First take on F4Q earnings

研报英文原文证据摘录

First take on F4Q earnings

Flash Note Consumer | Food

July 01, 2026

General Mills David Palmer John Quartarolo, CFA 212-497-0836 646-784-4638

GIS | $36.38 David.Palmer@evercoreisi.com john.quartarolo@evercoreisi.com

In Line | Target Price/Base Case: $39.00 Elliott Simon, CFA James Donnelly

Company Update 212-497-0820 212-812-2904

Elliott.Simon@evercoreisi.com James.Donnelly@evercoreisi.com

Our initial take on earnings and guidance commentary: 1) Mills’ F4Q was stronger-than-expected due to better-than-expected

gross margin expansion. 2) FY27 guidance was largely in line with recently lowered consensus expectations. 3) in FY26, Mills’

categories that received price investments experienced an improvement in base (non-promoted) volume from -10% YoY to +1%

recently. 4) in FY27, the company hopes to improve dollar market share trends with a step-change in benefit-focused innovation

and renovation (protein, fiber, bold flavors, indulgence, pet humanization). 5) the company is focused on an enlarged efficiency

agenda and strengthening the balance sheet (e.g., prioritizing debt reduction from 4x today to 3x target; M&A and share

repurchases deprioritized), 6) We expect valuation upside (12x FY27e EPS) to largely be dependent on the path to stabilized dollar

sales and market share trend.

F4Q organic sales largely in-line with profit upside across all segments. General Mills reported adjusted F4Q EPS of

$0.95 (+27% YOY; EVRe $0.84; cons. $0.80) with organic sales flat YoY (EVR flat & cons. -0.5%) and adjusted gross margin

expansion of 145bp (cons. +70bp; EVRe +100bp). SG&A dollars were flat YoY and resulted in 20bp of leverage (EVRe 100bp of

deleverage; cons. 70bp of deleverage). The upside to consensus earnings estimates were predominantly better-than-expected