General Mills Faces Challenges Amid Declining Stock Performance

General Mills, Inc. (GIS), valued at $29.6 billion, is an American multinational food corporation based in Minnesota. The company is recognized for brands such as Cheerios, Betty Crocker, Pillsbury, Nature Valley, and Blue Buffalo. It operates across North America, Europe, and Asia, with its products available in over 100 countries.

Stock Performance Overview

Over the past year, General Mills has significantly lagged behind broader market trends, with its stock plunging 24.8% in the last 52 weeks and 16.5% year-to-date (YTD). In contrast, the S&P 500 Index ($SPX) has risen by 12.3% over the same period.

Comparison to Food ETFs

In examining the Invesco Food & Beverage ETF’s (PBJ) performance, General Mills has also struggled, with the ETF falling 1.6% in the past year and producing 1.2% returns in 2025. This underperformance highlights the challenges General Mills faces in a competitive market.

Factors Impacting Performance

General Mills’ recent struggles are attributed to declining sales, reduced earnings guidance, increased costs, and a shift in consumer preferences toward lower-priced, private-label goods. The company has also faced regulatory scrutiny over food additives and weak international performance, particularly in China, further impacting the stock.

On May 13, General Mills shares declined over 1%, aligning with a broader downturn in defensive food and beverage stocks, even as the overall market exhibited gains.

Expectations and Analyst Ratings

Analysts anticipate a 7.3% decline in GIS’ earnings for the current fiscal year, projecting earnings of $4.19 per share. Nonetheless, General Mills has a history of surpassing analysts’ earnings estimates, achieving this in each of the past four quarters.

Among the 18 analysts covering General Mills, the consensus rating is a “Hold,” comprised of five “Strong Buy,” 13 “Hold,” and two “Strong Sell” ratings.

Recent Coverage and Price Targets

On April 23, UBS Group AG (UBS) initiated coverage of General Mills with a “Sell” rating and established a price target of $54, highlighting challenges including reinvestment pressures and the effects of yogurt business divestitures on profitability.

Currently, GIS has a mean price target of $61.50, which suggests a 15.4% premium over its current price. The highest target set by analysts is $70, indicating potential upside of 31.4%.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For additional details, please view the Barchart Disclosure Policy here.

More news from Barchart

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.