Food Stocks Decline Following General Mills' Sales Forecast Reduction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Source: Barron's
- Stock Performance: General Mills' stock fell on Tuesday following a revised sales outlook.
- Consumer Demand: The company attributed the lowered outlook to weaker-than-expected consumer demand for its products.
- Brand Recognition: General Mills is known for popular brands such as Cheerios, Pillsbury, and Betty Crocker.
- Market Impact: The decline in stock reflects broader concerns about consumer spending trends affecting food companies.
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Analyst Views on GIS
Wall Street analysts forecast GIS stock price to rise
15 Analyst Rating
4 Buy
9 Hold
2 Sell
Hold
Current: 48.340
Low
47.00
Averages
52.38
High
63.00
Current: 48.340
Low
47.00
Averages
52.38
High
63.00
About GIS
General Mills, Inc. is a global manufacturer and marketer of branded consumer foods. Its segments include North America Retail; International; North America Pet, and North America Foodservice. The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables. The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores. The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Performance: General Mills' stock fell on Tuesday following a revised sales outlook.
- Consumer Demand: The company attributed the lowered outlook to weaker-than-expected consumer demand for its products.
- Brand Recognition: General Mills is known for popular brands such as Cheerios, Pillsbury, and Betty Crocker.
- Market Impact: The decline in stock reflects broader concerns about consumer spending trends affecting food companies.
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- Airline Stocks Rally: Airline stocks showed strong performance on Tuesday, led by a 6% increase in Southwest Airlines after UBS upgraded its rating from neutral to buy with a price target of $73, which not only enhanced the overall performance of airline stocks but also contributed to a more optimistic market outlook.
- Mixed Economic Data: The U.S. February NAHB housing market index unexpectedly fell to a 5-month low of 36, below the expected 38, while the February Empire manufacturing survey slightly declined to 7.1, indicating uncertainty in economic recovery, as the market remains focused on upcoming corporate earnings and economic news.
See More
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- Consumer Stock Decline: Consumer stocks were broadly lower late Tuesday afternoon, reflecting market concerns over economic outlook amid rising inflation and interest rates, leading to a cautious investor sentiment.
- Market Reaction: As consumer confidence wanes, doubts about the profitability of consumer goods companies have intensified selling pressure on related stocks, potentially impacting their short-term price performance.
- Industry Impact: The weakness in the consumer goods sector may affect overall market sentiment, especially in a slowing economy, prompting more investors to shift towards defensive assets to mitigate risks.
- Future Outlook: If consumer stocks continue to underperform, it may lead investors to reassess their portfolios, particularly with the upcoming earnings season where corporate profitability will be a key focus.
See More
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- Stock Performance: General Mills' stock fell on Tuesday following a revised sales outlook.
- Consumer Demand: The company attributed the lowered outlook to weaker-than-expected consumer demand for its products.
- Brand Recognition: General Mills is known for popular brands such as Cheerios, Pillsbury, and Betty Crocker.
- Market Impact: The decline in stock reflects broader concerns about consumer spending trends affecting food companies.
See More
General Mills Lowers 2026 Outlook, Shares Drop
- General Mills Outlook Downgrade: General Mills has lowered its 2026 organic net sales forecast to a decline of 1.5% to 2%, with operating profit and adjusted EPS expected to fall by 16% to 20%, resulting in a 7% drop in shares, indicating market concerns about future growth.
- Southwest Airlines Stock Surge: Shares of Southwest Airlines rose over 6% after UBS upgraded its rating to buy, with analysts highlighting new initiatives like extra legroom and assigned seating that could attract more travelers, showcasing the company's proactive transformation in a competitive airline market.
- ZIM Integrated Shipping Services Surge: ZIM's shares surged 30% following the announcement that German-based Hapag-Lloyd will acquire ZIM for $4.2 billion, financed through cash and external funding, marking a significant consolidation in the shipping industry.
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See More
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- Norwegian Cruise Investment: Activist investor Elliott Investment Management has acquired over a 10% stake in Norwegian Cruise Line, aiming to turnaround the underperforming operator, which has led to a more than 6% increase in share price, reflecting market confidence in its restructuring potential.
- Energy Stock Upgrade: Melius upgraded Chevron from hold to buy, raising its price target from $162 to $205, as analysts believe the global energy company is well-positioned for growth, particularly due to developments in Venezuela.
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- Strategic Progress: At the Consumer Analyst Group of New York conference, General Mills highlighted its Accelerate strategy aimed at restoring organic sales growth, demonstrating the company's commitment to long-term sustainable growth despite challenges in consumer confidence.
- Sales Forecast Downgrade: The company anticipates organic net sales to decline by 1.5%-2% for FY26, a revision from the previous guidance of a 1% decline to a 1% increase, reflecting heightened market uncertainty.
- Profit Outlook Adjustment: General Mills has lowered its adjusted operating profit and diluted EPS outlook to a decrease of 16%-20%, indicating pressure on profitability in the current economic environment.
- Market Performance Analysis: Despite a weak overall market, General Mills shares fell by 3.52% in premarket trading to $46.64, suggesting that company-specific factors are influencing stock performance, with the price closer to 52-week lows, indicating ongoing market pressure.
See More
