Minneapolis, Minnesota-based General Mills, Inc. (GIS) is a global manufacturer and marketer of branded consumer foods. Valued at a market cap of almost $34.4 billion, the company’s principal product categories include ready-to-eat cereals, convenient meals, snacks (including grain, fruit and savory snacks, nutrition bars, and frozen hot snacks), yogurt, super-premium ice creams as well as baking mixes and ingredients.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and GIS fits the label perfectly, with its market cap exceeding this threshold. Its key strengths lie in its strong brand equity, with iconic names like Cheerios, Häagen-Dazs, Nature Valley, and Blue Buffalo, which drive customer loyalty and consistent demand. The company benefits from a well-balanced mix of retail and e-commerce distribution channels, ensuring market reach and resilience. Additionally, General Mills’ focus on innovation, cost efficiency, and strategic acquisitions strengthens its competitive edge. 

Shares of the food processing company have slipped 20.9% from its 52-week high of $75.90 reached on Sep. 10. GIS has declined 9.2% over the past three months, outpacing the broader Nasdaq Composite’s ($NASX) 11.3% decline over the same time frame.

Moreover, on a YTD basis, GIS stock is down 5.9%, outperforming NASX’s 8.6% dip over the same time frame. However, in the longer term, the stock has fallen 8.7% over the past 52 weeks, considerably underperforming NASX’s 8.5% return.

To confirm its bearish trend, GIS has been trading below its 200-day moving average since early November and has remained below its 50-day moving average since early October 2024, with some fluctuations.

On Dec. 18, GIS stock declined 3.1%, despite reporting stronger-than-expected Q2 results. The company posted adjusted earnings of $1.40 per share and revenue of $5.2 billion, both surpassing Wall Street’s estimates. Additionally, revenue grew nearly 2% year-over-year, while adjusted earnings climbed 12%, driven by higher adjusted operating profit and strong sales growth in the North American food service segment. The company also improved its gross margin by 250 basis points, primarily due to its effective Holistic Margin Management (HMM). 

However, GIS's fiscal 2025 outlook disappointed investors. The company highlighted certain timing benefits that boosted first-half results but are expected to reverse in the second half of the fiscal year. As a result, it revised its adjusted operating profit and EPS guidance downward. It now expects adjusted operating profit to decline 4% to 2% range in constant currency and projects adjusted EPS to decrease between 3% and 1% in constant currency.

Yet, General Mills has outperformed its rival, The Campbell's Company (CPB), which declined 10.3% over the past 52 weeks and 7.9% on a YTD basis.

Looking at GIS’ recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering it, and the mean price target of $66.06 suggests a modest 10% premium to its current levels.