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1. Company Snapshot

1.a. Company Description

General Mills, Inc.manufactures and markets branded consumer foods worldwide.The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet.


It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and salty snacks, ice cream, nutrition bars, wellness beverages, and savory and grain snacks, as well as various organic products, including frozen and shelf-stable vegetables.It also supplies branded and unbranded food products to the North American foodservice and commercial baking industries; and manufactures and markets pet food products, including dog and cat food.The company markets its products under the Annie's, Betty Crocker, Bisquick, Blue Buffalo, Blue Basics, Blue Freedom, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jus-Rol, Kitano, Kix, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Oui, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino's, Trix, Wanchai Ferry, Wheaties, Wilderness, Yoki, and Yoplait trademarks.


It sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores, as well as drug, dollar, and discount chains.The company operates 466 leased and 392 franchise ice cream parlors.General Mills, Inc.


was founded in 1866 and is headquartered in Minneapolis, Minnesota.

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1.b. Last Insights on GIS

General Mills' recent performance was negatively driven by weak volumes and mix, weighing on margins and profits, despite beating fiscal fourth-quarter EPS estimates. The company's top-line numbers were hurt by private label shifts and weak global demand, while its bottom-line was pressured by escalating medical care costs. Additionally, General Mills' cautious full-year outlook and disappointing sales guidance further weighed on its performance.

1.c. Company Highlights

2. General Mills' Q1 Fiscal 2026 Results: A Mixed Bag

General Mills reported a strong first quarter with operating profit and EPS exceeding expectations. EPS came in at $0.86, beating estimates of $0.818. Revenue was pressured by increased investments, the impact of the Yoplait divestiture, and phasing comparisons. North America Retail volume declined by 1%, but the company gained or held pound share in 8 of its top 10 categories. The company's P/E Ratio is 9.5, and its Dividend Yield is 4.82%, indicating a relatively stable return for investors.

Publication Date: Sep -18

📋 Highlights
  • Q1 Earnings Beat Expectations:: Operating profit and EPS exceeded forecasts due to favorable inflation phasing and trade expense timing in international markets, despite a 25% Q2 profit drop expected from unwinding benefits.
  • Volume Decline in North America Retail:: 1% volume decline driven by flower/desserts challenges and pet food shipment timing, though 8 of 10 top categories retained or gained pound share.
  • Investment in Innovation:: New product innovation now 5% of sales (up from 3.5%), focusing on refrigerated dough, fruit snacks, and Haagen-Dazs in China, with positive household penetration gains.
  • Pet Food Strategy Shift:: Launching premium brand Edgard & Cooper with PetSmart to counter channel challenges, with modest Q2 revenue contribution and stronger back-half growth expected.
  • GLP-1 Trend Opportunity:: Leveraging increased demand for protein/fiber-rich products like Cheerios Protein amid rising GLP-1 usage, offsetting calorie-conscious category declines.

Operational Highlights

The company is focused on driving volume growth through increased investments in innovation, new product launches, and marketing campaigns. They are seeing positive early results, particularly in refrigerated dough, fruit snacks, salty snacks, and snack bars. Despite a slowdown in the Wilderness pet food business, the overall pet business held its pound share. The company is launching Edgard & Cooper, a super-premium pet food brand, exclusively with PetSmart, to address the challenges in the pet specialty channel.

Category Trends and Innovation

General Mills is innovating in areas like pet food with fresh offerings and Haagen-Dazs in China. New product innovation now represents 5% of sales, up from 3.5% previously. The company is on track to eliminate artificial dyes from its products by next summer and is actively working on reformulating to meet evolving consumer preferences regarding additives. The company expects ongoing growth in GLP-1 usage, which will impact some categories due to reduced calorie consumption, but also presents opportunities, particularly in protein and fiber-rich products like Cheerios Protein.

Outlook and Guidance

The company expects first-half aggregate profit to be in line with Q4 of fiscal 2025. Operating profit in the first half of the year is expected to be down similarly to the fourth quarter of the previous year, translating to a roughly 25% decrease in Q2. Analysts estimate next year's revenue growth at -4.6%. The company's ROE is 31.31%, and its ROIC is 12.23%, indicating a relatively strong return on equity and invested capital.

Valuation and Dividend Yield

The company's P/B Ratio is 2.91, and its P/S Ratio is 1.44, indicating a relatively reasonable valuation. The Dividend Yield is 4.82%, providing a stable return for investors. The company's Net Debt / EBITDA is 2.98, indicating a manageable debt level.

3. NewsRoom

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For The First Time Ever, Reese's Puffs Cereal Goes Dark With New Dark Chocolate Flavor

Dec -04

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General Mills, Inc. (NYSE:GIS) Given Consensus Rating of “Hold” by Analysts

Dec -04

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Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

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Boston Family Office LLC Decreases Holdings in General Mills, Inc. $GIS

Dec -01

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General Mills: I Was Early, But Reaffirm The Buy Amid Historically Low P/E

Nov -26

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The Bottom Fishing Club - General Mills: Flight-To-Safety Pick, 5% Dividend

Nov -25

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General Mills to Webcast Fiscal 2026 Second Quarter Earnings Results on Dec. 17, 2025

Nov -19

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November's 5 Dividend Growth Stocks With Yields Up To 6.96%

Nov -18

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.50%)

6. Segments

North America Retail

Expected Growth: 3.0%

The North America Retail segment is expected to grow at a moderate pace, driven by steady demand for General Mills' iconic brands, innovation in emerging categories, and modest pricing gains, partially offset by ongoing market share pressure.

International

Expected Growth: 4.0%

The International segment is expected to experience robust growth, driven by strong demand for General Mills' brands in emerging markets, particularly in Asia and Latin America, as well as continued innovation and expansion in Europe.

North America Foodservice

Expected Growth: 2.0%

The North America Foodservice segment is expected to experience slow growth due to declining volume from K-12 schools and other institutions, offset by some pricing gains and innovation in areas such as customized food solutions.

North America Pet

Expected Growth: 4.0%

The North America Pet segment is expected to experience solid growth, driven by strong demand for premium pet food and treats, as well as continued innovation and expansion in areas such as natural and organic pet food.

Corporate and Other

Expected Growth: 1.0%

The Corporate and Other segment is expected to experience slow growth due to ongoing costs associated with corporate functions, offset by some growth in licensing and other income.

7. Detailed Products

Cereals

General Mills offers a wide range of cereals for breakfast, including Cheerios, Cinnamon Toast Crunch, and Lucky Charms.

Snacks

General Mills provides a variety of snack options, such as Nature Valley granola bars, Fruit Roll-Ups, and Chex Mix.

Baking Products

General Mills offers a range of baking products, including Gold Medal flour, Betty Crocker baking mixes, and Pillsbury baking products.

Yogurt

General Mills offers a variety of yogurt products, including Yoplait and Annie's Organic.

Meat and Frozen Products

General Mills provides a range of meat and frozen products, including Totino's pizza and Jeno's pizza.

Pillsbury Baking Products

General Mills offers a range of Pillsbury baking products, including refrigerated dough, frosting, and baking mixes.

8. General Mills, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

General Mills, Inc. faces moderate threat from substitutes due to the presence of alternative breakfast options such as oatmeal, yogurt, and fruit.

Bargaining Power Of Customers

General Mills, Inc. has a large customer base, but individual customers have limited bargaining power due to the company's diversified product portfolio.

Bargaining Power Of Suppliers

General Mills, Inc. faces moderate bargaining power from suppliers due to the presence of multiple suppliers for raw materials such as wheat, sugar, and corn.

Threat Of New Entrants

General Mills, Inc. operates in a highly competitive industry, but the threat of new entrants is low due to the high barriers to entry, including significant capital requirements and established distribution networks.

Intensity Of Rivalry

General Mills, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.84%
Debt Cost 4.20%
Equity Weight 47.16%
Equity Cost 4.65%
WACC 4.41%
Leverage 112.02%

11. Quality Control: General Mills, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ingredion

A-Score: 6.5/10

Value: 6.8

Growth: 6.6

Quality: 5.9

Yield: 6.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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General Mills

A-Score: 6.4/10

Value: 5.7

Growth: 4.1

Quality: 5.9

Yield: 8.0

Momentum: 5.5

Volatility: 9.3

1-Year Total Return ->

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Kraft Heinz

A-Score: 6.0/10

Value: 8.7

Growth: 3.8

Quality: 4.4

Yield: 9.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

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Walmart

A-Score: 5.5/10

Value: 2.4

Growth: 5.4

Quality: 4.8

Yield: 2.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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Costco Wholesale

A-Score: 5.4/10

Value: 1.4

Growth: 7.0

Quality: 5.7

Yield: 2.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Procter & Gamble

A-Score: 5.3/10

Value: 2.8

Growth: 4.4

Quality: 7.4

Yield: 5.0

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.98$

Current Price

45.98$

Potential

-0.00%

Expected Cash-Flows