General Mills (GIS) Stock Forecast & Price Target

General Mills has experienced positive financial momentum, benefiting from pantry-loading dynamics during COVID-19 and successfully implementing multiple price increases over the last three years as consumer resilience persisted amid inflationary pressures. The company's pet segment, despite a slight decline in organic growth, outperformed expectations, and there is an optimistic outlook for a reacceleration in growth from its core business, particularly driven by innovation and premiumization strategies. Additionally, the potential for margin improvements through restructuring and increased consumer demand for snacks and at-home eating further supports a favorable outlook for General Mills’s financial performance.

General Mills faces a negative outlook stemming from a lowered organic growth estimate for the third quarter to -3.1%, coupled with a forecasted decline in EPS to $0.96. The company reported inventory headwinds and a challenging environment within the packaged food segment, as illustrated by a decrease in dollar sales for two consecutive quarters and insights from peers indicating ongoing difficulties. Furthermore, international operations are underperforming, with a reported organic growth of -3% and reduced sell-through momentum, leading to revised earnings projections for fiscal years 2025 and 2026.