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General Mills
(NYSE:GIS)
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Rating:52Neutral
Price Target:
$36.00
▼(-9.50% Downside)
Action:Reiterated
Date:10/02/26
GIS scores in the low-50s primarily due to a recent earnings/revenue downturn and elevated leverage, partially offset by still-strong operating/free cash flow. Technicals are notably bearish with the stock below major moving averages and momentum indicators in oversold territory. Support comes from a high dividend yield and a constructive earnings-call narrative focused on innovation and significant cost savings, though inflation and deleveraging timelines remain key risks.
Positive Factors
Strong cash generation
Positive operating and free cash flow provide General Mills with internal funding while earnings are under pressure. Although free cash flow has recently declined, its continued positive level supports liquidity and gives the company capacity to invest in brands, innovation, and operational improvements.
Negative Factors
Revenue and earnings deterioration
The recent break in revenue and earnings performance weakens the company’s fundamental growth profile and makes it harder to sustain prior profitability. Continued pressure could reduce reinvestment capacity and limit the benefits of General Mills’ otherwise solid brand and distribution platform.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Positive operating and free cash flow provide General Mills with internal funding while earnings are under pressure. Although free cash flow has recently declined, its continued positive level supports liquidity and gives the company capacity to invest in brands, innovation, and operational improvements.
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
$18.39B
Dividend Yield7.1%
Average Volume (3M)10.61M
Price to Earnings (P/E)―
Beta (1Y)0.04
Revenue Growth-4.49%
EPS Growth-131.46%
CountryUS
Employees30,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-1.65
Shares Outstanding534,687,130
10 Day Avg. Volume9,043,020
30 Day Avg. Volume10,608,538
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 Cap1.93
Enterprise Value/Revenue1.94
Enterprise Value/Gross Profit5.78
Enterprise Value/Ebitda10.65
Forecast
1Y Price Target
$36.40Price Target Upside-8.50% Downside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)3.08
Revenue Forecast (FY)$17.70B
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 and pet food products to customers such as grocery retailers, mass merchandisers, club stores, e-commerce retailers, and foodservice distributors. Revenue is generated when it ships bran...
General Mills Earnings Call Summary
Earnings Call Date:Sep 23, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 23, 2026
Earnings Call Sentiment Positive
The call had a positive tone, with management emphasizing sequential improvement in North American retail trends, stronger innovation, improved marketing effectiveness, pet growth in cats and treats, and substantial cost-savings and transformation plans. However, the company remains below growth in North America, faces challenges in fruit snacks and dry dog food, expects a low single-digit pet inventory headwind, is managing inflation at the higher end of the 4% to 5% range with Q4 around 6%, and remains above its leverage target. Highlights significantly outweighed the stated challenges.Positive Updates
Sequential Improvement in North America Retail Trends
Management reported a 2-point improvement in dollar sales and improved share performance in the majority of categories. Cereal share improved from down 0.9 points in Q1 last year to down 0.1 points this year, while soup share improved from down 0.4 points to down 0.1 points.
Negative Updates
North America Retail Sales Have Not Returned to Growth
Although dollar sales and category share trends improved, management stated that the business is not yet back to growth and still has work to do.
Read all updates
Q1-2027 Updates
Positive
Negative
Sequential Improvement in North America Retail Trends
Management reported a 2-point improvement in dollar sales and improved share performance in the majority of categories. Cereal share improved from down 0.9 points in Q1 last year to down 0.1 points this year, while soup share improved from down 0.4 points to down 0.1 points.
Read all positive updates
Company Guidance
Management expects input cost inflation at the higher end of the 4% to 5% range, with Q1, Q2, Q3 roughly similar at around 4% and Q4 just a touch outside the range at around 6%; inflation and HMM cost savings are expected to roughly offset over the full year, while gross margins are expected to be roughly flat ex the mechanical 53rd week factor. Pet inventory is expected to remain a low single-digit headwind over the course of the year, media spend is expected to be up low single digits throughout the year, and HMM is expected to run at the high end of the 4% to 5% range going forward. General Mills committed to delivering $750 million of cost savings in this fiscal year and $3 billion in total by fiscal '30, including $2 billion of HMM and $1 billion of transformation; leverage is expected to take at least a couple of years to return to 3x net debt to EBITDA from just to touch over 4, with sequential progress over the next couple of years. Foodservice wheat is about 3/4 hedged through the year and the prior low single-digit headwind is expected to be a tailwind this year in a roughly similar range of low single digits.General Mills Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
55
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.30B | 18.42B | 19.49B | 19.86B | 20.09B | 18.99B |
| Gross Profit | 6.15B | 6.20B | 6.73B | 6.93B | 6.55B | 6.40B |
| EBITDA | 3.34B | 3.36B | 3.92B | 4.08B | 4.08B | 4.16B |
| Net Income | -894.80M | -87.60M | 2.30B | 2.50B | 2.59B | 2.71B |
Balance Sheet | ||||||
| Total Assets | 30.27B | 30.02B | 33.07B | 31.47B | 31.45B | 31.09B |
| Cash, Cash Equivalents and Short-Term Investments | 433.10M | 453.80M | 363.90M | 418.00M | 702.70M | 819.20M |
| Total Debt | 13.61B | 13.54B | 15.30B | 13.32B | 12.06B | 11.98B |
| Total Liabilities | 22.81B | 22.64B | 23.86B | 21.82B | 20.75B | 20.30B |
| Stockholders Equity | 7.45B | 7.37B | 9.20B | 9.40B | 10.45B | 10.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.55B | 1.63B | 2.29B | 2.53B | 2.09B | 2.75B |
| Operating Cash Flow | 2.07B | 2.17B | 2.92B | 3.30B | 2.78B | 3.32B |
| Investing Cash Flow | -552.50M | 1.26B | -1.79B | -1.20B | -346.40M | -1.69B |
| Financing Cash Flow | -2.02B | -3.31B | -1.18B | -2.27B | -2.40B | -2.50B |
General Mills Technical Analysis
Positive
39.78
Price Trends
35.38
Negative
35.13
Negative
36.47
Negative
Market Momentum
-0.26
Negative
54.79
Neutral
70.60
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 39.78 is above the 20-day moving average (MA) of 32.40, above the 50-day MA of 35.38, and above the 200-day MA of 36.47, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 70.60 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $13.88B | 60.46 | 4.06% | 3.42% | 5.08% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $11.59B | 33.43 | 4.33% | 5.56% | 0.73% | -54.64% | |
54 Neutral | $6.18B | 15.47 | 10.18% | 6.85% | -4.96% | -33.88% | |
53 Neutral | $29.41B | -8.67 | -8.44% | 6.45% | -1.62% | 36.06% | |
52 Neutral | $18.39B | -20.84 | -10.69% | 7.10% | -4.49% | -131.46% | |
47 Neutral | $7.09B | -3.73 | -26.28% | 8.24% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
GIS
General Mills
34.39
-10.78
-23.87%
CPB
Campbell Soup
20.73
-8.77
-29.74%
CAG
Conagra Brands
14.86
-2.28
-13.32%
HRL
Hormel Foods
21.06
-1.43
-6.37%
SJM
JM Smucker
129.98
29.35
29.17%
KHC
Kraft Heinz
24.80
0.85
3.55%
General Mills Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
General Mills shareholders back management at annual meeting
Positive
Oct 2, 2026
At its Sept. 29, 2026 annual meeting, General Mills shareholders voted on a slate of corporate governance and compensation matters, with all director nominees receiving strong support and the advisory vote on executive pay passing by a wide margin...
Business Operations and StrategyExecutive/Board Changes
General Mills Announces CEO Transition and Governance Shift
Neutral
Sep 30, 2026
On September 29, 2026, General Mills’ board elected Chief Operating Officer Dana M. McNabb as chief executive officer effective January 1, 2027, succeeding Jeffrey L. Harmening, who will retire from the CEO role but remain as executive chair...
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.