General Mills (NYSE:GIS) Issues Quarterly Earnings Results, Beats Estimates By $0.15 EPS

General Mills (NYSE:GIS) released its earnings results on Wednesday. The company reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.15, FiscalAI reports. General Mills had a return on equity of 19.19% and a net margin of 12.05%.The firm had revenue of $4.61 billion for the quarter, compared to the consensus estimate of $4.59 billion. During the same period in the prior year, the business posted $0.53 earnings per share. The firm’s revenue for the quarter was up 1.2% compared to the same quarter last year. General Mills updated its FY 2027 guidance to 3.000-3.200 EPS.

Here are the key takeaways from General Mills’ conference call:

• General Mills said it exited fiscal 2026 with a stronger foundation, citing improved household penetration, base volume, and innovation that should support a better fiscal 2027.
• Management is shifting from last year’s price-reset strategy to a bigger focus on innovation, renovation, packaging, and brand communication to drive growth and better price mix.
• The company expects $3 billion in cumulative cost savings through fiscal 2030, including $750 million in fiscal 2027, largely from HMM and Global Transformation initiatives.
• Executives warned that the consumer environment remains pressured, with shoppers still trading to promotion and value, so they are not assuming meaningful category improvement in fiscal 2027.
• General Mills sees fiscal 2027 organic sales improvement as driven mainly by its own execution, especially in businesses like Totino’s, Wilderness, and pet, while pet inventory volatility and higher inflation may create near-term headwinds.

General Mills Stock Performance

Shares of General Mills stock opened at $37.61 on Thursday. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.56 and a quick ratio of 0.36. The firm has a market cap of $20.07 billion, a P/E ratio of 9.20 and a beta of -0.03. The firm has a 50 day simple moving average of $34.18 and a 200 day simple moving average of $39.88. General Mills has a fifty-two week low of $31.75 and a fifty-two week high of $54.18.

General Mills Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be paid a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a dividend yield of 6.5%. The ex-dividend date of this dividend is Friday, July 10th. General Mills’s dividend payout ratio is 59.66%.

Insider Activity

In related news, insider Ricardo Fernandez sold 7,995 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $34.50, for a total value of $275,827.50. Following the transaction, the insider directly owned 62,283 shares in the company, valued at $2,148,763.50. This represents a 11.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Jacqueline Williams-Roll sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $34.27, for a total transaction of $342,700.00. Following the completion of the transaction, the insider directly owned 86,002 shares in the company, valued at approximately $2,947,288.54. The trade was a 10.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On General Mills

A number of institutional investors have recently made changes to their positions in the stock. CenterBook Partners LP bought a new stake in General Mills in the fourth quarter valued at approximately $394,000. Haverford Trust Co boosted its position in shares of General Mills by 11.0% during the fourth quarter. Haverford Trust Co now owns 7,334 shares of the company’s stock worth $341,000 after purchasing an additional 727 shares in the last quarter. Alpha Family Trust acquired a new stake in General Mills during the 4th quarter worth $302,000. Keel Point LLC raised its stake in General Mills by 47.1% during the 2nd quarter. Keel Point LLC now owns 5,736 shares of the company’s stock worth $297,000 after buying an additional 1,837 shares during the period. Finally, DRW Securities LLC bought a new position in General Mills during the fourth quarter worth about $268,000. 75.71% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Stifel Nicolaus lowered their price target on shares of General Mills from $44.00 to $40.00 and set a “buy” rating on the stock in a report on Tuesday, April 21st. JPMorgan Chase & Co. cut their price target on shares of General Mills from $36.00 to $31.00 and set an “underweight” rating for the company in a research note on Wednesday, June 3rd. Barclays decreased their price objective on General Mills from $41.00 to $36.00 and set an “equal weight” rating on the stock in a report on Monday, May 11th. BTIG Research started coverage on General Mills in a report on Monday, April 13th. They issued a “neutral” rating for the company. Finally, Mizuho cut their target price on General Mills from $47.00 to $39.00 and set a “neutral” rating for the company in a research report on Thursday, March 19th. Four research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and seven have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $38.44.

Key General Mills News

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: General Mills beat Wall Street estimates for both earnings and revenue, with adjusted EPS of $0.95 versus $0.80 expected and sales of $4.61 billion versus $4.59 billion expected, signaling resilient demand in packaged foods. Reuters: General Mills beats quarterly estimates on steady staples demand, higher prices
• Positive Sentiment: Management announced a plan to generate about $3 billion in cost savings, which investors view as a way to protect margins and offset inflation and softer consumer spending. Article: Why General Mills Stock Jumped Today
• Positive Sentiment: The company also maintained its quarterly dividend, reinforcing its appeal as a defensive income stock while earnings improve. Article: General Mills (GIS) Stock Climbs on Dividend Stability and $3B Cost Reduction Plan
• Neutral Sentiment: Conference call commentary emphasized brand investment, innovation, protein-focused products, and pet food as long-term growth drivers, but also highlighted ongoing pressure from inflation and changing consumer behavior. TipRanks: General Mills Earnings Call Balances Progress And Pressure
• Negative Sentiment: Despite the beat, fiscal 2027 EPS guidance of $3.00 to $3.20 came in below the Street’s roughly $3.13 estimate, which could limit upside if investors focus on slower forward growth. Article: General Mills tops quarterly expectations despite cautious FY2027 outlook

General Mills Company Profile

General Mills, Inc (NYSE: GIS) is a multinational consumer foods company that develops, manufactures and markets a broad portfolio of branded food products. Its product categories include ready-to-eat and hot cereals, baking mixes and ingredients, snacks and bars, refrigerated and frozen doughs, yogurt and other dairy products, and a variety of shelf-stable meals and meal components. The company’s portfolio features widely recognized consumer brands across grocery store, mass channel and foodservice outlets.

Founded in the early 20th century and incorporated under its current name in 1928, General Mills has grown through both internal brand development and strategic expansion to become a global food company.