General Mills cuts outlook

Article Excerpt

GENERAL MILLS INC. $64 is a hold. This consumer staples giant (New York symbol GIS; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 555.2 million; Market cap: $35.5 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.8%; www.generalmills.com) is one of the world’s largest foodmakers. Its top brands include Cheerios (cereal), Pillsbury (baking dough), Progresso (soups and salads) and Blue Buffalo (pet food). General Mills’ sales in its fiscal 2025 second quarter, ended November 24, 2024, rose 2.0%, to $5.24 billion from $5.14 billion a year earlier. That’s mainly because retailers increased their inventories ahead of the Thanksgiving holiday. That offset lower selling prices. Thanks to savings from a cost-cutting plan, earnings before unusual items gained 12.0%, to $1.40 from $1.25. However, higher food prices continue to prompt cost-conscious consumers to switch to private label brands. As a result, General Mills expects its earnings for all of fiscal 2025 will fall 2% to $4.43 a share, and the stock trades at 14.4 times that estimate. The $2.40 dividend…