RBC Capital Previews General Mills' Upcoming Q3 Earnings

General Mills (NYSE:GIS) issued a cautious outlook for its new fiscal year, forecasting flat-to-negative organic sales and a steep drop in adjusted operating profit as it contends with weakening consumer demand and rising input costs tied to U.S. tariffs. As a result, the company’s shares fell over 3% intra-day today.

The packaged food giant expects organic net sales to range from down 1% to up 1%, while adjusted operating profit is projected to fall 10% to 15% in constant currency from last year’s $3.4 billion base. The company attributed the earnings pressure to a combination of tariff-driven cost inflation, elevated strategic spending, and a corporate incentive reset—factors it says will outweigh benefits from cost-saving initiatives and an extra fiscal week.

General Mills also acknowledged that category growth in fiscal 2026 is likely to underperform its long-term expectations, pointing to a tough consumer environment where budget-conscious shoppers are pulling back amid economic uncertainty and price fatigue.

Despite the near-term headwinds, the company plans to make sizable investments in growth areas, particularly in its U.S. fresh pet food business, as well as in value-focused innovation and brand support.

In its fiscal fourth quarter, net sales declined 3.3% year-over-year to $4.56 billion, just shy of consensus estimates, while adjusted EPS of $0.74 came in slightly ahead of the expected $0.71. Still, the soft guidance and margin pressures weighed on sentiment, underscoring the challenging road ahead for consumer staples firms navigating inflation and shifting shopper behavior.

General Mills, Inc. (NYSE:GIS) is a leading global food company known for its popular brands like Pillsbury, Cheerios, and Betty Crocker. The company operates in the consumer packaged goods industry, competing with other giants like Kellogg's and Nestlé. General Mills focuses on producing and marketing branded consumer foods sold through retail stores.

On June 25, 2025, General Mills reported earnings per share (EPS) of $0.74, exceeding the estimated $0.71. This indicates the company's ability to generate profit for each outstanding share, which is a positive sign for investors. Despite this, the company generated a revenue of approximately $4.56 billion, slightly below the estimated $4.60 billion, highlighting challenges in meeting revenue expectations.

The company's financial results for the fourth quarter and the full fiscal year ending May 25, 2025, show that strategic investments in the latter half of fiscal 2025 enhanced consumer value. This led to improved volume and market share trends in the fourth quarter, as highlighted by General Mills' Chairman and CEO, Jeff Harmening. These investments helped the company align its financial results with updated expectations.

General Mills faces challenges with weak demand for refrigerated baked goods and snacks, compounded by rising costs in a tariffs-driven and uncertain macroeconomic environment. This has led to a projected annual profit that falls short of expectations. The company's price-to-earnings (P/E) ratio of approximately 11.53 and price-to-sales ratio of about 1.49 reflect the market's valuation of its revenue and earnings.

The company's financial health is further illustrated by its enterprise value to sales ratio of around 2.18 and enterprise value to operating cash flow ratio of approximately 13.54. General Mills has an earnings yield of 8.67%, indicating a solid return on investment for shareholders. However, the debt-to-equity ratio of 1.53 suggests a higher reliance on debt for financing, and a current ratio of 0.67 indicates challenges in covering short-term liabilities with short-term assets.

General Mills, Inc. (NYSE:GIS) is a leading global food company known for its popular brands like Cheerios and Yoplait. As it prepares to release its quarterly earnings on June 25, 2025, analysts have set expectations for an earnings per share (EPS) of $0.71 and projected revenue of $4.6 billion. This report will be crucial for investors as it will be released before the market opens.

The anticipated EPS of $0.71 represents a significant year-over-year decline of 29.7%, while the projected revenue of $4.6 billion marks a 2.4% decrease from the same quarter last year. Despite these declines, there has been a slight upward revision of 0.4% in the consensus EPS estimate over the past 30 days. This revision suggests that analysts have adjusted their expectations, which can influence investor actions.

General Mills faces challenges such as inflation, a shift towards private label products, and weak global demand, impacting its earnings and sales. The company expects a 7-8% drop in EPS and operating profit for fiscal 2025 due to ongoing revenue and margin challenges. The consensus estimate for fiscal 2025 earnings is $4.19 per share, reflecting a 7.3% decline from the previous year.

The company's financial metrics provide insight into its market valuation. With a price-to-earnings (P/E) ratio of 11.55 and a price-to-sales ratio of 1.49, investors can gauge how the market values General Mills' earnings and sales. The enterprise value to sales ratio of 2.19 and the enterprise value to operating cash flow ratio of 13.55 further reflect the company's valuation relative to its sales and cash flow.

General Mills' debt-to-equity ratio of 1.53 indicates the proportion of debt used to finance its assets, while a current ratio of 0.67 shows its ability to cover short-term liabilities with short-term assets. These metrics, along with an earnings yield of 8.66%, provide a comprehensive view of the company's financial health and potential return on investment for shareholders.

General Mills (NYSE:GIS) saw its stock fall over 2% intra-day today despite reporting better-than-expected earnings, as revenue came in below estimates and the company cut its full-year outlook, citing weaker demand and inventory challenges.

For the third quarter, the company posted adjusted earnings per share of $1.00, slightly exceeding analyst expectations of $0.98. However, revenue of $4.8 billion fell short of the $4.99 billion consensus, reflecting inventory reductions at retailers and a slowdown in snacking categories.

Organic net sales declined 5% year-over-year, with approximately 4 percentage points of that drop tied to retailer inventory pullbacks and a reversal of favorable timing factors from Q2.

The North America Retail division, which remains General Mills’ largest business segment, saw sales decline 7% to $3.0 billion, highlighting softer consumer demand.

Looking ahead, General Mills lowered its fiscal 2025 guidance, now expecting organic net sales to decline between 2% and 1.5%, down from its previous forecast of flat to 1% growth. The company also revised its adjusted operating profit and EPS outlook, now projecting a 7% to 8% decline in constant currency, compared to the previous range of a 2% to 4% drop.

General Mills (NYSE:GIS) saw its stock fall over 2% intra-day today despite reporting better-than-expected earnings, as revenue came in below estimates and the company cut its full-year outlook, citing weaker demand and inventory challenges.

For the third quarter, the company posted adjusted earnings per share of $1.00, slightly exceeding analyst expectations of $0.98. However, revenue of $4.8 billion fell short of the $4.99 billion consensus, reflecting inventory reductions at retailers and a slowdown in snacking categories.

Organic net sales declined 5% year-over-year, with approximately 4 percentage points of that drop tied to retailer inventory pullbacks and a reversal of favorable timing factors from Q2.

The North America Retail division, which remains General Mills’ largest business segment, saw sales decline 7% to $3.0 billion, highlighting softer consumer demand.

Looking ahead, General Mills lowered its fiscal 2025 guidance, now expecting organic net sales to decline between 2% and 1.5%, down from its previous forecast of flat to 1% growth. The company also revised its adjusted operating profit and EPS outlook, now projecting a 7% to 8% decline in constant currency, compared to the previous range of a 2% to 4% drop.

General Mills, Inc. (NYSE: GIS) is a leading global food company with a diverse portfolio of brands such as Pillsbury, Cheerios, and Betty Crocker. Operating in various segments including Pet, Foodservice, and International, General Mills competes with other major food manufacturers and private label brands. The company is recognized for its focus on innovation and sustainability in the food industry.

On March 19, 2025, General Mills reported earnings per share (EPS) of $1, exceeding the estimated $0.959. This positive EPS result highlights the company's ability to manage costs and drive profitability despite challenges. However, the revenue of approximately $4.84 billion fell short of the estimated $4.96 billion, reflecting the impact of economic concerns and reduced consumer spending on snacks.

General Mills has revised its guidance, anticipating a decline in organic sales for fiscal year 2025. This adjustment is due to heightened competition from more affordable private label brands and a challenging macroeconomic environment. The persistently high cost of living has further impacted consumer spending, leading to a reduction in the company's annual sales forecast.

The fiscal 2025 third-quarter results revealed that organic net sales fell short of expectations, primarily due to unexpected retailer inventory challenges and a slowdown in the snacking categories. Despite these setbacks, General Mills experienced positive market share trends in its Pet, Foodservice, and International segments, indicating areas of improvement and potential growth opportunities.

General Mills' financial metrics provide insight into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 12.93 and a price-to-sales ratio of about 1.67. The enterprise value to sales ratio is around 2.29, while the enterprise value to operating cash flow ratio is approximately 12.72. The earnings yield is about 7.73%, and the debt-to-equity ratio is approximately 1.58. The current ratio is around 0.92, indicating the company's ability to cover short-term liabilities with short-term assets.

General Mills, Inc. (NYSE: GIS) is a leading global food company with a diverse portfolio of brands such as Pillsbury, Cheerios, and Betty Crocker. Operating in various segments including Pet, Foodservice, and International, General Mills competes with other major food manufacturers and private label brands. The company is recognized for its focus on innovation and sustainability in the food industry.

On March 19, 2025, General Mills reported earnings per share (EPS) of $1, exceeding the estimated $0.959. This positive EPS result highlights the company's ability to manage costs and drive profitability despite challenges. However, the revenue of approximately $4.84 billion fell short of the estimated $4.96 billion, reflecting the impact of economic concerns and reduced consumer spending on snacks.

General Mills has revised its guidance, anticipating a decline in organic sales for fiscal year 2025. This adjustment is due to heightened competition from more affordable private label brands and a challenging macroeconomic environment. The persistently high cost of living has further impacted consumer spending, leading to a reduction in the company's annual sales forecast.

The fiscal 2025 third-quarter results revealed that organic net sales fell short of expectations, primarily due to unexpected retailer inventory challenges and a slowdown in the snacking categories. Despite these setbacks, General Mills experienced positive market share trends in its Pet, Foodservice, and International segments, indicating areas of improvement and potential growth opportunities.

General Mills' financial metrics provide insight into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 12.93 and a price-to-sales ratio of about 1.67. The enterprise value to sales ratio is around 2.29, while the enterprise value to operating cash flow ratio is approximately 12.72. The earnings yield is about 7.73%, and the debt-to-equity ratio is approximately 1.58. The current ratio is around 0.92, indicating the company's ability to cover short-term liabilities with short-term assets.