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General Mills
(NYSE:GIS)
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Rating:61Neutral
Price Target:
$40.00
▲(12.68% Upside)
Action:Reiterated
Date:07/02/26
The score is primarily held back by weakening recent financial performance—loss-making results, sharply lower free cash flow momentum, and rising leverage—despite historically solid margins and cash generation. Technicals are comparatively supportive with improving short- to medium-term momentum, while valuation is helped by a high dividend yield but constrained by a negative P/E. The earnings call adds cautious upside from a sizable cost-savings plan and improving brand metrics, but near-term inflation, consumer pressure, and execution risks keep the outlook moderate.
Positive Factors
Recovery in Household Penetration & Base Volume
Improving household penetration and base-volume metrics signal restored underlying brand demand after prior pricing actions. Moving from a ~10% trough to ~+1% base suggests investments and pricing are stabilizing volumes, supporting durable shelf presence and gradual organic revenue recovery.
Negative Factors
Elevated and Rising Leverage
A materially higher debt-to-equity ratio (~1.84) weakens financial flexibility, increases interest and refinancing exposure, and limits capacity for buybacks, M&A or accelerated investment. Elevated leverage also raises sensitivity to earnings volatility, complicating a steady deleveraging path.
Read all positive and negative factors
Positive Factors
Negative Factors
Recovery in Household Penetration & Base Volume
Improving household penetration and base-volume metrics signal restored underlying brand demand after prior pricing actions. Moving from a ~10% trough to ~+1% base suggests investments and pricing are stabilizing volumes, supporting durable shelf presence and gradual organic revenue recovery.
Read all positive factors
General Mills Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Highlights profitability across different business segments, revealing which areas are driving earnings and where there might be challenges or opportunities for improvement.
Highlights profitability across different business segments, revealing which areas are driving earnings and where there might be challenges or opportunities for improvement.
Data provided by:
The Fly
The FlyGeneral Mills (GIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.05B
Dividend Yield5.19%
Average Volume (3M)10.18M
Price to Earnings (P/E)―
Beta (1Y)-0.04
Revenue Growth-5.45%
EPS Growth-104.44%
CountryUS
Employees34,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.17
Shares Outstanding533,708,400
10 Day Avg. Volume9,619,387
30 Day Avg. Volume10,176,151
Financial Highlights & Ratios
PEG Ratio2.02
Price to Book (P/B)2.50
Price to Sales (P/S)1.00
P/FCF Ratio11.32
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit5.01
Enterprise Value/Ebitda102.98
Forecast
1Y Price Target
$35.53Price Target Upside0.09% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)3.1
Revenue Forecast (FY)$17.80B
General Mills Business Overview & Revenue Model
Company Description
General Mills, Inc. functions as a prominent global producer and vendor of well-known consumer food brands. The company structures its widespread operations into five main divisions: North American retail, convenience stores and foodservice provid...
How the Company Makes Money
General Mills makes money primarily by selling packaged food products to retail customers (e.g., grocery, mass, club, convenience and e-commerce retailers) and to foodservice and commercial customers, recognizing revenue when control of products t...
General Mills Earnings Call Summary
Earnings Call Date:Jul 01, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 23, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: management highlighted meaningful tactical and strategic improvements (household penetration recovery, brand innovations, early category stabilization and a $3B transformation target with $750M in FY27) that support confidence in a better FY27. However, notable near‑term headwinds remain — a pressured consumer, Totino's and Wilderness execution issues, shipment timing and net inflation — which temper the outlook. Execution of innovation, price/mix strategies and the transformation program will be critical to turn the improvements into sustained top‑line growth.Positive Updates
Household Penetration and Base Volume Recovery
General Mills reported household penetration increased for the first time in several years and base volume (the part of the business where they invested on price) improved to ~+1% after being down ~10% prior to the FY26 pricing actions; pound share in North America Retail (NAR) also increased.
Negative Updates
Totino's Execution and Volume Decline
Totino's was a significant headwind in FY26 due to a poor price-pack architecture conversion and lack of innovation, materially contributing to pound volume declines; while new SKUs show early improvement, the business was a major drag on results.
Read all updates
Q4-2026 Updates
Positive
Negative
Household Penetration and Base Volume Recovery
General Mills reported household penetration increased for the first time in several years and base volume (the part of the business where they invested on price) improved to ~+1% after being down ~10% prior to the FY26 pricing actions; pound share in North America Retail (NAR) also increased.
Read all positive updates
Company Guidance
Management framed fiscal 2027 guidance around a plan that assumes net inflation of roughly 4–5% (modeling about $100/ barrel oil on the uncovered portion and conversion cost tied to lagging PPI, with ~8–9 months of coverage), delivery of $3.0 billion cumulative cost savings through fiscal 2030 (≈$2.0B from Holistic Margin Management and ≈$1.0B from the Global Transformation Initiative and other actions), including $750 million of savings expected in FY27, and modest price/mix accretion (driven largely by mix from innovation/renovation). They expect categories to track roughly in line with FY26 (North America Retail ~flat in dollars), but flagged near‑term headwinds: Q1 shipment‑timing pressure in pet, a FY26 comparison headwind from the yogurt divestiture, and an assumed low‑single‑digit FY27 headwind from retail inventory/customer mix (customer mix drove a ~2‑point Q4 gap and ~4‑point full‑year gap between organic sales and retail sales). Management noted improving underlying footprints—household penetration and base volume are up (~base +1% vs. last year’s ~10% trough), specific brand metrics (Cheerios Protein ≈$100M, Love Made Fresh +80% in the quarter, pet retail sales +1%)—and said inflation pressure should be most negative early in the year and progressively improve into Q2–Q3 as savings ramp.General Mills Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
62
Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.42B | 19.49B | 19.86B | 20.09B | 18.99B |
| Gross Profit | 6.20B | 6.73B | 6.93B | 6.55B | 6.40B |
| EBITDA | 3.33B | 3.92B | 4.08B | 4.08B | 4.16B |
| Net Income | -87.60M | 2.30B | 2.50B | 2.59B | 2.71B |
Balance Sheet | |||||
| Total Assets | 30.02B | 33.07B | 31.47B | 31.45B | 31.09B |
| Cash, Cash Equivalents and Short-Term Investments | 453.80M | 363.90M | 418.00M | 702.70M | 819.20M |
| Total Debt | 13.54B | 15.30B | 13.32B | 12.06B | 11.98B |
| Total Liabilities | 22.64B | 23.86B | 21.82B | 20.75B | 20.30B |
| Stockholders Equity | 7.37B | 9.20B | 9.40B | 10.45B | 10.54B |
Cash Flow | |||||
| Free Cash Flow | 1.63B | 2.29B | 2.53B | 2.09B | 2.75B |
| Operating Cash Flow | 2.17B | 2.92B | 3.30B | 2.78B | 3.32B |
| Investing Cash Flow | 1.26B | -1.79B | -1.20B | -346.40M | -1.69B |
| Financing Cash Flow | -3.31B | -1.18B | -2.27B | -2.40B | -2.50B |
General Mills Technical Analysis
Positive
35.50
Price Trends
34.27
Positive
37.08
Positive
41.43
Negative
Market Momentum
0.74
Negative
66.24
Neutral
75.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIS, the sentiment is Positive. The current price of 35.5 is above the 20-day moving average (MA) of 34.52, above the 50-day MA of 34.27, and below the 200-day MA of 41.43, indicating a neutral trend. The MACD of 0.74 indicates Negative momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 75.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIS.
General Mills Risk Analysis
General Mills disclosed 22 risk factors in its most recent earnings report. General Mills reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
General Mills Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.37B | 8.88 | 27.31% | 2.61% | 9.54% | 108.44% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.95B | 11.38 | 15.30% | 5.64% | -2.90% | 33.92% | |
62 Neutral | $13.76B | 29.41 | 5.86% | 4.82% | 2.47% | -37.67% | |
62 Neutral | $12.43B | -89.45 | -2.44% | 4.45% | 3.72% | 88.76% | |
61 Neutral | $20.05B | -221.00 | 23.70% | 5.19% | -5.45% | -104.44% | |
53 Neutral | $30.08B | -5.24 | -13.85% | 6.75% | -1.75% | -319.68% |
* Consumer Defensive Sector Average
GIS
General Mills
37.57
-11.49
-23.41%
CPB
Campbell Soup
23.32
-5.65
-19.50%
HRL
Hormel Foods
25.00
-4.06
-13.97%
SJM
JM Smucker
116.28
16.90
17.01%
MKC
McCormick & Company
53.45
-18.29
-25.49%
KHC
Kraft Heinz
25.37
0.93
3.81%
General Mills Corporate Events
Executive/Board Changes
General Mills Names Dana McNabb Chief Operating Officer
Positive
May 6, 2026
General Mills, Inc. announced that its board elected longtime executive Dana M. McNabb as chief operating officer and as a member of the board, effective June 1, 2026, marking a significant elevation for the leader who has held senior roles across...
Executive/Board ChangesShareholder Meetings
General Mills Announces Departure of Longtime Board Director
Neutral
May 4, 2026
On May 4, 2026, General Mills announced that longtime director Steve Odland, who has served on the board for more than two decades, will not stand for reelection at the company’s 2026 annual meeting of shareholders in September. He will cont...
Private Placements and FinancingRegulatory Filings and Compliance
General Mills Issues €1.7 Billion Long-Term Subordinated Notes
Positive
Apr 16, 2026
On April 9, 2026, General Mills agreed to sell €1.0 billion of 4.750% Series A fixed-to-fixed reset rate junior subordinated notes and €700 million of 5.250% Series B fixed-to-fixed reset rate junior subordinated notes, both maturing i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.