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Shares of General Mills (GIS +2.64%) are down around 30% over the past year. That's way worse than the average consumer staples stock, which is up nearly 10% over the same span. Wall Street is very downbeat on General Mills right now. While no analyst cut its rating on the company after it reported fiscal first-quarter 2027 earnings, only three analysts rate it a buy.

But if history is any guide, the food maker will eventually get back on track. Here's why you may want to buy it despite Wall Street's negative view.

Image source: Getty Images.

What's wrong with General Mills?
From a big-picture perspective, General Mills is dealing with the same basic issues as every other consumer staples company. Consumer buying habits are changing, inflation is causing consumers to tighten their belts, and inflation is increasing company costs. It is a very difficult period, and General Mills has been struggling.

For example, in the first quarter of fiscal 2027, the company's sales fell 3%, and its organic sales were flat. Still, that's actually an improvement from 2026, when the company's sales fell 5%, and organic sales were off by 2%. But it wasn't enough of a change to get Wall Street analysts back on board, with Bank of America (BAC +0.50%) and Evercore ISI actually cutting their price targets.

That said, there was some good news in the quarter. For example, the company's food service and international businesses benefited from sales growth in the quarter. Meanwhile, management highlights that flat organic sales growth suggests the business is stabilizing overall. But it would be hard to argue that the company isn't still struggling. However, that's not the worst thing in the world for long-term dividend investors.

$33.43+$0.86 (+2.64%)

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General Mills is a survivor
The simple truth is that no company as long-established as General Mills, which traces its history back to the mid-1800s, can avoid hard times. The real question for long-term investors is: how does a company like General Mills handle hard times? The answer is by adjusting.

In fact, fiscal 2026 was a very big transition year for the food maker. It realized that its pricing was out of line with peers and consumer spending levels, and it cut prices. That was a key reason why the year was so bad, financially speaking. The truth is, despite the weak top line, General Mills' fiscal first-quarter 2027 results were stronger than it expected. In addition, the company has been working to reduce costs and modernize its brands to better meet consumer taste preferences. These are all of the things you would expect a well-run company to do.

General Mills isn't likely to go out of business anytime soon. The real risk is the dividend, noting that adjusted fiscal first-quarter 2027 earnings of $0.75 per share leads to a payout ratio of roughly 80%, given its $0.61 per share dividend. That's a little high, which is why the dividend is being held steady while the company works through this difficult period.

GIS Dividend data by YCharts

That's a dividend warning sign, but one that needs to be taken with a grain of salt. General Mills has held the dividend steady before during difficult periods and resumed increases after the trouble has passed. Right now, the company is focusing on reducing leverage and adjusting its business to the current environment. But according to management, the dividend remains a key focus. Given the history here, it is probably worth giving management the benefit of the doubt.

General Mills is paying you well to wait
The truth is, General Mills isn't going to turn its business around overnight. You should be prepared to make a long-term commitment if you buy it today. However, with a 7.3% yield, you are getting paid very well to wait. And while the payout ratio is a bit high, there is still wiggle room before a cut is likely to be on the table. The one caveat is that a new CEO will take over at the start of 2027. However, that CEO is a 27-year veteran of General Mills, so it is likely that the company's approach won't change much, and neither will its commitment to its dividend.

One of the great challenges for a veteran business is staying relevant through the years. General Mills, anchored by a clutch of familiar food brands like Cheerios and Chex cereals and Häagen-Dazs ice cream, is a bit out of tune with current consumer tastes. That's affecting the company's results and, relatedly, investor sentiment.

In September, an earnings report showing declines in key fundamentals, and a CEO appointment that some took as a discouraging, don't-rock-the-boat move, exacerbated the situation. General Mills' stock price fell by almost 22% that month.

Image source: Getty Images.

Not very tastyGeneral Mills unveiled its first quarter of fiscal 2027 results on the morning of Sept. 23, and they fell into the good news/bad news category. The good was that the company notched a double beat on analyst estimates, with net sales of $4.4 billion and net income not under generally accepted accounting principles (non-GAAP, or adjusted) of $0.75 per share.

The bad news is that both core fundamentals were down year over year, not least because each of the company's three U.S. business units posted sales declines. On top of that, it reaffirmed its full-year 2027 guidance: net sales are likely to slip again, with management forecasting a 1.5% decline to a 0.5% increase over the 2026 result. As for the bottom-line estimate, adjusted earnings per share (EPS) are predicted to land at $3 to $3.20. That compares unfavorably with fiscal 2026's $3.55.

Several analysts adjusted their takes on General Mills after earnings. Apparently, the ones investors took to heart were those featuring price target cuts. This was the case with the prominent Bank of America (BAC +0.04%) Securities, whose analyst Peter Galbo reduced his fair value assessment to $40 per share from $43. He also maintained his lukewarm neutral rating on the stock. Bernstein SocGen's Alexia Howard shaved $1 off her price target to land at $30 per share while keeping her underperform (sell, in other words) recommendation intact.

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New boss, same old worriesOn the last day of the month, General Mills announced it had selected a new CEO to succeed outgoing chief Jeff Harmening. The new boss will be Dana McNabb, a 27-year veteran of the company who currently serves as COO; she'll take up the position on Jan. 1 of next year.

In a well-performing company, investors often take such a promotion from within as a comforting sign that management doesn't want to mess with success. The perception is different in a struggling business, as few people are eager to see more of the same. We won't know if McNabb will be different and/or innovative as a leader until she starts leading, so those worries are understandable.

As is that month's sell-off. After all these years, with the healthy-eating trend in force, General Mills still seems reluctant to lean into it meaningfully. Its current strategy of focusing on its eight "core brands," such as Pillsbury, indicates a continuing resistance to change, in my view. As an investor, if I were looking at food industry stocks, I'd probably wouldn't pick this one as a buy.

MarketBeat Week in Review – 09/21 - 09/25General Mills NYSE: GIS Chairman and Chief Executive Officer Jeff Harmening told shareholders at the company’s 98th annual meeting that fiscal 2026 ended with fourth-quarter results in line with expectations and improving volume trends, household penetration and innovation. He said the company is aiming for stronger sales and earnings growth in fiscal 2027 after a challenging prior year marked by slower category growth, a pressured consumer backdrop and higher costs of generating volume.

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Harmening said General Mills reduced everyday prices on roughly two-thirds of its North America retail portfolio during fiscal 2026 as consumers remained value-conscious. The company also improved share performance in North America retail, North America pet and North America foodservice, while its international business delivered strong sales and operating-profit growth, he said.

Portfolio changes and fiscal 2027 priorities The Case for Buying High-Yield General Mills Just StrengthenedThe company continued reshaping its portfolio during fiscal 2026, completing the divestiture of its U.S. yogurt business and announcing divestitures of its Brazil business, which has since closed, and its mainland China Häagen-Dazs Shops business. Harmening said the moves will concentrate General Mills on categories and geographies where it sees its strongest long-term opportunities for profitable growth.

For fiscal 2027, the company outlined three priorities:

Strengthen organic sales growth through more compelling consumer experiences. Create funding for growth through cost savings, process simplification, efficiency efforts and supply-chain redesign. Maintain disciplined capital allocation through cash generation, business reinvestment, dividend support and debt reduction. General Mills Is a 5-Star Turnaround Play for Buy and Hold InvestorsHarmening said the company’s “remarkable experiences” framework evaluates brands across product, packaging, brand communication, omnichannel execution and value. Planned innovation and renovation will focus on consumer benefits including protein and fiber, bold flavors, indulgence and more humanized pet-food offerings.

Examples cited by Harmening included Honey Nut Cheerios protein cereal, improved Häagen-Dazs Belgian chocolate ice cream, Annie’s Fiber Pals fruit snacks and Blue Buffalo Love Made Fresh dog food. He said first-quarter fiscal 2027 results, reported one week before the meeting, represented an “encouraging start” with improved top-line performance supported by product innovation and renovation.

$3 billion cost-savings target General Mills expects to generate approximately $3 billion in cost savings from fiscal 2027 through fiscal 2030 through its holistic margin management program, transformation initiative and other actions. Harmening said the company expects about $750 million of savings in fiscal 2027.

About $2 billion of the multiyear target is expected to come from holistic margin management, while the transformation initiative is expected to provide the remaining $1 billion. Harmening said the company is using digital tools in its supply chain, including AI-driven demand forecasting, manufacturing optimization and logistics scheduling. The transformation program will be focused largely on the supply chain, including capacity utilization, network design, innovation speed, packaging flexibility and e-commerce capabilities.

Addressing competition from private-label and smaller brands, Harmening said the company’s earlier pricing actions helped address value gaps and “stunted” private-label share growth. He said General Mills has increased the pace of new-product innovation by roughly 50% over the past several years and improved its market-share position in most of its top North America retail categories, as well as in foodservice and international.

Preliminary shareholder voting results General Counsel and Corporate Secretary Karen Wilson Thissen said preliminary results indicated that shareholders approved all five management proposals. Those included the election of 12 directors, an advisory vote on executive compensation, ratification of KPMG as independent auditor, officer exculpation provisions permitted under Delaware law and a federal forum provision for Securities Act claims.

Stephen W. Sanger was recognized for his board service and did not stand for re-election.

Preliminary voting also indicated that shareholder proposals concerning human-rights disclosures and pesticide-reduction disclosures did not receive majority support. However, a shareholder proposal related to blank-check preferred stock received majority support.

Matt Prescott, president and chief operating officer of The Accountability Board, said Institutional Shareholder Services and Glass Lewis had recommended support for the blank-check preferred-stock proposal. Thissen said General Mills’ board opposed the measure, arguing that its existing authority to issue cumulative preference stock had never been used for anti-takeover purposes and that restricting the authority could limit capital-structure and strategic flexibility.

The board also opposed the proposals seeking reports on the effectiveness of human-rights due diligence and regenerative-agriculture outcomes, including pesticide reduction. Thissen said the company already provides disclosures through its Global Responsibility Report and Slavery and Human Trafficking Statement, and that requiring pesticide-use tracking could add cost and complexity for farmers.

Final voting results, including votes received before the meeting’s adjournment, are expected to be reported in a Form 8-K filing with the Securities and Exchange Commission within four business days.

About General Mills (NYSE:GIS)General Mills, Inc is a global food company that manufactures and markets branded consumer food products. Its portfolio includes cereals, snacks, refrigerated and shelf-stable meals, baking products, yogurt, and pet food.

The company's brands include Cheerios, Betty Crocker, Pillsbury, Nature Valley, Old El Paso, Yoplait, Blue Buffalo, and Häagen-Dazs in markets where it owns or licenses the brand. General Mills sells its products through grocery stores, mass merchants, convenience stores, e-commerce channels, restaurants, and other foodservice providers.

General Mills traces its history to the Minneapolis Milling Company, founded in 1856, and adopted the General Mills name in 1928.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in General Mills Right Now?Before you consider General Mills, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and General Mills wasn't on the list.

While General Mills currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

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General Mills NYSE: GIS is working on a turnaround and nearing its inflection point. Its Q1 results for fiscal year 2027 (FY2027) were lackluster, but investors must remember this was against tough comp, with a significant divestiture in the numbers.

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General Mills sold its yogurt business to focus on core growth opportunities and operational efficiency, positioning itself to sustain long-term growth. The key point is that the inflection point is here now and reflected in the stock’s price.

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Internals reveal the impact of divestiture and turnaround efforts. While North America Retail contracted by 7% (400 basis points due to yogurt), it was the only segment to show weakness. North America Pet wasn't strong, but flat results are better than contraction and a more solid foundation to build upon.

More importantly, areas of strength, such as North America Foodservice, are expanding, and companywide organic sales were flat, with only the yogurt business needing to slip out of the math for growth to return. As it stands, the company is optimistic, forecasting potential for the inflection to positive organic growth by year’s end.

General Mills Dividend Safe in FY2027, Safer in FY2028General Mills' dividend faces headwinds but appears reliable for FY2027. The payout ratio is getting high, but forecasted earnings cover it, as does the expected annual cash flow, which matters most. The biggest risk to the dividend is stalled growth, but it will likely return by the end of FY2028, mitigating the risk. In this scenario, the dividend growth outlook is more of a tailwind than not, providing a future catalyst to lift price action and accelerate price recovery. Until then, investors buying in late September can lock in an approximate 6.9% dividend yield at historically low prices, more than double the pace of core inflation.

Institutional holdings reflect confidence in General Mills' long-term value, and the group's activity aligns with a technical stock-price bottom. Institutions own more than 75% of the stock and have been accumulating in 2026, ramping activity into early Q3, as shown by MarketBeat data. Trading volume has steadily ramped up this year, reaching record levels as GIS shares hit historically low prices.

The Q3 institutional activity spike also suggests downside is limited in late Q3 and Q4. The likely outcome is that GIS shares trend sideways, if not higher, over the next two to three quarters while the market waits for systemwide growth to reenter the picture. Analysts are a more pressing concern, with consensus pegged at Reduce. The caveat is that bearish bias is minimal, only 30%, and the late-August/early-September aligns with a market bottom. It includes reaffirmed bullish ratings and higher price targets, confirming the low-$30s as a price floor.

General Mills Clears Hurdle, Reaffirms GuidanceGeneral Mills had a tough quarter with sales in its core market contracting, even on an adjusted basis. However, net revenue of $4.4 billion beat consensus by a slim margin, as did margins. GAAP margins contracted by high double digits, but include the impact of yogurt; adjusted margins contracted by low single digits, leaving earnings down a low-teens amount versus last year.

Key details include $397 million in net income and the expectation that full-year results will outpace expectations. Guidance was reaffirmed, expecting flat to slightly negative organic sales and $3.10 in adjusted earnings per share, 3 cents more than analysts had hoped.

Balance sheet highlights raise some red flags, with cash, total assets, and equity down from last year, but the risks are minimal. The company is using its balance sheet to help sustain the dividend until the business turnaround gains visible traction, but it has the capacity to do so. Mitigating factors include reduced liabilities and flat debt, which leave the cash flow relatively unimpaired, though diminished.

And another catalyst is brewing: share buybacks. General Mills paused buybacks to conserve cash but will likely resume them as cash flow improves. No buybacks were made in Q1 FY2027, but the average count is down about 1%.

This year’s risks include the impact of GLP-1’s. GLP-1s are changing how Americans eat: they are snacking and eating less overall, and are more focused on protein. To respond, General Mills is shifting with the industry to offer more protein-rich, nutrient-dense options. The company is also leaning into technology to improve efficiencies, including return on invested dollars. Investors should watch dividend coverage and the risk of dividend cuts, which will increase as the year progresses; the key question is whether the company can make its expected pivot.

Should You Invest $1,000 in General Mills Right Now?Before you consider General Mills, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and General Mills wasn't on the list.

While General Mills currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.

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Both Hormel and General Mills paid out more in dividends than they earned last year, but that shared screener flag tells a completely different story at each company. One dividend sits on solid footing while the other is quietly running…

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Hormel Foods (NYSE:HRL | HRL Price Prediction) and General Mills (NYSE:GIS) are both long-tenured packaged-food dividend payers, and in each company’s most recently completed fiscal year, dividends paid to shareholders exceeded reported net income. That shared headline looks alarming on a screener, but it means something very different at each company.

Hormel’s Cash Cushion Is Getting Thin For fiscal 2025, ended October 31, 2025, Hormel generated $845.3 million of operating cash flow, spent $310.9 million on capex, and paid $633.2 million in dividends against net income of $478.2 million. After capex and dividends, almost nothing remains. The fiscal fourth quarter posted a net loss of $56.2 million. In the quarter ended July 31, 2026, dividends of $161 million far exceeded the quarter’s $59.5 million net income. The latest raise moved the quarterly payout from $0.29 to $0.2925, a token bump defending a 60-year streak rather than sharing growth. Shares trade near $20.13, down 17.6% over the past year.

General Mills Took an Earnings Hit, Not a Cash Hit General Mills reported a fiscal 2026 loss that looks worse in headline terms. For the year ended May 31, 2026, net income was −$85.3 million, but operating cash flow was $2.166 billion against capex of $539.9 million and dividends of $1.315 billion. The payout was comfortably funded out of cash. The loss, concentrated in the fiscal fourth quarter (net loss of −$2.007 billion), reflected $2.8 billion in non-cash charges, including $1.75 billion of goodwill and intangible impairments largely tied to the North America Pet segment and a $1.032 billion non-cash valuation loss on the planned Brazil divestiture. Non-cash means no dollars left the building. The 127th consecutive year of uninterrupted payments continues, with shares recently at $35.70.

When a Payout Ratio Above 100% Still Passes the Cash Test Reported net income includes impairments and valuation losses that never touch the checking account. Cash funds the dividend from operating cash flow after capex, and coverage is what matters. A payout ratio above 100% is a prompt to open the cash flow statement.

Coverage at a Glance Metric (most recent fiscal year) HRL (FY ended Oct 31, 2025) GIS (FY ended May 31, 2026) Operating cash flow $845.3M $2,166M Capital expenditures $310.9M $539.9M Dividends paid $633.2M $1,315.3M Net income $478.2M −$85.3M For Hormel, watch whether operating cash flow recovers enough to clear capex plus the dividend with room to spare. For General Mills, monitor whether strong cash generation holds and whether the fourth-quarter loss proves to be a one-off tied to non-cash marks rather than a trend.

Which Dividend Actually Has a Cash Problem Hormel has a cash-level problem. General Mills’ loss was an accounting event; operating cash comfortably funded the payout. Hormel’s earnings dropped, its cushion narrowed to almost nothing, and the raise shrank to a fraction of a cent. That is where improvement is needed before confidence returns. (A shrinking cushion behind a token raise is one of the seven warning signs we cataloged in a free dividend trap guide.)

Contact [email protected] for any questions or corrections.

23.9.2026 15:08, GIS

Potravinářská společnost General Mills reportovala výsledky hospodaření za první kvartál fiskálního roku 2027, který skončil 30. srpna 2026. Tržby i očištěný zisk na akcii za kvartál nepatrně překonaly odhady analytiků, přičemž organické tržby zůstaly meziročně beze změny při očekávání poklesu o 1,79 %. Společnost zároveň potvrdila celoroční výhled pro fiskální rok 2027.

Výsledky společnosti General Mills (GIS) za 1Q FY 2027   1Q FY 2027 Konsensus 1Q 2027 1Q FY 2026 Tržby (mld. USD) 4,39 4,35 4,52 Čistý zisk (mld. USD) 0,40 -- 1,20 Očištěný zisk na akcii (EPS, USD/akcie) 0,75 0,72 0,86 Výsledky 1Q Tržby meziročně klesly o 2,8 % na 4,39 mld. USD, přičemž 3 p. b. připadají na negativní dopad akvizic a divestic, zejména odprodeje jogurtového byznysu v USA. Organické tržby zůstaly meziročně beze změny, což je lepší než očekávání analytiků (-1,79 %).

Organický objem prodejů klesl o 1 p. b., přičemž trh očekával pokles o 2,67 p. b.

V segmentu maloobchodu v Severní Americe organické tržby klesly o 3 % při odhadech -3,3 %, v segmentu stravovacích služeb v Severní Americe vzrostly o 4 %, přičemž odhad byl +0,58 %. V mezinárodním segmentu rovněž vzrostly o 4 % při konsensu +2,29 %. Organické tržby segmentu krmiv pro zvířata v Severní Americe zůstaly beze změny.

Očištěná hrubá marže klesla o 90 bazických bodů na 33,3 % při očekávání 33 %.

Provozní zisk ve výši 634 mil. USD klesl meziročně o 63 %, a to především kvůli zisku ve výši 1 mld. USD z odprodeje jogurtového byznysu před rokem. Očištěný provozní zisk dosáhl 634 mil. USD a při konstantních měnových kurzech se snížil o 11 %. Očištěná provozní marže klesla o 130 bazických bodů na 14,4 %.

Společnost 2. září 2026, tedy po skončení prvního kvartálu, dokončila odprodej svého byznysu v Brazílii.

Výhled na rok 2027 Firma potvrdila celoroční výhled pro fiskální rok 2027. Očekává, že růst kategorií bude odpovídat nedávným trendům a zůstane pod dlouhodobým historickým tempem kvůli přetrvávajícímu náročnému prostředí na straně spotřebitelů.

Vývoj organických tržeb v rozmezí -1,5 % až +0,5 %, přičemž odhad byl -0,47 %. Pokles očištěného provozního zisku při konstantních měnových kurzech o 8 až 13 %. Očištěný zisk na akcii v rozmezí 3,00 až 3,20 USD. Konverze volného hotovostního toku kolem 95 % očištěného zisku po zdanění. Návrat kapitálu akcionářům Společnost v prvním kvartálu fiskálního roku 2027 vyplatila na dividendách celkem 330 mil. USD. Zpětné odkupy vlastních akcií v kvartálu firma neprováděla, zatímco o rok dříve odkoupila akcie v objemu 500 mil. USD.

Komentář CEO „Do fiskálního roku 2027 jsme vstoupili povzbudivě. Tržby se zlepšují díky silnějším produktovým inovacím a vylepšením zaměřeným na přínosy, které spotřebitelé dnes hledají. V nestabilním prostředí zároveň postupujeme disciplinovaně, včetně dosahování nejlepších úspor nákladů v odvětví díky programu Holistic Margin Management a naší globální transformační iniciativě. Na základě našeho pokroku a probíhajících kroků jsme i nadále přesvědčeni, že dokážeme splnit náš výhled na fiskální rok 2027,“ uvedl generální ředitel Jeff Harmening.

Akcie General Mills Akcie společnosti General Mills (GIS) zaznamenávají v předburzovní fázi obchodování růst o 0,48 % na 35,62 USD.

Zdroj: General Mills, Bloomberg

Michal Bárta, Fio banka, a.s.

Key Takeaways General Mills' fiscal 2026 organic net sales fell 2% as it continued reshaping its portfolio. Whitebridge added 6 points to North America Pet sales growth, while Tiki Cat grew double digits. La Tiara, Ghost and Wanchai Ferry target Mexican food, performance nutrition and Asian snacking. General Mills, Inc. (GIS - Free Report) is reshaping its business mix as it seeks to improve organic sales growth after fiscal 2026 organic net sales declined 2%. The portfolio actions combine divestitures with investment in premium pet food and smaller brands positioned in growing demand spaces.

Portfolio pruning has been a visible part of that shift. General Mills completed the U.S. yogurt divestiture in fiscal 2026 after selling its Canada yogurt business in fiscal 2025 while also announcing agreements to divest its Brazil business and Haagen-Dazs shops business in mainland China. The net impact of divestitures and acquisitions was a 6-point headwind to fiscal 2026 reported net sales, while the North American yogurt divestitures provided a favorable product-mix benefit to the gross margin.

The company is also increasing its exposure to premium pet food. Its $1.4-billion acquisition of Whitebridge Pet Brands’ North American premium cat feeding and pet treating business contributed 6 points to North America Pet’s fiscal 2026 reported sales growth. Tiki Cat has delivered sustained double-digit retail sales growth since the acquisition, although North America Pet organic net sales declined 3% for the year.

Beyond acquisitions, General Mills is using smaller brands to participate in emerging growth spaces. La Tiara targets authentic Mexican food, Ghost addresses performance nutrition, and Wanchai Ferry extends the portfolio into Asian snacking. These premium offerings are intended to support positive price and mix as North America Retail moves into new growth spaces.

Taken together, the portfolio shift is directing more attention toward premium pet food and newer demand spaces while exiting selected businesses. Still, fiscal 2026 organic sales declines show that portfolio reshaping has not yet translated into broad-based organic growth. The shared materials do not quantify how much these moves will contribute to future organic sales, making a stronger growth profile an objective rather than an established outcome.

GIS Stock Price Performance, Valuation & EstimatesThe Zacks Rank #2 (Buy) stock has risen 10.3% over the past three months, outpacing the industry’s growth of 4.3%.

GIS Price Performance Versus Industry
Image Source: Zacks Investment Research

From a valuation standpoint, GIS trades at a forward price-to-earnings ratio of 11.84, below the industry’s average of 14.39.

GIS Valuation Compared to Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for General Mills’ earnings per share (EPS) implies a year-over-year decline of 13.5%, while the consensus mark for the next fiscal year EPS suggests 4.9% growth.

Image Source: Zacks Investment Research

Other Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently carries a Zacks Rank #2. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 63.9%, respectively, from the year-ago figures.

Laird Superfood, Inc. (LSF - Free Report) is a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products. LSF currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS suggests growth of 188.2% and 104%, respectively, from the year-ago figures. LSF delivered an earnings surprise of 100% in the last reported quarter.

Key Takeaways General Mills plans its biggest Life Protection Formula innovation year yet in fiscal 2027. Love Made Fresh retail sales rose about 80% in Q4, helped by new packaging and better in-store execution. Wilderness drove more than half of North America Pet's fiscal 2026 declines, prompting a broader revamp. General Mills, Inc. (GIS - Free Report) is stepping up efforts around Blue Buffalo as it seeks to strengthen its dog-feeding business while expanding initiatives in fresh pet food. The fiscal 2027 plan spans product innovation, packaging, benefit-led communication and e-commerce execution, with particular attention on the core Life Protection Formula line, Love Made Fresh and Wilderness.

The effort comes against a challenging backdrop for North America Pet. Organic net sales declined 3% in the fourth quarter of fiscal 2026, while all-channel retail sales fell approximately 1%, with the gap largely reflecting changes in retailer inventory. For the full year, organic net sales were also down 3%. However, the segment held dollar share in dog feeding and cat feeding, which together represented approximately 80% of retail sales.

For Blue Buffalo's core Life Protection Formula line, General Mills plans clearer communication around ingredient superiority, a refreshed head-to-head campaign, stronger social-first messaging, updated packaging and new pack sizes suited to pet parents shopping online. Fiscal 2027 is also expected to be the biggest year of innovation yet for the Life Protection Formula line.

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The company is also building on Love Made Fresh. Retail sales for the line accelerated roughly 80% in the fourth quarter, helped by a new stand-up resealable pouch and improved in-store execution. The fiscal 2027 focus is on driving trial and repeat purchases through better on-shelf availability and sharper natural superior nutrition messaging.

Wilderness remains another area of focus after accounting for more than half of North America Pet's declines in fiscal 2026. GIS is renovating packaging, optimizing offerings for e-commerce and emphasizing protein-forward innovation and communication. Together, these actions show a broad effort to address weaknesses in dog feeding while strengthening Blue Buffalo's offerings across core and fresh-food formats.

Shares of this Zacks Rank #3 (Hold) company have tumbled 12% year to date against the industry’s growth of 6.5%.

Better-Ranked Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.

Darling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Darling’s current fiscal-year sales calls for 11.5% growth from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

It has been about a month since the last earnings report for General Mills (GIS - Free Report) . Shares have lost about 3.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is General Mills due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for General Mills, Inc. before we dive into how investors and analysts have reacted as of late.

General Mills Q4 Earnings Beat Estimates, Organic Sales Flat Y/YGeneral Mills reported fourth-quarter fiscal 2026 adjusted earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 82 cents. The bottom line also increased 27% year over year on a constant-currency (cc) basis, driven by elevated adjusted operating profit, a reduced adjusted effective tax rate and fewer shares outstanding, partially offset by higher net interest expense.

Net sales increased 1% to $4,609.6 million, benefiting from a 7-point contribution from the 53rd week and a 1-point benefit from foreign currency exchange, partially offset by a 7-point headwind from the net impact of divestitures and acquisitions. On an organic basis, sales were broadly unchanged, including a 1-point benefit from favorable trade expense timing. The top line also beat the Zacks Consensus Estimate of $4,604 million.

The adjusted gross margin increased 150 basis points (bps), reaching 34.2% of net sales, supported by favorable pricing and mix, with higher input costs partially offsetting these gains. Favorable trade expense timing contributed a 60 bps benefit to adjusted gross margin. We expected an adjusted gross margin expansion of 50 bps. General Mills’ adjusted operating profit increased 13% in constant currency to $705 million, driven by elevated adjusted gross profit dollars, including a 7-point benefit from favorable trade expense timing. Adjusted operating margin improved 160 bps to 15.3%. We expected an adjusted operating margin of 14.3% for the quarter.

Decoding GIS’ Segmental PerformanceNorth America Retail: Revenues in the segment were $2,466.6 million, down 4% year over year, including a 10-point headwind from the divestiture and a 7-point benefit from the 53rd week. Organic net sales were essentially unchanged from the prior year, while Nielsen-measured retail sales declined 4%. The difference was primarily cused by a previously anticipated 2-point benefit from trade expense timing and favorable changes in retailer inventory levels.

North America Pet: Revenues rose 4% year over year to $702.4 million, benefiting by 7-points from the 53rd week. Sales grew at a double-digit rate in cat food, increased at a low-single-digit rate in dog food and declined slightly in pet treats. Organic net sales declined 3%, while all-channel retail sales fell approximately 1%. The difference was largely attributable to changes in retailer inventory levels.

North America Foodservice: Revenues were $574.6 million, which decreased 1%, including a 7-point headwind from the U.S. yogurt divestiture and a 6-point benefit from the 53rd week. Organic net sales were essentially flat, including a 2-point headwind from index pricing on bakery flour.

International: Revenues in the segment were $858.4 million, up 16% year over year, benefiting from an 8-point contribution from the 53rd week and a 5-point benefit from foreign currency exchange. Organic net sales grew 3%, driven by strong performance in Brazil, Europe, India and China.

What to Expect From GIS in Fiscal 2027?General Mills expects consumer demand to remain challenging in fiscal 2027 and plans to drive growth through product innovation focused on health, flavor, indulgence and pet humanization trends. The company aims to support profitability with at least $750 million in cost savings, although earnings will face headwinds from the absence of the prior year's 53rd week, higher incentive expenses and the impact of recent divestitures.

The company has provided its full-year fiscal 2027 outlook. Organic net sales are projected to range from a decline of 1.5% to growth of 0.5%. On a constant-currency basis, adjusted operating profit is expected to be down 8% to 13% from the fiscal 2026 base of $2.8 billion. Adjusted earnings per share are expected to be between $3.00 and $3.20, with an immaterial impact from foreign currency exchange. The company also expects free cash flow conversion to be approximately 95% of adjusted after-tax earnings.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -10.82% due to these changes.

VGM ScoresCurrently, General Mills has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise General Mills has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Key Takeaways General Mills says fiscal 2027 will focus on innovation, renovation and sharper brand execution.General Mills targets $3B in cumulative cost savings through fiscal 2030 to fund reinvestment.General Mills expects organic sales from down 1.5% to up 0.5% and adjusted EPS of $3.00-$3.20. General Mills, Inc. (GIS - Free Report) used its fourth-quarter call to argue that fiscal 2026 was a reset year, not an endpoint. Management said pricing work is largely complete, and fiscal 2027 will shift toward innovation, renovation and sharper brand execution.

That message came with a more aggressive productivity plan. Executives paired a modest organic sales outlook with a new $3 billion cumulative cost-savings target through fiscal 2030, framing efficiency as the funding source for both growth investment and margin protection.

GIS Shifts From Pricing to InnovationChairman and CEO Jeffrey Harmening said the company entered fiscal 2026 focused on restoring competitiveness through base pricing. On the call, he described that work as largely finished and said the next step is to make the rest of General Mills’ marketing and product activity work harder.

Harmening tied the fiscal 2027 playbook to product benefits consumers are willing to pay for, including protein, fiber, bold flavors and indulgence. He cited Cheerios, Blue Buffalo, Häagen-Dazs and Annie’s as brands where the company sees room to improve remarkability and mix.

The shift matters because management is not counting on a better consumer backdrop to do the heavy lifting. Executives repeatedly said growth improvement should come from company-controlled levers rather than a rebound in categories.

General Mills Sees a Tough Consumer Holding OnDana McNabb, COO and group president of North America Retail and North America Pet, said the company expects shoppers to remain pressured in fiscal 2027. She said consumers are buying more on promotion, making channel and pack-size tradeoffs, and keeping value at the center of purchase decisions.

McNabb added that categories slowed by about one point exiting the fourth quarter, and management is not assuming that trend reverses soon. Instead, the company is trying to pair better shelf pricing with premium benefits that can still command spending.

That backdrop helps explain the company’s fiscal 2027 guidance. General Mills expects organic net sales to range from down 1.5% to up 0.5%, with adjusted operating profit down 13% to down 8% in constant currency and adjusted EPS of $3.00 to $3.20.

GIS Keeps Totino’s and Pet in FocusAnalyst questions repeatedly returned to market share, and management did not dodge the weak spots. Harmening said Totino’s was a bigger issue than Wilderness dog feeding because of its size, while McNabb said Totino’s suffered from poor execution on price-pack architecture and insufficient innovation.

Management pointed to early fixes, including stronger merchandising, new frozen snack launches and better product architecture. McNabb said June trends had already improved in hot snacks and pizza, though she stopped short of calling four weeks a durable trend.

In Pet, the issue was less consumption than inventory flow. McNabb said channel sales were up 1% for the year, but organic sales lagged because faster-growing customers such as e-commerce and mass carry less inventory, and she said a low-single-digit inventory headwind is built into fiscal 2027 assumptions.

General Mills Pairs Savings With ReinvestmentThe biggest new strategic number from the call was the $3 billion cost-savings target through fiscal 2030. About $2 billion is expected from Holistic Margin Management, while the remaining $1 billion is tied to transformation and other efficiency work.

McNabb said the supply chain is a particular focus, arguing it was built for a different operating environment and now needs more speed and packaging flexibility. Management said details are still in early design, but the fiscal 2027 savings goal is at least $750 million.

Chief financial officer Kofi Bruce said HMM is meant to fund reinvestment into product and marketing, not just protect margins. That framing makes the productivity push central to the growth plan rather than a separate cost-cutting story.

GIS Delivers a Beat, but GAAP Was DistortedFor the quarter, General Mills reported adjusted EPS of $0.95 and revenue of $4.61 billion. That topped the Zacks Consensus Estimate of $0.82 and $4.6 billion, respectively, with EPS surprise of 15.9% and revenue surprise of 0.1%.

Those adjusted results aligned with management’s own expectations, but GAAP figures were heavily distorted. The company posted a loss per share of $3.74, driven by $1.8 billion in goodwill and brand impairment charges and a roughly $1.0 billion valuation loss tied to the planned sale of the Brazil business.

That split between adjusted and reported results shaped the tone of the call. Executives spent little time defending the quarter itself and much more time arguing that the underlying business, especially pricing, household penetration and base volume, is on firmer footing entering fiscal 2027.

General Mills Leaves a Measured But Assertive ToneThe closing message from management was disciplined rather than upbeat. Harmening said the company is on a path to restore profitable growth, but the near-term setup still includes inflation, lapping the 53rd week and divestiture-related headwinds.

Even so, executives sounded more assertive in Q&A than in the headline numbers. Their stance was that fiscal 2027 improvement depends on better execution, better innovation and better mix, not relief from the consumer environment.

Zacks Signals Remain Cautious on GISGIS carries a Zacks Rank #4 (Sell), alongside a Value Score of A, Growth Score of F, Momentum Score of D and VGM Score of D. Under Zacks’ framework, Style Scores work best as a complement to the Zacks Rank, and stronger combinations are generally Rank #1 (Strong Buy) or #2 (Buy) stocks with A or B style grades. You can see the complete list of today’s Zacks #1 Rank stocks here.

That leaves a mixed signal. The value profile stands out, but Zacks’ own guidance says investors should not buy stocks with a Zacks Rank #4 or #5 (Strong Sell) even if some Style Scores are favorable, and the rank can change as estimate revisions move after the quarter.

MINNEAPOLIS--(BUSINESS WIRE)--General Mills, Inc. (NYSE: GIS) today reported results for its fourth quarter and fiscal year ended May 31, 2026. Fiscal 2026 was a 53-week year, with the extra week falling in the fourth quarter.

“We finished fiscal 2026 on a positive note, delivering fourth-quarter adjusted results that met our expectations while continuing to strengthen our foundation to position General Mills for long-term success,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “With our price investment work behind us, our focus in fiscal 2027 is to improve our topline growth by driving a step change in the remarkability of our brands. This includes a significant increase in innovation and renovation centered on the benefits that matter most to today’s consumers.

“At the same time, we are laser focused on increasing our efficiency to help offset elevated inflation, fund our growth investments, and generate stronger earnings and cash flow,” Harmening continued. “We’re targeting $3 billion in cumulative cost savings by fiscal 2030, primarily through our Holistic Margin Management productivity program and our global transformation initiative, with $750 million expected to be delivered in fiscal 2027.

“With plans to strengthen our remarkability and a sharp focus on efficiency and capital discipline, I’m confident we’re on the path to restoring profitable growth and driving shareholder value over the long term.”

Guided by its Accelerate strategy, General Mills is investing in its brands to restore profitable organic net sales growth, with initiatives that touch all elements of the company’s Remarkable Experience Framework: product, packaging, brand communication, omnichannel execution, and consumer value. With a stronger foundation of brand remarkability, General Mills believes it is better positioned to deliver stronger, more sustainable, and more profitable growth and value creation over the long term.

Fourth Quarter Results Summary

Net sales were up 1 percent to $4.6 billion, including a 7-point benefit from the 53rd week, a 1-point benefit from foreign currency exchange, and a 7-point headwind from the net impact of divestitures and acquisitions. Organic net sales were flat, including a 1-point benefit from favorable trade expense timing. Gross margin increased 240 basis points to 34.8 percent of net sales, driven by favorable net price realization and mix and favorable mark-to-market effects, partially offset by higher input costs. Adjusted gross margin increased 150 basis points to 34.2 percent of net sales, driven by favorable net price realization and mix, partially offset by higher input costs. Favorable trade expense timing was a 60-basis point benefit to adjusted gross margin in the quarter. Operating loss totaled $2.1 billion compared to operating profit of $504 million a year ago. The change in operating profit was due primarily to $1.8 billion in non-cash goodwill and brand intangible asset charges driven primarily by an increase in discount rates (please see Note 3 below for more information on these items) and a $1.0 billion non-cash pre-tax valuation loss related to the planned divestiture of the Brazil business (please see Note 2 below for more information on this item). Operating profit margin was (45.4) percent compared to 11.1 percent a year ago. Adjusted operating profit of $705 million was up 13 percent in constant currency, driven by higher adjusted gross profit dollars including a 7-point benefit from favorable trade expense timing. Adjusted operating profit margin increased 160 basis points to 15.3 percent. Net loss attributable to General Mills totaled $2.0 billion and diluted loss per share was $3.74 compared to net earnings of $294 million and diluted EPS of $0.53 last year, driven primarily by lower operating profit. Adjusted diluted EPS of $0.95 was up 27 percent in constant currency, driven primarily by higher adjusted operating profit, a lower adjusted effective tax rate, and lower net shares outstanding, partially offset by higher net interest expense. Full Year Results Summary

Net sales were down 5 percent to $18.4 billion, including a 6-point headwind from the net impact of divestitures and acquisitions, a 2-point benefit from the 53rd week, and a 1-point benefit from foreign currency exchange. Organic net sales were down 2 percent, due in part to weaker consumer sentiment and significant volatility that weighed on category volume growth and drove a higher share of consumer purchases on promotion. Gross margin was down 100 basis points to 33.6 percent of net sales and adjusted gross margin was down 100 basis points to 33.5 percent of net sales, both driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the North American Yogurt divestitures. Operating profit of $886 million was down 73 percent, driven primarily by the goodwill and brand intangible asset charges, the valuation loss, and lower gross profit dollars in fiscal 2026, partially offset by a $1.0 billion gain on the yogurt divestitures (please see Note 2 for more information on this item). Operating profit margin was 4.8 percent compared to 17.0 percent a year ago. Adjusted operating profit of $2.8 billion was down 16 percent in constant currency, driven primarily by lower adjusted gross profit dollars. Adjusted operating profit margin was down 190 basis points to 15.3 percent. Net loss attributable to General Mills totaled $88 million and diluted loss per share was $0.16 compared to net earnings of $2.3 billion and diluted EPS of $4.10 a year ago, driven primarily by lower operating profit, a higher effective tax rate, and lower after-tax earnings from joint ventures, partially offset by lower net shares outstanding. Adjusted diluted EPS of $3.55 was down 16 percent in constant currency, driven primarily by lower adjusted operating profit. Operating Segment Results

The following items impacted the comparability of year-to-date financial results between fiscal 2025 and fiscal 2026: the divestiture of the U.S. Yogurt business in the first quarter of fiscal 2026, the 53rd week in the fourth quarter of fiscal 2026, the divestiture of the Canada Yogurt business in the third quarter of fiscal 2025, and the acquisition of the North American Whitebridge Pet Brands business in the third quarter of fiscal 2025. Tables may not foot due to rounding. Components of Fiscal 2026 Reported Net Sales Growth

Fourth Quarter

Volume

Price/Mix

Foreign

Exchange

Reported

Net Sales

North America Retail

(13) pts

9 pts

--

(4)%

North America Pet

1 pt

3 pts

--

4%

North America Foodservice

--

(1) pt

--

(1)%

International

8 pts

3 pts

5 pts

16%

Total

(4) pts

4 pts

1 pt

1%

Full Year

North America Retail

(16) pts

5 pts

--

(11)%

North America Pet

--

5 pts

--

6%

North America Foodservice

(4) pts

(2) pts

--

(6)%

International

3 pts

2 pts

4 pts

9%

Total

(8) pts

2 pts

1 pt

(5)%

  Components of Fiscal 2026 Organic Net Sales Growth

Fourth Quarter

Organic

Volume

Organic

Price/Mix

Organic

Net Sales

Foreign

Exchange

Acquisitions & Divestitures

53rd Week

Reported

Net Sales

North America Retail

(2) pts

2 pts

Flat

--

(10) pts

7 pts

(4)%

North America Pet

(6) pts

3 pts

(3)%

--

--

7 pts

4%

North America Foodservice

(2) pts

2 pts

Flat

--

(7) pts

6 pts

(1)%

International

1 pt

2 pts

3%

5 pts

--

8 pts

16%

Total

(2) pts

2 pts

Flat

1 pt

(7) pts

7 pts

1%

Full Year

North America Retail

(1) pt

(2) pts

(3)%

--

(9) pts

1 pt

(11)%

North America Pet

(5) pts

2 pts

(3)%

--

6 pts

2 pts

6%

North America Foodservice

(2) pts

1 pt

(1)%

--

(7) pts

2 pts

(6)%

International

2 pts

1 pt

3%

4 pts

--

2 pts

9%

Total

(1) pt

(1) pt

(2)%

1 pt

(6) pts

2 pts

(5)%

  Fiscal 2026 Segment Operating Profit Growth

Fourth Quarter

% Change

as Reported

% Change in

Constant Currency

North America Retail

7%

7%

North America Pet

14%

14%

North America Foodservice

22%

22%

International

81%

72%

Total

13%

13%

Full Year

North America Retail

(20)%

(20)%

North America Pet

Flat

Flat

North America Foodservice

(6)%

(6)%

International

96%

90%

Total

(13)%

(13)%

  North America Retail Segment
Fourth-quarter net sales for General Mills’ North America Retail segment were down 4 percent to $2.5 billion, including a 10-point headwind from divestitures and a 7-point benefit from the 53rd week. Organic net sales essentially matched year-ago results while Nielsen-measured retail sales were down 4 percent, with the gap driven by a previously expected 2-point benefit from trade expense timing as well as a benefit from changes in retailer inventory. Segment operating profit of $506 million increased 7 percent as reported and in constant currency, driven by favorable net price realization and mix and lower selling, general, and administrative (SG&A) expenses, partially offset by lower volume, including the impact of the U.S. yogurt divestiture, and higher input costs. Favorable trade expense timing was a 9-point benefit to operating profit growth in the quarter.

For the full year, North America Retail segment net sales were down 11 percent to $10.6 billion, including a 9-point headwind from divestitures and a 1-point benefit from the 53rd week. Organic net sales were down 3 percent. Increased consumer value, innovation, and product news drove strong pound competitiveness, with the segment holding or gaining pound share in 65 percent of its top 10 U.S. categories. Segment operating profit of $2.2 billion was down 20 percent as reported and in constant currency, due primarily to lower volume, including the impact of the yogurt divestitures, and higher input costs, partially offset by favorable net price realization and mix and lower SG&A expenses.

North America Pet Segment
Fourth-quarter net sales for the North America Pet segment were up 4 percent to $702 million, including a 7-point benefit from the 53rd week. Net sales were up double digits for cat food, up low-single digits for dog food, and down low-single digits for pet treats. Organic net sales were down 3 percent and all-channel retail sales were down approximately 1 percent, with the 2-point gap driven largely by changes in retailer inventory. Segment operating profit of $160 million was up 14 percent as reported and in constant currency, driven primarily by favorable net price realization and mix and lower input costs, partially offset by higher SG&A expenses, including a double-digit increase in media investment.

For the full year, North America Pet segment net sales were up 6 percent to $2.6 billion, including a 6-point benefit from the North American Whitebridge Pet Brands acquisition and a 2-point benefit from the 53rd week. Organic net sales were down 3 percent and lagged all-channel retail sales growth by approximately 4 points. The segment held dollar share in dog feeding and cat feeding, which represented approximately 80 percent of its retail sales. Segment operating profit of $499 million essentially matched year-ago levels, with higher input costs and higher SG&A expenses, including a double-digit increase in media investment, offset by favorable net price realization and mix and higher volume.

North America Foodservice Segment
Fourth-quarter net sales for the North America Foodservice segment were down 1 percent to $575 million, including a 7-point headwind from the U.S. yogurt divestiture and a 6-point benefit from the 53rd week. Organic net sales essentially matched year-ago results, including a 2-point headwind from index pricing on bakery flour. Segment operating profit increased 22 percent to $101 million, driven primarily by Holistic Margin Management (HMM) cost savings and favorable net price realization and mix, partially offset by input cost inflation.

For the full year, North America Foodservice net sales were down 6 percent to $2.2 billion, including a 7-point headwind from the yogurt divestitures and a 2-point benefit from the 53rd week. Organic net sales were down 1 percent, including a 2-point headwind from index pricing on bakery flour. The segment held or gained dollar share in nearly 90 percent of its priority businesses, driven by gains in healthcare, lodging, recreation, and college and university channels. Segment operating profit was down 6 percent to $333 million, driven by the impact of the yogurt divestitures.

International Segment
Fourth-quarter net sales for the International segment increased 16 percent to $858 million, including an 8-point benefit from the 53rd week and a 5-point benefit from foreign currency exchange. Organic net sales were up 3 percent, driven by growth in Brazil, Europe, India, and China. Segment operating profit of $61 million was up 81 percent as reported and up 72 percent in constant currency, driven by favorable net price realization and mix and higher volume, partially offset by higher input costs and higher SG&A expenses.

For the full year, International net sales were up 9 percent to $3.0 billion, including a 4-point benefit from foreign currency exchange and a 2-point benefit from the 53rd week. Organic net sales were up 3 percent. The segment held or gained dollar share in 45 percent of its priority businesses. Segment operating profit of $189 million was up 96 percent as reported and up 90 percent in constant currency, driven by favorable net price realization and mix and higher volume, partially offset by higher input costs and higher SG&A expenses.

Joint Venture Summary
Fourth-quarter constant-currency net sales were down 3 percent for Cereal Partners Worldwide (CPW) and up 12 percent for Häagen-Dazs Japan (HDJ). Combined after-tax loss from joint ventures totaled $18 million in the quarter, compared to a loss of $6 million in the prior year, driven primarily by the company’s share of losses related to the sale of certain assets at CPW. For the full year, after-tax loss from joint ventures totaled $76 million compared to earnings of $58 million a year ago, driven primarily by the company’s share of a non-cash goodwill impairment charge at CPW as well as losses related to the sale of certain assets at CPW.

Other Income Statement Items
Full-year unallocated corporate items totaled $402 million net expense in fiscal 2026 compared to $396 million net expense a year ago (please see Note 4 below for more information on these expenses). Excluding mark-to-market valuation effects and other items affecting comparability, unallocated corporate items totaled $398 million net expense this year compared to $331 million net expense a year ago.

Restructuring, transformation, impairment, and other exit costs totaled $3.0 billion of net expense in fiscal 2026 compared to $78 million of net expense a year ago (please see Note 3 below for more information on these charges).

Net interest expense totaled $539 million in fiscal 2026 compared to $524 million a year ago, driven primarily by the 53rd week. The effective tax rate was 102.2 percent in fiscal 2026 compared to 20.2 percent last year (please see Note 6 below for more information on our effective tax rate), driven primarily by the non-cash goodwill charge in fiscal 2026 that was not deductible for tax purposes. The adjusted effective tax rate was 21.1 percent compared to 20.6 percent a year ago, driven primarily by unfavorable earnings mix by jurisdiction in fiscal 2026, partially offset by certain non-recurring tax benefits in fiscal 2026.

Cash Flow Generation and Cash Returns
Cash provided by operating activities totaled $2.2 billion in fiscal 2026 compared to $2.9 billion a year ago, driven primarily by changes in accounts payable, other current assets, and other current liabilities. Capital investments totaled $540 million compared to $625 million a year ago. Full-year operating cash flow conversion was not meaningful as a percent of after-tax earnings and free cash flow conversion was 85 percent of adjusted after-tax earnings. Dividends paid decreased 2 percent to $1.3 billion, driven by lower average shares outstanding. The company’s share repurchase activity in fiscal 2026 totaled $500 million compared to $1.2 billion in share repurchases a year ago. Average diluted shares outstanding decreased 4 percent in fiscal 2026 to 538 million.

Targeting $3 Billion in Cost Savings by Fiscal 2030
In an effort to help address input cost inflation, fund growth investments, and deliver accelerated profit and cash flow growth, General Mills announced that it expects to generate $3 billion in cumulative cost savings in the four years through fiscal 2030. Roughly $2 billion of this target is expected to be generated through the company’s ongoing HMM productivity program, equating to annual savings of approximately 4 percent of cost of goods sold. The remaining $1 billion is expected to be generated by the company’s global transformation initiative and other cost efficiency efforts, including redesigning the supply chain network, further streamlining business processes, and driving improvement across other elements of its cost base. These efforts will create a more agile and efficient structure that is better fit for future growth. General Mills expects to generate at least $750 million in total savings in fiscal 2027 toward this $3 billion target.

Dividend Declared
The General Mills board of directors declared a quarterly dividend at the prevailing rate of $0.61 per share, payable August 3, 2026, to shareholders of record July 10, 2026. General Mills and its predecessor company have paid dividends without interruption for 127 years.

Fiscal 2027 Outlook
General Mills’ top priority is to restore profitable organic net sales growth over the long term by improving the remarkability of its brands. For fiscal 2027, the company expects category growth to be consistent with recent trends and below its long-term historical growth rate, driven by a continued challenging consumer backdrop. With its base price investment actions completed in fiscal 2026, the company expects to shift its focus in fiscal 2027 to product innovation and renovation news centered on the benefits that matter most to today’s consumers, including better-for-you benefits like protein and fiber, bold flavors, fun and indulgence, and pet humanization. This approach is expected to further strengthen brand remarkability and drive improved organic net sales performance in fiscal 2027.

On the bottom line, General Mills expects to generate at least $750 million in savings from HMM, its global transformation initiative, and other cost savings actions in fiscal 2027, which are expected to offset input cost inflation and sustained investments in brand remarkability. In addition to those factors, the company expects headwinds of approximately 9 points on operating profit and 11 points on EPS in fiscal 2027 from lapping the 53rd week in fiscal 2026, normalizing corporate incentive expense, and the impact of fiscal 2026 divestitures.

Based on the above assumptions, General Mills outlined its full-year financial targets² for fiscal 2027:

Organic net sales are expected to range between down 1.5 percent and up 0.5 percent. Adjusted operating profit is expected to be down 13 percent to down 8 percent in constant currency from the base of $2.8 billion reported in fiscal 2026. Adjusted diluted earnings are expected to be between $3.00 and $3.20 per share, including an immaterial impact from foreign currency exchange. Free cash flow conversion is expected to be approximately 95 percent of adjusted after-tax earnings. The net impact of divestitures, foreign currency exchange, and the 53rd week is expected to reduce full-year reported net sales growth by approximately 2 percent. Foreign currency exchange is not expected to have a material impact on adjusted operating profit growth. 2 Financial targets are provided on a non-GAAP basis because certain information necessary to calculate comparable GAAP measures is not available. Please see Note 7 to the Consolidated Financial Statements below for discussion of the unavailable information.

General Mills will issue pre-recorded management remarks today, July 1, 2026, at approximately 6:30 a.m. Central time (7:30 a.m. Eastern time) and will hold a live, webcasted question and answer session beginning at 8:00 a.m. Central time (9:00 a.m. Eastern time). The pre-recorded remarks and the webcast will be made available at www.generalmills.com/investors.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and assumptions. These forward-looking statements, including the statements under the captions “Targeting $3 Billion in Cost Savings by Fiscal 2030” and “Fiscal 2027 Outlook,” and statements made by Mr. Harmening, are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales, earnings, and cost savings could be affected by a variety of factors, including: imposed and threatened tariffs by the United States and its trading partners; disruptions or inefficiencies in the supply chain; competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, tariffs, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of critical accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, energy, and transportation; effectiveness of restructuring, transformation and cost saving initiatives; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The Company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances.

# # #

      Consolidated Statements of (Loss) Earnings and Supplementary Information
GENERAL MILLS, INC. AND SUBSIDIARIES
(In Millions, Except per Share Data) 

  Fiscal Year

2026

% Change

2025

% Change

2024

(Unaudited)

Net sales

$

18,424.6

(5

)

%

$

19,486.6

(2

)

%

$

19,857.2

Cost of sales

12,228.9

(4

)

%

12,753.6

(1

)

%

12,925.1

Selling, general, and administrative expenses

3,388.5

(2

)

%

3,445.8

6

%

3,259.0

Divestitures gain, net

(1,049.4

)

NM

(95.9

)

NM

—

Restructuring, transformation, impairment, and other exit costs

2,970.8

NM

78.3

(68

)

%

241.4

Operating profit

885.8

(73

)

%

3,304.8

(4

)

%

3,431.7

Benefit plan non-service income

(58.3

)

7

%

(54.4

)

(28

)

%

(75.8

)

Interest, net

538.6

3

%

524.2

9

%

479.2

Earnings before income taxes and after-tax (loss) earnings from joint ventures

405.5

(86

)

%

2,835.0

(6

)

%

3,028.3

Income taxes

414.3

(28

)

%

573.7

(3

)

%

594.5

After-tax (loss) earnings from joint ventures

(76.5

)

NM

57.6

(32

)

%

84.8

Net (loss) earnings, including earnings attributable to noncontrolling interests

(85.3

)

(104

)

%

2,318.9

(8

)

%

2,518.6

Net earnings attributable to noncontrolling interests

2.3

(90

)

%

23.7

8

%

22.0

Net (loss) earnings attributable to General Mills

$

(87.6

)

(104

)

%

$

2,295.2

(8

)

%

$

2,496.6

(Loss) earnings per share — basic

$

(0.16

)

(104

)

%

$

4.12

(5

)

%

$

4.34

(Loss) earnings per share — diluted

$

(0.16

)

(104

)

%

$

4.10

(5

)

%

$

4.31

Dividends per share

$

2.44

2

%

$

2.40

2

%

$

2.36

Fiscal Year

Comparisons as a % of net sales

2026

Basis Pt

Change

2025

Basis Pt

Change

2024

Gross margin

33.6

%

(100

)

34.6

%

(30

)

34.9

%

Selling, general, and administrative expenses

18.4

%

70

17.7

%

130

16.4

%

Operating profit

4.8

%

(1,220

)

17.0

%

(30

)

17.3

%

Net (loss) earnings attributable to General Mills

(0.5

)%

(1,230

)

11.8

%

(80

)

12.6

%

Fiscal Year

Adjusted comparisons as a % of net sales (a):

2026

Basis Pt

Change

2025

Basis Pt

Change

2024

Adjusted gross margin

33.5

%

(100

)

34.5

%

(30

)

34.8

%

Adjusted operating profit

15.3

%

(190

)

17.2

%

(90

)

18.1

%

Adjusted net earnings attributable to General Mills

10.4

%

(160

)

12.0

%

(120

)

13.2

%

  (a) See Note 7 for a reconciliation of these measures not defined by generally accepted accounting principles (GAAP). 

  See accompanying notes to consolidated financial statements. 

        Consolidated Statements of (Loss) Earnings and Supplementary Information
GENERAL MILLS, INC. AND SUBSIDIARIES
(Unaudited) (In Millions, Except per Share Data) 

  Quarter Ended

May 31,

2026

May 25,

2025

% Change

Net sales

$

4,609.6

$

4,556.2

1

%

Cost of sales

3,006.1

3,082.2

(2

)

%

Selling, general, and administrative expenses

888.1

894.3

(1

)

%

Restructuring, transformation, impairment, and other exit costs

2,808.0

75.7

NM

Operating (loss) profit

(2,092.6

)

504.0

NM

Benefit plan non-service income

(12.2

)

(12.8

)

(5

)

%

Interest, net

151.5

139.7

8

%

(Loss) earnings before income taxes and after-tax loss from joint ventures

(2,231.9

)

377.1

NM

Income taxes

(240.4

)

69.1

NM

After-tax loss from joint ventures

(17.6

)

(6.0

)

193

%

Net (loss) earnings, including earnings attributable to noncontrolling interests

(2,009.1

)

302.0

NM

Net (loss) earnings attributable to noncontrolling interests

(1.2

)

8.0

(115

)

%

Net (loss) earnings attributable to General Mills

$

(2,007.9

)

$

294.0

NM

(Loss) earnings per share – basic

$

(3.74

)

$

0.53

NM

(Loss) earnings per share – diluted

$

(3.74

)

$

0.53

NM

Quarter Ended

Comparisons as a % of net sales

May 31,

2026

May 25,

2025

Basis Pt

Change

Gross margin

34.8

%

32.4

%

240

Selling, general, and administrative expenses

19.3

%

19.6

%

(30

)

Operating (loss) profit

NM

11.1

%

NM

Net (loss) earnings attributable to General Mills

NM

6.5

%

NM

Quarter Ended

Adjusted comparisons as a % of net sales (a):

May 31,

2026

May 25,

2025

Basis Pt

Change

Adjusted gross margin

34.2

%

32.7

%

150

Adjusted operating profit

15.3

%

13.7

%

160

Adjusted net earnings attributable to General Mills

11.0

%

8.8

%

220

  (a) See Note 7 for a reconciliation of these measures not defined by generally accepted accounting principles (GAAP). 

  See accompanying notes to consolidated financial statements. 

        Operating Segment Results and Supplementary Information
GENERAL MILLS, INC. AND SUBSIDIARIES
(In Millions) 

  Fiscal Year

2026

% Change

2025

% Change

2024

(Unaudited)

Net sales:

North America Retail

$

10,571.8

(11

)

%

$

11,907.0

(5

)

%

$

12,473.4

International

3,043.8

9

%

2,797.8

2

%

2,746.5

North America Pet

2,613.3

6

%

2,470.8

4

%

2,375.8

North America Foodservice

2,169.5

(6

)

%

2,300.9

2

%

2,258.7

Total segment net sales

$

18,398.4

(6

)

%

$

19,476.5

(2

)

%

$

19,854.4

Corporate and other

26.2

159

%

10.1

NM

2.8

Total net sales

$

18,424.6

(5

)

%

$

19,486.6

(2

)

%

$

19,857.2

Operating profit:

North America Retail

$

2,189.0

(20

)

%

$

2,729.9

(11

)

%

$

3,080.4

International

188.7

96

%

96.4

(23

)

%

125.2

North America Pet

498.8

—

%

501.0

3

%

485.9

North America Foodservice

333.0

(6

)

%

355.4

13

%

315.5

Total segment operating profit

$

3,209.5

(13

)

%

$

3,682.7

(8

)

%

$

4,007.0

Unallocated corporate items

402.3

2

%

395.5

18

%

333.9

Divestitures gain, net

(1,049.4

)

NM

(95.9

)

NM

—

Restructuring, transformation, impairment, and other exit costs

2,970.8

NM

78.3

(68

)

%

241.4

Operating profit

$

885.8

(73

)

%

$

3,304.8

(4

)

%

$

3,431.7

  See accompanying notes to consolidated financial statements. 

        Operating Segment Results and Supplementary Information
GENERAL MILLS, INC. AND SUBSIDIARIES
(Unaudited) (In Millions) 

  Quarter Ended

May 31,

2026

May 25,

2025

% Change

Net sales:

North America Retail

$

2,466.6

$

2,559.8

(4

)

%

International

858.4

738.9

16

%

North America Pet

702.4

675.2

4

%

North America Foodservice

574.6

579.4

(1

)

%

Total segment net sales

$

4,602.0

$

4,553.3

1

%

Corporate and other

7.6

2.9

162

%

Total net sales

$

4,609.6

$

4,556.2

1

%

Operating (loss) profit:

North America Retail

$

506.4

$

473.8

7

%

International

61.0

33.7

81

%

North America Pet

160.0

140.1

14

%

North America Foodservice

101.3

83.1

22

%

Total segment operating profit

$

828.7

$

730.7

13

%

Unallocated corporate items

113.3

151.0

(25

)

%

Restructuring, transformation, impairment, and other exit costs

2,808.0

75.7

NM

Operating (loss) profit

$

(2,092.6

)

$

504.0

NM

  See accompanying notes to consolidated financial statements. 

        Consolidated Balance Sheets
GENERAL MILLS, INC. AND SUBSIDIARIES
(In Millions, Except Par Value) 

May 31, 2026

May 25, 2025

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

453.8

$

363.9

Receivables

1,646.8

1,795.9

Inventories

1,917.9

1,910.8

Prepaid expenses and other current assets

599.8

464.7

Assets held for sale

—

740.4

Total current assets

4,618.3

5,275.7

Land, buildings, and equipment

3,443.4

3,632.6

Goodwill

14,122.4

15,622.4

Other intangible assets

6,716.9

7,081.4

Other assets

1,115.7

1,459.0

Total assets

$

30,016.7

$

33,071.1

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

3,729.5

$

4,009.5

Current portion of long-term debt

1,053.6

1,528.4

Notes payable

68.4

677.0

Other current liabilities

1,472.8

1,624.0

Liabilities held for sale

449.8

18.4

Total current liabilities

6,774.1

7,857.3

Long-term debt

12,416.0

12,673.2

Deferred income taxes

2,265.8

2,100.8

Other liabilities

1,180.2

1,228.6

Total liabilities

22,636.1

23,859.9

Stockholders’ equity:

Common stock, 754.6 shares issued, $0.10 par value

75.5

75.5

Additional paid-in capital

1,200.9

1,218.8

Retained earnings

20,514.9

21,917.8

Common stock in treasury, at cost, shares of 220.9 and 212.2

(11,900.6

)

(11,467.9

)

Accumulated other comprehensive loss

(2,522.3

)

(2,545.0

)

Total stockholders’ equity

7,368.4

9,199.2

Noncontrolling interests

12.2

12.0

Total equity

7,380.6

9,211.2

Total liabilities and equity

$

30,016.7

$

33,071.1

  See accompanying notes to consolidated financial statements. 

        Consolidated Statements of Cash Flows
GENERAL MILLS, INC. AND SUBSIDIARIES
(In Millions) 

  Fiscal Year

2026

2025

(Unaudited)

Cash Flows - Operating Activities

Net (loss) earnings, including earnings attributable to noncontrolling interests

$

(85.3

)

$

2,318.9

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

555.2

539.0

After-tax loss (earnings) from joint ventures

76.5

(57.6

)

Distributions of earnings from joint ventures

39.0

44.6

Stock-based compensation

79.4

91.7

Deferred income taxes

203.2

(120.9

)

Pension and other postretirement benefit plan contributions

(31.7

)

(30.8

)

Pension and other postretirement benefit plan costs

(23.7

)

(12.7

)

Divestitures gain, net

(1,049.4

)

(95.9

)

Restructuring, transformation, impairment, and other exit costs

2,897.7

74.3

Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures

(478.3

)

192.4

Other, net

(16.4

)

(24.8

)

Net cash provided by operating activities

2,166.2

2,918.2

Cash Flows - Investing Activities

Purchases of land, buildings, and equipment

(539.9

)

(625.3

)

Acquisitions, net of cash acquired

—

(1,419.3

)

Proceeds from divestitures

1,830.2

241.8

Investments in affiliates, net

(31.8

)

13.3

Proceeds from disposal of land, buildings, and equipment

4.8

1.1

Other, net

(5.1

)

(6.5

)

Net cash provided (used) by investing activities

1,258.2

(1,794.9

)

Cash Flows - Financing Activities

Change in notes payable

(608.2

)

667.1

Issuance of long-term debt

2,005.8

2,354.9

Payment of long-term debt

(2,823.3

)

(1,300.0

)

Repurchase of Class A limited membership interests in General Mills Cereals, LLC

—

(252.8

)

Proceeds from common stock issued on exercised options

0.5

43.0

Purchases of common stock for treasury

(500.3

)

(1,202.9

)

Dividends paid

(1,315.3

)

(1,338.7

)

Distributions to noncontrolling interest holders

(2.1

)

(21.6

)

Other, net

(72.1

)

(129.1

)

Net cash used by financing activities

(3,315.0

)

(1,180.1

)

Effect of exchange rate changes on cash and cash equivalents

18.4

2.7

Increase (decrease) in cash and cash equivalents

127.8

(54.1

)

Cash and cash equivalents - beginning of year

363.9

418.0

Cash and cash equivalents - end of year (includes $37.9 million of cash classified as held for sale as of May 31, 2026)

$

491.7

$

363.9

Cash flow from changes in current assets and liabilities, excluding the effects of acquisitions and divestitures:

Receivables

$

12.9

$

(79.0

)

Inventories

(82.2

)

(18.5

)

Prepaid expenses and other current assets

(147.7

)

80.8

Accounts payable

(186.2

)

86.7

Other current liabilities

(75.1

)

122.4

Changes in current assets and liabilities

$

(478.3

)

$

192.4

  See accompanying notes to consolidated financial statements. 

        GENERAL MILLS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

  (1)

The accompanying Consolidated Financial Statements of General Mills, Inc. (we, us, our, General Mills, or the Company) have been prepared in accordance with accounting principles generally accepted in the United States for annual and interim financial information. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature.

Our fiscal year ends on the last Sunday in May. Fiscal year 2026 consists of 53 weeks, while fiscal years 2025 and 2024 consisted of 52 weeks. Our India business is on an April fiscal year end. In addition, the consolidated results of certain recent acquisitions are reported on a one-month lag. Please see Note 2 for more information.

  (2)

During the fourth quarter of fiscal 2026, we entered into a definitive agreement to sell our business in Brazil to Café Três Corações S.A. (3corações) for a base price of R$800 million, subject to certain specified deductions and customary post-closing adjustments. The sale is anticipated to close in calendar 2026, subject to regulatory approvals and other customary closing conditions. As a result, we have classified relevant assets and liabilities (the disposal group) associated with our Brazil business as held for sale in our Consolidated Balance Sheets as of May 31, 2026. Additionally, in the fourth quarter of fiscal 2026, we recorded a $1,032 million non-cash pre-tax loss to value the disposal group at the lower of its carrying value or fair value less costs to sell based on estimated net proceeds, which was based on Level 2 inputs in the fair value hierarchy and includes the impact of accumulated foreign currency translation losses that will be reclassified to earnings upon sale. We recorded the loss in restructuring, transformation, impairment, and other exit costs in our Consolidated Statements of (Loss) Earnings, which consisted of a $753 million reserve against the assets held for sale and a $265 million accrual of the remaining difference between the carrying amount and the estimated net proceeds within liabilities held for sale. We will monitor changes in the estimated net proceeds that could further impact the value of the disposal group and the loss on sale.

  In fiscal 2025 and 2026, we divested our North American yogurt businesses (Divestitures). During the first quarter of fiscal 2026, we completed the sale of our United States yogurt business to Groupe Lactalis S.A. and recorded a pre-tax gain of $1,046 million. During the third quarter of fiscal 2025, we completed the sale of our Canada yogurt business to Sodiaal International and recorded a pre-tax gain of $96 million. In the first quarter of fiscal 2026, we recorded a sale price adjustment that resulted in an $8 million increase to the pre-tax gain.

  During the third quarter of fiscal 2025, we acquired NX Pet Holding, Inc., representing Whitebridge Pet Brands’ North American premium cat feeding and pet treating business, for a purchase price of $1.4 billion (Acquisition). We financed the transaction with cash on hand and new debt. We consolidated Whitebridge Pet Brands into our Consolidated Balance Sheets and recorded goodwill of $1,087 million, an indefinite-lived intangible asset for the Tiki Pets brand totaling $289 million, and a finite-lived customer relationship asset of $31 million. The goodwill is included in the North America Pet segment and is not deductible for tax purposes. The pro forma effects of this acquisition were not material. The consolidated results are reported in our North America Pet operating segment on a one-month lag. In fiscal 2026, we recorded a $32 million decrease to goodwill, primarily related to adjustments to certain purchase accounting liabilities upon finalization of income tax returns recorded in the second quarter of fiscal 2026.

  During the fourth quarter of fiscal 2024, we acquired a pet food business in Europe for a purchase price of $434 million, net of cash acquired. During fiscal 2025, we paid $8 million related to a purchase price holdback after closing conditions were met. We financed the transaction with cash on hand. We consolidated the business into our Consolidated Balance Sheets and recorded goodwill of $318 million, an indefinite-lived brand intangible asset of $118 million, and a finite-lived customer relationship asset of $14 million. The goodwill is included in the International segment and is not deductible for tax purposes. The pro forma effects of this acquisition were not material. The consolidated results of the business are reported as part of our International operating segment on a one-month lag.

  (3)

Restructuring, transformation, and impairment charges are recorded in our Consolidated Statement of (Loss) Earnings as follows:

Quarter Ended

Fiscal Year

In Millions

May 31,

2026

May 25,

2025

2026

2025

2024

Restructuring, transformation, impairment, and other exit costs

$

2,808.0

$

75.7

$

2,970.8

$

78.3

$

241.4

Cost of sales

6.0

8.2

19.4

9.2

17.6

Total restructuring, transformation, and impairment charges

2,814.0

83.9

2,990.2

87.5

259.0

In the second quarter of fiscal 2026, we recorded a $53 million non-cash impairment charge related to our Uncle Toby’s brand intangible asset. 

Additionally, we identified a triggering event due to a sustained decline in market capitalization and stock price in the fourth quarter of fiscal 2026 reflecting heightened macroeconomic uncertainty and lower market multiples in our industry, which caused a related increase in our discount rates and required an interim impairment assessment. We performed the interim impairment assessment of our goodwill and other intangible assets as of May 31, 2026, and determined that the fair values of our North America Pet reporting unit and our Nudges and True Chews brand intangible assets no longer exceeded the carrying values of the respective assets, primarily driven by an increase in the discount rates. As a result, we recorded a $1,500 million non-cash goodwill impairment charge related to our North America Pet reporting unit and $250 million of non-cash impairment charges related to our Nudges and True Chews brand intangible assets, primarily driven by an increase in the discount rates. The $1,500 million goodwill impairment charge is not deductible for tax purposes.

  In fiscal 2024, we recorded a $117 million non-cash goodwill impairment charge related to our Latin America reporting unit and $103 million of non-cash impairment charges related to our Top Chews, True Chews, and EPIC brand intangible assets. 

  In fiscal 2026, we recorded a $1,032 million non-cash pre-tax valuation loss related to the planned divestiture of our Brazil business. Please see Note 2 for additional information. 

  In fiscal 2026, we approved a multi-year organizational initiative to increase the competitiveness of our supply chain. We expect to incur approximately $101 million of restructuring charges related to these actions, of which approximately $33 million will be cash. These charges are expected to consist of approximately $66 million of net asset write-offs and $35 million of other costs, including severance. We recognized $71 million of asset write-offs and $24 million of other costs in fiscal 2026. We expect these actions to be completed by the end of fiscal 2029. 

  (4)

Unallocated corporate expense totaled $113 million in the fourth quarter of fiscal 2026, compared to $151 million in the same period last year. We recorded a $36 million net decrease in expense related to the mark-to-market valuation of certain commodity positions and grain inventories in the fourth quarter of fiscal 2026, compared to an $8 million net increase in expense in the same period last year. In the fourth quarter of fiscal 2026, we also recorded $15 million of transaction costs, primarily related to the definitive agreements to sell our Brazil business, compared to $16 million of transaction costs related to the Divestitures in the fourth quarter of fiscal 2025. We recorded $6 million of restructuring charges in costs of sales in the fourth quarter of fiscal 2026, compared to $8 million of restructuring charges in costs of sales in the fourth quarter of fiscal 2025. Additionally, in the fourth quarter of fiscal 2026, certain compensation and benefits expenses increased compared to the same period last year, including the impact of the 53rd week. 

  Unallocated corporate expense totaled $402 million in fiscal 2026, compared to $396 million last year. In fiscal 2026, certain compensation and benefits expenses increased compared to fiscal 2025, including the impact of the 53rd week. We recorded $19 million of restructuring charges in cost of sales in fiscal 2026, compared to $9 million of charges in cost of sales in fiscal 2025. Additionally, we recorded a $48 million net decrease in expense related to the mark-to-market valuation of certain commodity positions and grain inventories in fiscal 2026, compared to a $16 million net decrease last year. In fiscal 2026, we also recorded $31 million of transaction costs, primarily related to the Divestitures and the definitive agreement to sell our Brazil business, compared to $49 million of transaction costs related to the Divestitures and the Acquisition last year. 

  (5)

Basic and diluted earnings per share (EPS) were calculated as follows: 

Quarter Ended

Fiscal Year

In Millions, Except per Share Data

May 31,

2026

May 25,

2025

2026

2025

2024

Net (loss) earnings attributable to General Mills

- as reported

$

(2,007.9

)

$

294.0

$

(87.6

)

$

2,295.2

$

2,496.6

Capital appreciation paid on Class A Interests in GMC (a)

—

(10.5

)

—

(10.5

)

—

Net (loss) earnings for EPS calculation

$

(2,007.9

)

$

283.5

$

(87.6

)

$

2,284.7

$

2,496.6

Average number of common shares - basic EPS

536.6

548.2

537.7

554.5

575.5

Incremental share effect from: (b) (c)

Stock options

—

0.6

—

1.2

1.8

Restricted stock units and performance share units

—

1.6

—

1.8

2.2

Average number of common shares - diluted EPS

536.6

550.4

537.7

557.5

579.5

(Loss) earnings per share — basic

$

(3.74

)

$

0.53

$

(0.16

)

$

4.12

$

4.34

(Loss) earnings per share — diluted

$

(3.74

)

$

0.53

$

(0.16

)

$

4.10

$

4.31

  (a) Please see Note 7 for additional information  (b) Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock method. 

(c) During fiscal 2026, we reported a net loss attributable to General Mills. Inclusion of dilutive shares would result in a lower loss per share. As a result, the dilutive shares are considered to be antidilutive and were excluded from the calculation of diluted EPS for fiscal 2026. 

  (6)

The effective tax rate for the fourth quarter of fiscal 2026 was 10.8 percent compared to 18.3 percent for the fourth quarter of fiscal 2025. The 7.5 percentage point decrease was primarily due to certain nonrecurring discrete tax benefits, partially offset by a non-deductible goodwill impairment charge and unfavorable earnings mix by jurisdiction in fiscal 2026. Our adjusted effective tax rate was 12.7 percent in the fourth quarter of fiscal 2026, compared to 19.2 percent in the same period last year (see Note 7 below for a description of our use of measures not defined by GAAP). The 6.5 percentage point decrease was primarily due to certain nonrecurring discrete tax benefits in fiscal 2026, partially offset by unfavorable earnings mix by jurisdiction in fiscal 2026.  

  The effective tax rate for fiscal 2026 was 102.2 percent compared to 20.2 percent in fiscal 2025. The 82.0 percentage point increase was primarily driven by a non-deductible goodwill impairment charge and unfavorable earnings mix by jurisdiction in fiscal 2026, partially offset by certain nonrecurring tax benefits in fiscal 2026. Our adjusted effective tax rate was 21.1 percent, compared to 20.6 percent in fiscal 2025 (see Note 7 below for a description of our use of measures not defined by GAAP). The 0.5 percentage point increase is primarily due to unfavorable earnings mix by jurisdiction in fiscal 2026, partially offset by certain nonrecurring tax benefits in fiscal 2026. 

  (7)

We have included measures in this release that are not defined by GAAP. We believe that these measures provide useful information to investors, and include these measures in other communications to investors. For each of these non-GAAP financial measures, we are providing below a reconciliation of the differences between the non-GAAP measure and the most directly comparable GAAP measure, an explanation of why we believe the non-GAAP measure provides useful information to investors, and any additional material purposes for which our management or Board of Directors uses the non-GAAP measure. These non-GAAP measures should be viewed in addition to, and not in lieu of, the comparable GAAP measure. 

  We provide organic net sales growth rates for our consolidated net sales and segment net sales. This measure is used in reporting to our Board of Directors and executive management and as a component of the Board of Directors’ measurement of our performance for incentive compensation purposes. We believe that organic net sales growth rates provide useful information to investors because they provide transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations, acquisitions, divestitures, and a 53rd fiscal week, when applicable, have on year-to-year comparability. A reconciliation of these measures to reported net sales growth rates, the relevant GAAP measures, are included in our Operating Segment Results above. 

  Certain measures in this release are presented excluding the impact of foreign currency exchange (constant-currency). To present this information, current period results for entities reporting in currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year. Therefore, the foreign currency impact is equal to current year results in local currencies multiplied by the change in the average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. We believe that these constant-currency measures provide useful information to investors because they provide transparency to underlying performance by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given volatility in foreign currency exchange markets. 

  Our fiscal 2027 outlook for organic net sales growth, constant-currency adjusted operating profit and adjusted diluted EPS, and free cash flow conversion are non-GAAP financial measures that exclude, or have otherwise been adjusted for, items impacting comparability, including the effect of foreign currency exchange rate fluctuations, restructuring and transformation charges, transaction and acquisition integration costs, acquisitions, divestitures, mark-to-market effects, and a 53rd week from the prior year. We are not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and commodity prices or the timing or impact of acquisitions, divestitures, and restructuring and transformation actions throughout fiscal 2027. The unavailable information could have a significant impact on our fiscal 2027 GAAP financial results. 

  For fiscal 2027, we currently expect: the net impact from foreign currency exchange rates (based on a blend of forward and forecasted rates and hedge positions), divestitures completed prior to fiscal 2027 and those expected to close in fiscal 2027, and a 53rd week from the prior year to decrease net sales growth by approximately 2 percent; foreign currency exchange rates to have an immaterial impact on adjusted operating profit and adjusted diluted EPS growth; and restructuring and transformation charges and transaction and acquisition integration costs related to actions previously announced to total approximately $80 million to $85 million. 

    Significant Items Impacting Comparability

Several measures below are presented on an adjusted basis. The adjustments are either items resulting from infrequently occurring events or items that, in management’s judgment, significantly affect the year-to-year assessment of operating results.

The following are descriptions of significant items impacting comparability of our results.

Goodwill and other intangible assets impairments
Non-cash goodwill and other intangible assets impairment charges related to our North America Pet reporting unit goodwill and our Nudges, Uncle Toby’s, and True Chews brand intangible assets in fiscal 2026. Non-cash impairment charges related to our Latin America reporting unit goodwill and our Top Chews, True Chews, and EPIC brand intangible assets in fiscal 2024. Please see Note 3.

Divestitures gain, net
Net divestitures gain primarily related to the sale of our United States yogurt business in fiscal 2026 and Canada yogurt business in fiscal 2025. Please see Note 2.

Valuation loss on held for sale business
Non-cash valuation loss related to the planned divestiture of our Brazil business recorded in fiscal 2026. Please see Note 2.

CPW asset impairments. losses, and restructuring charges
CPW non-cash goodwill impairment charge related to the Australian market, and other asset impairment charges and losses related to the sale of certain assets recorded in fiscal 2026. CPW impairment charges related to certain long-lived assets recorded in fiscal 2025. CPW restructuring charges related to previously announced actions recorded in fiscal 2024.

Restructuring and transformation charges
Restructuring and transformation charges related to supply chain actions and previously announced actions recorded in fiscal 2026. Restructuring and transformation charges related to global transformation actions and previously announced restructuring actions in fiscal 2025. Restructuring charges related to commercial strategy restructuring actions and previously announced restructuring actions in fiscal 2024. Please see Note 3.

Mark-to-market effects
Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items. Please see Note 4.

Transaction costs
Fiscal 2026 transaction costs primarily related to the sale of our United States yogurt business and the definitive agreement to sell our Brazil business. Fiscal 2025 transaction costs related to the sale of our North American yogurt businesses and the Whitebridge Pet Brands acquisition. Transaction costs primarily related to the acquisition of a pet food business in Europe in fiscal 2024. Please see Note 2.

Acquisition integration costs
Integration costs related to the Whitebridge Pet Brands acquisition in fiscal 2025 and the acquisition of a pet food business in Europe in fiscal 2024 recorded in fiscal 2026 and fiscal 2025. Integration costs primarily resulting from the acquisition of TNT Crust in fiscal 2024. Please see Note 2.

Investment activity, net
Valuation adjustments of certain corporate investments in fiscal 2026 and fiscal 2025. Valuation adjustments and the gain on sale of certain corporate investments in fiscal 2024. Please see Note 4.

Capital appreciation paid on GMC Class A Interests
Capital account appreciation attributable and paid to the third-party holder of GMC Class A Interests in fiscal 2025.

Project-related costs
Restructuring initiative project-related costs related to previously announced restructuring actions recorded in fiscal 2025 and fiscal 2024.

Legal recovery
Legal recovery recorded in fiscal 2024.

Product recall, net
Net recoveries recorded in fiscal 2024 related to the fiscal 2023 voluntary recall of certain international Häagen-Dazs ice cream products, net of recoveries.

Adjusted Operating Profit Growth and Related Constant-currency Growth Rate

This measure is used in reporting to our Board of Directors and executive management and as a component of the measurement of our performance for incentive compensation purposes. We believe that this measure provides useful information to investors because it is the operating profit measure we use to evaluate operating profit performance on a comparable year-to-year basis. The measure is evaluated on a constant-currency basis by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given the volatility in foreign currency exchange rates.

Our adjusted operating profit growth on a constant-currency basis is calculated as follows:

Quarter Ended

Fiscal Year

In Millions

May 31,

2026

May 25,

2025

Change

2026

2025

Change

Operating (loss) profit as reported

$

(2,092.6

)

$

504.0

NM

$

885.8

$

3,304.8

(73

)%

Goodwill and other intangible assets impairments

1,750.0

—

1,802.9

—

Divestitures gain, net

—

—

(1,049.4

)

(95.9

)

Valuation loss on held for sale business

1,031.8

—

1,031.8

—

Restructuring and transformation charges

32.2

83.9

155.5

87.5

Mark-to-market effects

(35.7

)

8.1

(48.4

)

(15.7

)

Transaction costs

14.8

16.2

31.3

49.1

Acquisition integration costs

2.9

6.7

9.5

13.9

Investment activity, net

2.0

3.4

(7.6

)

8.3

Project-related costs

—

0.1

—

0.5

Adjusted operating profit

$

705.4

$

622.5

13

%

$

2,811.5

$

3,352.6

(16

)%

Foreign currency exchange impact

1 pt

Flat

Adjusted operating profit growth, on a constant-currency basis

13

%

(16

)%

  Note: Table may not foot due to rounding. 

  For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. 

      Adjusted Diluted EPS and Related Constant-currency Growth Rate

This measure is used in reporting to our Board of Directors and executive management. We believe that this measure provides useful information to investors because it is the profitability measure we use to evaluate earnings performance on a comparable year-to-year basis.

The reconciliation of our GAAP measure, diluted EPS, to adjusted diluted EPS and the related constant-currency growth rates follows:

Quarter Ended

Fiscal Year

Per Share Data

May 31,

2026

May 25,

2025

Change

2026

2025

Change

Diluted (loss) earnings per share, as reported

$

(3.74

)

$

0.53

NM

$

(0.16

)

$

4.10

(104

)%

Goodwill and other intangible assets impairments

3.15

—

3.22

—

Valuation loss on held for sale business

1.45

—

1.45

—

Divestitures gain, net

—

—

(1.43

)

(0.15

)

CPW asset impairments, losses, and restructuring charges

0.06

0.03

0.28

0.04

Restructuring and transformation charges

0.04

0.11

0.22

0.12

Mark-to-market effects

(0.05

)

0.01

(0.07

)

(0.02

)

Transaction costs

0.02

0.03

0.04

0.07

Acquisition integration costs

0.01

0.01

0.01

0.02

Investment activity, net

—

—

(0.01

)

0.01

Capital appreciation paid on GMC Class A Interests

—

0.02

—

0.02

Adjusted diluted earnings per share (a)

$

0.95

$

0.74

28

%

$

3.55

$

4.21

(16

)%

Foreign currency exchange impact

1 pt

Flat

Adjusted diluted earnings per share growth, on a constant-currency basis

27

%

(16

)%

  Note: Table may not foot due to rounding. 

  For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. 

(a) During fiscal 2026, we reported a net loss attributable to General Mills. Inclusion of dilutive shares would result in a lower loss per share and was therefore excluded from the calculation of diluted EPS. The inclusion of dilutive shares does not have a significant impact on adjusted diluted EPS and the reconciling items. 

  See our reconciliation below of the effective income tax rate as reported to the adjusted effective income tax rate for the tax impact of each item affecting comparability. 

      Adjusted Earnings Comparisons as a Percent of Net Sales

We believe that these measures provide useful information to investors because they are important for assessing our adjusted earnings comparisons as a percent of net sales on a comparable year-to-year basis.

Our adjusted earnings comparisons as a percent of net sales are calculated as follows:

Quarter Ended

In Millions

May 31, 2026

May 25, 2025

Comparisons as a % of Net Sales

Value

Percent of

Net Sales

Value

Percent of

Net Sales

Gross margin as reported (a)

$

1,603.5

34.8

%

$

1,474.0

32.4

%

Mark-to-market effects

(35.7

)

(0.8

)%

8.1

0.2

%

Restructuring and transformation charges

6.0

0.1

%

8.2

0.2

%

Transaction costs

0.4

—

%

—

—

%

Project-related costs

—

—

%

0.1

—

%

Adjusted gross margin

$

1,574.2

34.2

%

$

1,490.3

32.7

%

Operating (loss) profit as reported

$

(2,092.6

)

(45.4

)%

$

504.0

11.1

%

Goodwill and other intangible assets impairments

1,750.0

38.0

%

—

—

%

Valuation loss on held for sale business

1,031.8

22.4

%

—

—

%

Restructuring and transformation charges

32.2

0.7

%

83.9

1.8

%

Mark-to-market effects

(35.7

)

(0.8

)%

8.1

0.2

%

Transaction costs

14.8

0.3

%

16.2

0.4

%

Acquisition integration costs

2.9

0.1

%

6.7

0.1

%

Investment activity, net

2.0

—

%

3.4

0.1

%

Project-related costs

—

—

%

0.1

—

%

Adjusted operating profit

$

705.4

15.3

%

$

622.5

13.7

%

Net (loss) earnings attributable to General Mills as reported

$

(2,007.9

)

(43.6

)%

$

294.0

6.5

%

Goodwill and other intangible assets impairments, net of tax (b)

1,692.5

36.7

%

—

—

%

Valuation loss on held for sale business, net of tax (b)

780.8

16.9

%

—

—

%

CPW asset impairments, losses, and restructuring charges

29.7

0.6

%

16.7

0.4

%

Restructuring and transformation charges, net of tax (b)

24.9

0.5

%

64.4

1.4

%

Mark-to-market effects, net of tax (b)

(27.5

)

(0.6

)%

6.2

0.1

%

Transaction costs, net of tax (b)

11.4

0.2

%

12.4

0.3

%

Acquisition integration costs, net of tax (b)

2.2

—

%

6.4

0.1

%

Investment activity, net, net of tax (b)

1.6

—

%

2.7

0.1

%

Project-related costs, net of tax (b)

—

—

%

0.1

—

%

Adjusted net earnings attributable to General Mills

$

507.6

11.0

%

$

403.0

8.8

%

  Note: Table may not foot due to rounding. 

  For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. 

(a) Net sales less cost of sales. 

(b) See reconciliation of adjusted effective income tax rate below for tax impact of each adjustment. 

        Fiscal Year

In Millions

2026

2025

2024

Comparisons as a % of Net Sales

Value

Percent of

Net Sales

Value

Percent of

Net Sales

Value

Percent of

Net Sales

Gross margin as reported (a)

$

6,195.7

33.6

%

$

6,733.0

34.6

%

$

6,932.1

34.9

%

Mark-to-market effects

(48.4

)

(0.3

)%

(15.7

)

(0.1

)%

(39.1

)

(0.2

)%

Restructuring and transformation charges

19.4

0.1

%

9.2

—

%

17.6

0.1

%

Transaction costs

0.4

—

%

—

—

%

—

—

%

Project-related costs

—

—

%

0.5

—

%

2.0

—

%

Product recall, net

—

—

%

—

—

%

0.2

—

%

Adjusted gross margin

$

6,167.0

33.5

%

$

6,727.0

34.5

%

$

6,912.7

34.8

%

Operating profit as reported

$

885.8

4.8

%

$

3,304.8

17.0

%

$

3,431.7

17.3

%

Goodwill and other intangible

assets impairments

1,802.9

9.8

%

—

—

%

220.2

1.1

%

Divestitures gain, net

(1,049.4

)

(5.7

)%

(95.9

)

(0.5

)%

—

—

%

Valuation loss on held for sale business

1,031.8

5.6

%

—

—

%

—

—

%

Restructuring and transformation charges

155.5

0.8

%

87.5

0.4

%

38.8

0.2

%

Mark-to-market effects

(48.4

)

(0.3

)%

(15.7

)

(0.1

)%

(39.1

)

(0.2

)%

Transaction costs

31.3

0.2

%

49.1

0.3

%

14.0

0.1

%

Acquisition integration costs

9.5

0.1

%

13.9

0.1

%

0.2

—

%

Investment activity, net

(7.6

)

—

%

8.3

—

%

18.5

0.1

%

Project-related costs

—

—

%

0.5

—

%

2.0

—

%

Legal recovery

—

—

%

—

—

%

(53.2

)

(0.3

)%

Product recall, net

—

—

%

—

—

%

(30.3

)

(0.2

)%

Adjusted operating profit

$

2,811.5

15.3

%

$

3,352.6

17.2

%

$

3,602.7

18.1

%

Net (loss) earnings attributable to General Mills as reported

$

(87.6

)

(0.5

)%

$

2,295.2

11.8

%

$

2,496.6

12.6

%

Goodwill and other intangible assets impairments, net of tax (b)

1,732.5

9.4

%

—

—

%

161.8

0.8

%

Valuation loss on held for sale business, net of tax (b)

780.8

4.2

%

—

—

%

—

—

%

Divestitures gain, net, net of tax (b)

(772.8

)

(4.2

)%

(84.8

)

(0.4

)%

—

—

%

CPW asset impairments, losses, and restructuring charges

148.8

0.8

%

23.3

0.1

%

2.0

—

%

Restructuring and transformation charges, net of tax (b)

119.7

0.6

%

67.2

0.3

%

28.4

0.1

%

Mark-to-market effects, net of tax (b)

(37.3

)

(0.2

)%

(12.1

)

(0.1

)%

(30.1

)

(0.2

)%

Transaction costs, net of tax (b)

24.1

0.1

%

37.8

0.2

%

11.9

0.1

%

Acquisition integration costs, net of tax (b)

7.3

—

%

11.9

0.1

%

0.2

—

%

Investment activity, net, net of tax (b)

(5.8

)

—

%

6.4

—

%

12.6

0.1

%

Project-related costs, net of tax (b)

—

—

%

0.4

—

%

1.3

—

%

Legal recovery, net of tax (b)

—

—

%

—

—

%

(40.3

)

(0.2

)%

Product recall, net, net of tax (b)

—

—

%

—

—

%

(23.3

)

(0.1

)%

Adjusted net earnings attributable to General Mills

$

1,909.7

10.4

%

$

2,345.4

12.0

%

$

2,621.1

13.2

%

  Note: Table may not foot due to rounding. 

  For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. 

(a) Net sales less cost of sales. 

(b) See reconciliation of adjusted effective income tax rate below for tax impact of each adjustment. 

        Constant-currency Segment Operating Profit Growth Rates

We believe that this measure provides useful information to investors because it provides transparency to underlying performance of our segments by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given volatility in foreign currency exchange markets.

Our segments’ operating profit growth rates on a constant-currency basis are calculated as follows:

Quarter Ended May 31, 2026

Percentage Change in
Operating Profit
as Reported

Impact of Foreign
Currency
Exchange

Percentage Change in
Operating Profit on
Constant-Currency Basis

North America Retail

7 %

Flat

7 %

International

81 %

9 pts

72 %

North America Pet

14 %

Flat

14 %

North America Foodservice

22 %

Flat

22 %

Total segment operating profit

13 %

Flat

13 %

Note: Table may not foot due to rounding.  

  Fiscal Year Ended May 31, 2026

Percentage Change in
Operating Profit
as Reported

Impact of Foreign
Currency
Exchange

Percentage Change in
Operating Profit on
Constant-Currency Basis

North America Retail

(20) %

Flat

(20) %

International

96 %

5 pts

90 %

North America Pet

Flat

Flat

Flat

North America Foodservice

(6) %

Flat

(6) %

Total segment operating profit

(13) %

Flat

(13) %

  Note: Table may not foot due to rounding. 

        Adjusted Effective Income Tax Rate

We believe this measure provides useful information to investors because it presents the adjusted effective income tax rate on a comparable year-to-year basis.

Adjusted effective income tax rates are calculated as follows:

Quarter Ended

May 31, 2026

May 25, 2025

In Millions

(Except Per Share Data)

Pretax (Loss)

Earnings (a)

Income

Taxes

Pretax

Earnings (a)

Income

Taxes

As reported

$

(2,231.9

)

$

(240.4

)

$

377.1

$

69.1

Goodwill and other intangible assets impairments

1,750.0

57.5

—

—

Valuation loss on held for sale business

1,031.8

251.0

—

—

Restructuring and transformation charges

32.2

7.4

83.9

19.3

Mark-to-market charges

(35.7

)

(8.2

)

16.2

3.7

Transaction costs

14.8

3.4

8.1

1.9

Acquisition integration costs

2.9

0.7

3.4

0.8

Investment activity, net

2.0

0.5

6.7

0.4

Project-related costs

—

—

0.1

0.1

As adjusted

566.2

71.7

495.5

95.2

Effective tax rate:

As reported

10.8

%

18.3

%

As adjusted

12.7

%

19.2

%

Sum of adjustments to income taxes

312.3

26.1

Average number of common shares - diluted EPS (b)

$

537.3

$

550.4

Impact of income tax adjustments on adjusted diluted EPS

$

(0.58

)

$

(0.05

)

  Note: Table may not foot due to rounding. 

  For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. 

(a) (Loss) earnings before income taxes and after-tax loss from joint ventures. 

(b) During fiscal 2026, we reported a net loss attributable to General Mills. Inclusion of dilutive shares would result in a lower loss per share and was therefore excluded from the calculation of diluted EPS. The inclusion of dilutive shares does not have a significant impact on adjusted diluted EPS and the reconciling items. 

        Fiscal Year Ended

May 31, 2026

May 25, 2025

May 26, 2024

In Millions

(Except Per Share Data)

Pretax

Earnings (a)

Income

Taxes

Pretax

Earnings (a)

Income

Taxes

Pretax

Earnings (a)

Income

Taxes

As reported

$

405.5

$

414.3

$

2,835.0

$

573.7

$

3,028.3

$

594.5

Goodwill and other intangible assets impairments

1,802.9

70.4

—

—

220.2

58.4

Divestitures gain, net

(1,049.4

)

(276.6

)

(95.9

)

(11.1

)

—

—

Valuation loss on held for sale business

1,031.8

251.0

—

—

—

—

Restructuring and transformation charges

155.5

35.9

87.5

20.2

38.8

10.4

Mark-to-market effects

(48.4

)

(11.1

)

(15.7

)

(3.6

)

(39.1

)

(9.0

)

Transaction costs

31.3

7.2

49.1

11.3

14.0

2.1

Acquisition integration costs

9.5

2.2

13.9

2.0

0.2

0.1

Investment activity, net

(7.6

)

(1.7

)

8.3

1.9

18.5

5.9

Project-related costs

—

—

0.5

0.2

2.0

0.7

Legal recovery

—

—

—

—

(53.2

)

(12.9

)

Product recall, net

—

—

—

—

(30.3

)

(7.0

)

As adjusted

$

2,331.2

$

491.4

$

2,882.7

$

594.6

$

3,199.4

$

643.1

Effective tax rate:

As reported

102.2

%

20.2

%

19.6

%

As adjusted

21.1

%

20.6

%

20.1

%

Sum of adjustments to income taxes

$

77.3

$

20.9

$

48.6

Average number of common shares - diluted EPS (b)

538.5

557.5

579.5

Impact of income tax adjustments on adjusted diluted EPS

$

(0.14

)

$

(0.04

)

$

(0.08

)

  Note: Table may not foot due to rounding. 

  For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. 

(a) Earnings before income taxes and after-tax (loss) earnings from joint ventures. 

(b) During fiscal 2026, we reported a net loss attributable to General Mills. Inclusion of dilutive shares would result in a lower loss per share and was therefore excluded from the calculation of diluted EPS. The inclusion of dilutive shares does not have a significant impact on adjusted diluted EPS and the reconciling items. 

        Free Cash Flow Conversion Rate

We believe this measure provides useful information to investors because it is important for assessing our efficiency in converting earnings to cash and returning cash to shareholders. The calculation of free cash flow conversion rate and net cash provided by operating activities conversion rate, its equivalent GAAP measure, follows:

In Millions

Fiscal 2026

Net loss, including earnings attributable to noncontrolling interests, as reported

$

(85.3

)

Goodwill and other intangible assets impairments, net of tax

1,732.5

Valuation loss on held for sale business, net of tax

780.8

Divestitures gain, net, net of tax

(772.8

)

CPW asset impairments, losses, and restructuring charges

148.8

Restructuring and transformation charges, net of tax

119.7

Mark-to-market effects, net of tax

(37.3

)

Transaction costs, net of tax

24.1

Acquisition integration costs, net of tax

7.3

Investment activity, net, net of tax

(5.8

)

Adjusted net earnings, including earnings attributable to noncontrolling interests

$

1,912.0

Net cash provided by operating activities

2,166.2

Purchases of land, buildings, and equipment

(539.9

)

Free cash flow

$

1,626.3

Net cash provided by operating activities conversion rate

NM

Free cash flow conversion rate

85

%

  Note: Table may not foot due to rounding. 

  For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. 

  See our reconciliation above of the effective income tax rate as reported to the adjusted effective income tax rate for the tax impact of each item affecting comparability. 

      More News From General Mills, Inc.

Key Takeaways General Mills is likely to see Q4 revenues and earnings rise when it reports results on July 1, 2026. GIS' Remarkability strategy is supporting demand, distribution and share trends in key retail categories. GIS may gain from Blue Buffalo momentum, margin programs, and easing trade and supply-chain headwinds. General Mills, Inc. (GIS - Free Report) is likely to witness top and bottom-line growth when it reports fourth-quarter fiscal 2026 earnings on July 1. The Zacks Consensus Estimate for revenues is pegged at $4.6 billion, indicating an increase of nearly 1% from the prior-year quarter’s reported figure.

The consensus mark for earnings has remained unchanged over the past 30 days at 82 cents a share, which implies 10.8% growth from the figure reported in the year-ago period. GIS has a trailing four-quarter earnings surprise of 1.2%, on average.

Factors Likely to Influence GIS’ Upcoming ResultsGeneral Mills’ fourth-quarter performance is likely to have witnessed improving business momentum as the company continues executing its Remarkability strategy through product innovation, enhanced consumer value, stronger brand communication and improved omnichannel execution. These initiatives have been driving better household penetration, baseline demand, distribution and market-share trends across several key North America Retail categories.

Management has indicated that the investments made earlier in the fiscal year are expected to support a step-up in organic sales trends during the fourth quarter, aided by stronger competitiveness and seasonal merchandising opportunities.

The North America Pet business is also expected to remain a growth contributor, supported by continued momentum in Blue Buffalo, expanding distribution of Love Made Fresh and ongoing innovation across the pet portfolio. Management expects retailer inventory trends, which weighed on prior-quarter shipments, to normalize in the fourth quarter. Together with continued market-share gains, these factors are likely to support healthier revenue trends across the business. Our model suggests fourth-quarter organic sales growth of 1.4% for the North America Pet segment.

On the earnings front, General Mills is expected to benefit from its Holistic Margin Management program and Global Transformation initiatives. Management also expects several temporary headwinds that weighed on results earlier in the fiscal year, including unfavorable trade-expense timing and weather-related supply-chain disruptions, to become tailwinds in the fourth quarter, supporting a sequential improvement in operating performance and earnings. We expect the adjusted operating margin to increase 60 basis points to 14.3% in the fourth quarter.

However, persistent consumer caution, elevated input costs, tariff-related inflation and ongoing value investments aimed at strengthening competitiveness may have tempered profitability during the quarter despite improving underlying business trends.

Q4 Earnings Whispers for GISOur proven model doesn’t conclusively predict an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

 General Mills currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +0.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.23 billion. The figure implies a 1.7% increase from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $1.99, indicating a 3.7% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.

Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +1.30% and a Zacks Rank of 3. The consensus estimate for CELH’s quarterly revenues is pinned at $891.5 million, which calls for 20.6% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Celsius Holdings’ upcoming quarter’s EPS is pegged at 42 cents, which implies a 10.6% decrease year over year. CELH delivered a trailing four-quarter earnings surprise of 58.1%, on average.

Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank of 3. The consensus estimate for Tyson Foods’ quarterly revenues is pinned at $14.29 billion, which suggests 2.9% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.04, which implies a 14.3% increase year over year. TSN delivered a trailing four-quarter earnings surprise of nearly 18.1%, on average.