Lowering FY27 EPS And PT To $31 To Reflect Core Challenges

研报英文原文证据摘录

Lowering FY27 EPS And PT To $31 To Reflect Core Challenges

TD Cowen General Mills

Global Research June 26, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

Under strong leadership, the company has made bold M&A moves to shift its portfolio toward Monthly retail tracking data and guidance

high-growth categories, invest in data analytics and e-commerce, and roll back prices to for FY26 will provide insight into whether the

improve affordability. That said, the slow pace of volume recovery suggests that the company General Mills' brands can sustain its pricing

will struggle to return to its historical pattern of growth. We expect cost overruns from the weak strategy in an environment where consumers

start of the company's entrance into the fresh dog food category to pressure earnings growth are feeling more pressured and seeking

as well. stronger value.

Base Case Assumptions Upside Scenario Downside Scenario

Organic sales growth of -2% in FY26 1) Price investments in North America Retail 1) Additional price discounting in North

drive volume recovery, leading to positive America Retail due to rising competitive

value growth. intensity.

Operating income down 18% in FY26

2) Acceleration in distribution and velocity 2) Profit pressure in the Pet Food division

for the Blue Buffalo Love Made Fresh dog from cost overruns related to Love Made

Adjusted EPS of $3.41 in FY26, down 19%

food launch. Fresh, including buybacks of expired

product, reformulation, and sales shortfalls.

3) Re-rating of the valuation multiple toward

global multinationals.

Price Performance Company Description

General Mills engages in the manufacturing, marketing, and distribution of consumer foods

$60

through retail stores as well as providing products for foodservice customers. General Mills