General Mills Inc

Food company executives intervened in recent weeks to persuade the Trump administration not to release a proposed definition of ultra-processed food, according to people familiar with the discussions. Chief executives and trade group representatives sent letters and called the White House, arguing that laying out the definition would open the industry to litigation, increase costs, and hurt business. The administration has been working on a definition expected to focus on whether a food includes certain cosmetic ingredients and ingredients not commonly used in home kitchens. Acting FDA Commissioner Kyle Diamantas said the administration has submitted for final review a proposed definition, but the white paper has not yet been cleared by the White House budget office. The definition is expected to include an exemption for foods that meet an already-established healthy criteria by the FDA, potentially sparing items like some yogurts and whole-grain breads.

Cal-Maine Foods, the largest U.S. egg producer, is being viewed as a potential takeover target due to its strong balance sheet and low valuation despite historically low egg prices. The company trades at an EV/EBIT multiple of 9.1 times and boasts a free-cash-flow yield of 10.3 percent, with a net-debt-to-EBITDA ratio of negative 1.9 times indicating more cash than debt. Potential acquirers include Tyson Foods, which could add eggs to its beef, pork, and chicken portfolio in a horizontal consolidation, and General Mills, which could vertically integrate to secure egg supply for its breakfast cereals and baking mixes. A takeover price is estimated between 4.9 billion and 5.7 billion dollars, based on typical control premiums of 20 to 40 percent. With 89 percent free float and no controlling insider, a deal would likely be decided by institutional shareholders.

Walmart, General Mills, and ADM are collaborating on a new regenerative agriculture program covering 40,000 Midwest wheat acres. The initiative targets soil health, water quality, and carbon sequestration, and is designed as a model for broader industry change across food and retail supply chains. The program ties Walmart's shelf offerings to specific environmental outcomes, linking its retail scale to farm-level practices. For investors, this signals how the retailer is managing long-term supply reliability and environmental expectations simultaneously.

Archer-Daniels-Midland has created a new Executive Vice President and Chief Operating Officer role and appointed Jeff Rowe to the position, while also announcing a partnership with General Mills and Walmart to promote regenerative agriculture across 40,000 Midwest wheat acres. Rowe will oversee key operational and research and development functions across ADM. The stock, trading at $87.32, has returned 47.9% year to date and 60.2% over the past year. These moves highlight how ADM is organizing its operations and supply relationships, which may influence execution, risk profile, and positioning in agricultural and food supply chains.

General Mills, ADM and Walmart have announced a strategic collaboration to accelerate regenerative agriculture across 40,000 Midwest wheat acres. The program focuses on key growing regions where General Mills sources wheat from ADM for products sold through Walmart and Sam's Club, with initial projects receiving technical assistance from American Farmland Trust and Ducks Unlimited. It builds on a 2023 commitment by General Mills and Walmart to advance regenerative agriculture across 600,000 shared acres by 2030, with programs already underway on more than 560,000 wheat acres in the U.S. ADM, which manages nearly 5 million regenerative acres globally, will facilitate on-the-ground support including financial incentives for practices like no-till and cover crops. The collaboration contributes to General Mills' goal of advancing regenerative agriculture on 1 million acres by 2030, Walmart's aim to protect or restore at least 50 million acres by 2030, and ADM's efforts to empower farmers on millions of acres.

Smart investors are rotating out of AI and data center trades into quality dividend stocks trading at multi-year lows. General Mills yields 6.49% with 56 straight years of payments, while AT&T yields 5.42% at a fresh 52-week low. Elliott Investment Management's $4 billion stake in PepsiCo signals over 50% upside potential if the company executes its proposed strategic transformation. McDonald's approaches 50 years of dividend increases and yields 2.59%, and Unilever trades near its 52-week lows with a 3.65% yield. All five stocks are rated Buy by top Wall Street firms.

General Mills is estimated to be undervalued with a modeled fair value of $37.88 per share, slightly above its recent close of $36.33, following a fiscal fourth quarter and full year report that included a sizeable impairment-driven net loss alongside continued dividends and a completed multi-year buyback. The share price has declined 2.08% in one day and 3.81% over seven days, though it rose 9.63% over 30 days, while year-to-date it is down 20.54% and the one-year total shareholder return has fallen 25.02%. Analysts expect revenue to remain fairly flat over the next three years, with profit margins recovering from negative 0.5% to 10.0%, underpinning the fair value estimate. The valuation case hinges on margin repair, earnings rebuilding, and a reset of future earnings multiples, but could shift if cost savings are channeled into stronger brand spending or larger product launches gain traction.

AT&T is ranked as the top retirement portfolio pick among three stocks that are both oversold and undervalued, according to an analysis by 24/7 Wall St. AT&T shares are down 25.8% over the past year with a weekly RSI of 35.17, a trailing P/E of 7x, a forward P/E of 9x, a dividend yield of 5.3%, and a beta of 0.42. The company reported Q1 2026 revenue of $31.51 billion, up 2.9%, and adjusted EPS of $0.57, up 11.8%, while reaffirming full-year adjusted EPS guidance of $2.25 to $2.35 and free cash flow of over $18 billion. General Mills placed second with a 6.49% dividend yield, a forward P/E of 12x, and a near-zero beta of negative 0.05, following a fiscal Q4 2026 adjusted EPS beat of 15.85%. Adobe ranked third due to its lack of a dividend and a beta of 1.43, despite a forward P/E of 9x and record Q2 FY2026 revenue of $6.62 billion.

Jim Cramer highlighted General Mills’ strong quarterly results and restructuring plan on his show, noting the stock rallied 8.5%. He called the company one of the most reliable stocks in the market, pointing to its 7.2% dividend yield. Cramer also commented on other food stocks like Hormel, McCormick, and Campbell’s, suggesting their high yields may reflect market concerns about potential dividend cuts.

Nike and General Mills both reported fiscal fourth-quarter results that suggest their businesses are stabilizing, but neither turnaround is complete. Nike posted Q4 revenue of $10.97 billion, down 1% year over year, while adjusted net income of $1.07 billion or $0.20 per share beat expectations of $0.11. Gross margin expanded to 49.2%, and wholesale revenue rose 4%, though Nike Direct revenue declined 7%. General Mills reported Q4 sales of roughly $4.61 billion, up 1% year over year, and adjusted operating profit of $705 million or $0.95 per share, well above estimates of $0.82. Its North American retail segment sales declined 4%, an improvement from a 10% drop a year earlier, and adjusted gross margin expanded 150 basis points to 34.2%. Both stocks are trading near 52-week lows, with General Mills offering a 6% annual dividend yield and an 11X forward earnings multiple, while Nike trades under $50 a share. However, Nike still faces challenges in Greater China and its direct-to-consumer business, and General Mills continues to battle cautious consumer spending.

General Mills shares appear to have bottomed in early 2026, trading below 10 times trailing earnings with a 6.5% dividend yield and improving cash flow. Fiscal fourth quarter 2026 adjusted earnings per share of 95 cents grew 27% year over year, surpassing consensus estimates by more than 1,500 basis points despite mixed segment results. A $3 billion cost-saving initiative targeting up to $750 million in savings and ongoing share buybacks are intended to support earnings and capital returns going forward. Organic sales were flat year over year, with price and mix offsetting volume declines, while North American Retail contracted 4%. The company forecasts fiscal 2027 adjusted earnings per share of $3.10 at the midpoint, aligned with consensus, and expects organic sales to be flattish to slightly down.

Several companies posted gains after reporting quarterly earnings that exceeded analyst expectations. General Mills jumped 8.5% after fourth-quarter fiscal 2026 earnings of $0.95 per share beat the Zacks Consensus Estimate of $0.82. FactSet Research Systems rose 6.7% as third-quarter fiscal 2026 earnings of $4.53 per share topped the $4.44 estimate. MSC Industrial Direct gained 3.7% after third-quarter fiscal 2026 earnings of $1.43 per share surpassed the $1.28 estimate. UniFirst advanced 0.8% following third-quarter 2026 earnings of $2.17 per share, above the $1.93 estimate.

General Mills shares surged as much as 9.9% in New York trading, the biggest intraday gain since 2020, after the packaged-food company reported quarterly adjusted earnings and revenue that beat Bloomberg-compiled analyst estimates. The jump helped trim a year-to-date decline that had reached 25% through Tuesday's close. Management said consumers remain under pressure from rising prices and may keep leaning toward discounts, promotions, and more careful shopping habits, while CEO Jeff Harmening said the company is done cutting prices but will try to win consumers through product innovation, packaging changes, marketing, and trends tied to higher protein and fiber intake, including premium Cheerios with added protein. Organic sales in the North American retail business were flat for the quarter, better than expected, and the company guided for fiscal-year organic sales to range from up 0.5% to down 1.5%. General Mills also targets $3 billion in cost savings by fiscal 2030, which RBC Capital Markets' Nik Modi called prudent and achievable.

General Mills declared a quarterly dividend of $0.61 per share, in line with the previous payout. The forward yield is 6.46%. The dividend is payable on August 3 to shareholders of record as of July 10, with the ex-dividend date also on July 10.

General Mills reported a $2 billion loss last quarter, mainly due to non-cash items, while revenue rose 1% as budget-conscious shoppers opted for smaller packages and sale items. The only segment of its North American sales that grew was the pet business, which includes Blue Buffalo and Tiki Cat, rising 4% with the CEO noting cat growth is on fire. The company plans to achieve $3 billion in cost savings over the next four years and focus product innovation on protein and fiber after protein-packed Cheerios performed well. It cut prices on two-thirds of its products last year to appeal to value-seeking consumers, and the retail segment’s North American sales slide improved from a 10% decline to 4%. Investors pushed the stock up about 9% following the announcement.

General Mills characterized fiscal 2026 as a foundational year focused on 'Remarkability' through base price adjustments to stay below key consumer price thresholds, successfully improving household penetration and base volume despite a pressured consumer backdrop. The company is now pivoting from price-based investments to a focus on innovation, renovation, and brand communication to drive premium mix, while accelerating an enterprise transformation initiative to reimagine the supply chain. Fiscal 2027 guidance assumes the difficult consumer and category backdrop will persist, with $750 million in cost savings expected as part of a larger $3 billion cumulative productivity goal through fiscal 2030, and organic sales growth driven by brand remarkability and favorable product mix rather than broad pricing. Management flagged execution challenges in the Totino's business and a low-single-digit inventory headwind in the Pet segment due to a shift toward e-commerce and mass channels, while noting net inflation of 4% to 5% and a year-over-year comparison headwind from the yogurt divestiture. The company observed a 'K-shaped' economy, addressing lower-income households trading down to staples and higher-income households seeking premium functional benefits through items like Cheerios Protein.

Lime shares jumped on their public debut, opening at $27 per share above the IPO price. The e-scooter and bike operator finally went public after first floating aspirations in 2021. Bending Spoons also enjoyed a boost after its IPO, with the Italian technology company that owns brands like Vimeo and AOL opening at $31 a share above the $29 IPO price. General Mills got a lift after topping fiscal fourth quarter earnings estimates, with the maker of Cheerios and Annie's Mac and cheese outlining a $3 billion cost savings plan through 2030 to win back consumers.

General Mills shares surged 7.2% after the packaged foods company reported second-quarter results that exceeded Wall Street forecasts for both revenue and profit. Revenue rose 1.2% year-over-year to $4.61 billion, surpassing the consensus estimate of $4.58 billion, despite a 4% decline in sales volumes. Adjusted earnings per share came in at $0.95, well above analyst expectations of $0.80. The company noted that a significant drop in reported operating profit was due to one-time, non-cash charges related to goodwill and the planned sale of its Brazil business.

Meta Platforms surged 11% after confirming it is building a new cloud business to sell excess artificial intelligence computing power to outside customers. General Mills jumped more than 6% after posting fourth-quarter adjusted earnings of 95 cents a share on revenue of $4.61 billion, topping estimates, and announcing plans for $3 billion in cumulative cost savings through fiscal 2030. Progress Software rallied over 18% on better-than-expected second-quarter results and strong guidance. Datadog gained more than 2% after disclosing the acquisition of AI startup Adaptive ML. Nike rose more than 4% despite a 12% drop in China sales, as quarterly results beat expectations. Shutterstock tumbled nearly 30% and Getty Images fell 6% after Getty called off their proposed merger due to UK regulatory demands. Alcoa dropped 9% on a $4.1 billion deal to acquire South32's bauxite, alumina, and aluminum portfolio. Salesforce and ServiceNow rose after Guggenheim upgraded both to buy, with ServiceNow up over 6% and Salesforce up 5%. Bloom Energy added more than 2% on an expanded partnership with Brookfield to finance AI infrastructure power. Sandisk and Micron Technology fell sharply, with Sandisk down 9% and Micron off about 8%, after both more than tripled in the prior quarter.

General Mills reported fourth-quarter revenue of $4.61 billion, a 1.2% increase from a year ago, while earnings per share rose to $0.95 from $0.74. Revenue edged past the Zacks Consensus Estimate of $4.6 billion by 0.13%, and EPS beat the consensus of $0.82 by 16.48%. Among its segments, North America Retail net sales fell 3.6% to $2.47 billion, missing the $2.49 billion estimate, while International net sales surged 16.2% to $858.4 million, above the $840.1 million forecast. North America Pet net sales grew 4% to $702.4 million, below the $717.24 million estimate, and North America Foodservice net sales slipped 0.8% to $574.6 million, missing the $581.13 million estimate. Operating profit exceeded analyst expectations across all four segments.

General Mills is expected to report fourth-quarter fiscal 2026 earnings on July 1, with the Zacks Consensus Estimate for revenues at $4.6 billion, up nearly 1% from the prior-year quarter, and earnings per share of 82 cents, implying 10.8% growth. The company's Remarkability strategy, including product innovation and improved omnichannel execution, is likely to have driven better household penetration and market-share trends, while the North America Pet segment is expected to contribute with organic sales growth of 1.4%. Adjusted operating margin is projected to increase 60 basis points to 14.3%, aided by Holistic Margin Management and easing temporary headwinds, though persistent consumer caution and elevated input costs may have tempered profitability. General Mills carries a Zacks Rank of 4 and an Earnings ESP of +0.21%, which does not conclusively predict an earnings beat.

Consumer staples stocks rallied in afternoon trading as investors rotated out of semiconductors and AI names during a global chip selloff. The S&P 500 consumer staples sector gained about 1.7%, the best of all 11 sectors, while the broader S&P 500 fell more than 1%. Packaged-food names led the advance, with Conagra Brands rising about 5%, General Mills more than 3%, and Procter & Gamble up near 2%. Vital Farms jumped 6.8%, BellRing Brands surged 8.7%, and Conagra climbed 5.4%. The rotation was driven by defensive positioning as the chip selloff and hawkish rate repricing under new Fed Chair Kevin Warsh pushed capital into stable-cash-flow defensives, though analysts caution the move could reverse quickly if AI names stabilize.