General Mills Faces Challenges Despite Strong Q1 Performance
With a market cap of $36.2 billion, Minneapolis, Minnesota-based General Mills, Inc. (GIS) is a global leader in the food industry. The company produces a wide range of branded foods, including cereals, snacks, yogurt, and pet food products, sold across various retail and food service channels.
Recent Stock Trends
Over the past 52 weeks, shares of General Mills have lagged behind the broader market. While GIS has risen marginally, the S&P 500 Index ($SPX) has gained 35.7%. In 2024, GIS’s shares are slightly up, but this pales in comparison to SPX’s 25.5% increase year-to-date.
Narrowing the focus, GIS has also underperformed compared to the Consumer Staples Select Sector SPDR Fund’s (XLP) 15.7% rise over the past 52 weeks and a 12.2% return year-to-date.
Q1 2025 Results Boost Investor Sentiment
On September 18, shares of General Mills saw a slight recovery after the company announced better-than-expected Q1 2025 adjusted earnings per share (EPS) of $1.07 and revenue of $4.9 billion. The company has implemented cost-saving measures through its Holistic Margin Management (HMM) program, which helped mitigate the effects of inflation. Furthermore, the proposed $2.1 billion sale of its North American Yogurt business has also strengthened investor confidence.
Analyst Expectations and Ratings
For the fiscal year ending in May 2025, analysts project that GIS’s EPS will decline marginally year-over-year to $4.51. However, the company has a strong history of exceeding earnings expectations, having beaten consensus estimates in the last four quarters.
Among the 18 analysts tracking GIS, the consensus rating is a “Moderate Buy,” which includes four “Strong Buy” ratings and 14 “Holds.”
Price Targets and Analyst Insights
On September 20, Barclays analyst Andrew Lazar maintained a “Hold” rating on General Mills, setting a price target of $74.
The average price target of $74.39 suggests a premium of 13.5% over GIS’s current stock price. Meanwhile, the highest price target of $84 indicates a potential upside of 28.2% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein reflect those of the author and do not necessarily align with those of Nasdaq, Inc.
