With a market cap of $36.2 billion, Minneapolis, Minnesota-based General Mills, Inc. (GIS) is a global leader in the food industry. The company produces a wide range of branded foods, including cereals, snacks, yogurt, and pet food products, sold across various retail and food service channels.
Shares of the breakfast and snack food giant have underperformed the broader market over the past 52 weeks. GIS has risen marginally over this time frame, while the broader S&P 500 Index ($SPX) has gained 35.7%. In 2024, shares of GIS are slightly up, compared to SPX’s 25.5% increase on a YTD basis.
Narrowing the focus, GIS has also lagged behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 15.7% rise over the past 52 weeks and 12.2% return on a YTD basis.
Shares of General Mills recovered marginally on Sept. 18 after the company reported better-than-expected Q1 2025 adjusted EPS of $1.07 and revenue of $4.9 billion. The company’s cost-saving efforts under its Holistic Margin Management (HMM) program helped offset inflation impacts, supporting profit margins. Additionally, General Mills' proposed $2.1 billion sale of its North American Yogurt business to streamline its portfolio contributed to improved investor confidence.
For the current fiscal year, ending in May 2025, analysts expect GIS’ EPS to decline marginally year-over-year to $4.51. However, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and 14 “Holds.”
On Sept. 20, Barclays analyst Andrew Lazar reaffirmed a "Hold" rating on General Mills and set a price target of $74.
The mean price target of $74.39 represents a premium of 13.5% to GIS’ current levels. The Street-high price target of $84, implies a potential upside of 28.2% from the current price.
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