General Mills, Inc. (NASDAQ:GIS), headquartered in Minneapolis, Minnesota, is a leading global manufacturer and marketer of branded consumer foods. With a market capitalization of $24.6 billion, General Mills stock qualifies as a large-cap stock, reflecting its influence and scale in the packaged foods sector. Its portfolio includes iconic brands such as Cheerios, Nature Valley, and Yoplait, which have sustained consumer loyalty for over 150 years. The company’s strength comes from premium pricing power, efficient supply chain management, and innovative product launches. Strategic joint ventures and global expansion have further reinforced its market position, while grain merchandising operations help manage costs and ensure consistent product quality.
General Mills Stock Performance Overview
Despite these advantages, General Mills stock performance has lagged in recent periods. GIS slipped 31.5% from its 52-week high of $67.40, reached on December 2, 2024. Over the past three months, GIS declined 7.1%, underperforming the First Trust Nasdaq Food & Beverage ETF (FTXG), which fell 3.5% during the same period.
Over a longer timeframe, GIS shares fell 14.9% over six months and 30.3% over the past 52 weeks, significantly underperforming FTXG’s six-month dip of 5% and one-year loss of 12.3%. The stock has consistently traded below its 50-day and 200-day moving averages, confirming a bearish trend with minor fluctuations.
Challenges Facing General Mills Stock Performance
The underperformance of GIS reflects several headwinds. Declining sales in core product categories, government scrutiny of pricing practices, and a shift in consumer preferences toward private-label alternatives have pressured the company’s revenue growth. Analysts project that sales could drop 3.3% over the next 12 months, largely driven by falling volumes in cereals, snacks, and refrigerated products.
Despite these challenges, General Mills has shown pockets of resilience. On September 17, GIS reported its Q1 results, with an adjusted EPS of $0.86, surpassing the Wall Street estimate of $0.81. Revenue totaled $4.52 billion, slightly above the forecast of $4.50 billion. While this demonstrates operational stability, it has not been enough to offset broader market concerns about the stock.
How GIS Compares to Other Food & Beverage Stocks
In the competitive packaged foods space, General Mills stock has underperformed some of its peers. For example, Kellanova (NASDAQ:K) has demonstrated more consistent growth, posting a 1.6% gain over six months and a 3.2% rise over 52 weeks. The contrast underscores the difficulties General Mills faces in navigating evolving consumer trends and maintaining its competitive edge.
Analyst sentiment on GIS is cautiously neutral. Among 19 analysts covering the stock, the consensus rating is “Hold”, reflecting tempered expectations for near-term growth. The mean price target is $53.79, implying a potential upside of 16.4% from current trading levels. This suggests that while the stock is not without opportunity, investors should temper expectations against industry pressures and broader macroeconomic trends.
Key Takeaways for Investors
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Large-cap strength: GIS’s $24.6 billion market cap and iconic brands provide stability and long-term recognition.
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Recent underperformance: The stock has fallen more sharply than peers like Kellanova, reflecting sector-specific pressures.
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Mixed earnings signals: While the Q1 EPS beat shows operational efficiency, sales declines and private-label competition weigh on performance.
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Analyst guidance: A “Hold” rating with a $53.79 price target suggests moderate upside potential but limited near-term catalysts.
Investors considering General Mills stock performance should weigh the company’s long-term brand strength and operational capabilities against short-term market and consumer headwinds. While General Mills may not currently be a top performer within the food & beverage sector, its steady fundamentals and potential for modest upside could appeal to conservative investors seeking exposure to large-cap, dividend-paying consumer staples.
Bottom Line
General Mills (NASDAQ:GIS) faces challenges in matching the performance of some food & beverage peers due to shifting consumer habits and pricing scrutiny. However, its strong brand portfolio, efficient operations, and occasional earnings surprises provide stability and moderate growth potential. Investors should balance expectations, considering both the short-term headwinds and long-term resilience of this large-cap staple.
Even as General Mills stock underperforms ETFs like FTXG or peers such as Kellanova (NASDAQ:K), disciplined investors may still find opportunities in this iconic packaged foods leader for a balanced portfolio strategy.
Featured Image: Freepik
Author Stephanie Bédard-Châteauneuf 
