particularly in snacking and core brands; significant investments are already being made in Q4 of fiscal 2025.
The company is targeting at least $100 million in additional cost savings (on top of previously announced savings), with the intent to reinvest these efficiencies and the benefit from the 53rd week back into the business to drive growth and competitiveness.
GIS acknowledges ongoing consumer value-seeking behavior, with confidence indices at low levels; the company is responding by sharpening price points, especially in fruit snacks, and supporting fewer but bigger innovations with robust marketing.
Category growth remains positive (~1%), but GIS underperformed due to price/mix headwinds; management believes closing value gaps, improving marketing, and supporting innovation will restore competitiveness, with expected improvements in cereal and soup starting in Q4.
Retailer inventory headwinds, particularly in pet food, impacted results but are expected to stabilize in Q4; management remains confident in the durability of core categories and plans to provide more detailed guidance for fiscal 2026 during the next earnings update.

General Mills, Inc. Price & Performance (GIS)

Stock Performance

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Year High

P/E Ratio

Low

Year Low

Volume

High

Market Cap

Dividend Yield

Latest News

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

Go Deeper

Latest News

Recent Transcripts

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights