Report
Erin Lash
EUR 147.86 For Business Accounts Only

General Mills' Sales Sour in First Quarter, but Continued Cost Management Focus a Plus; Shares Rich

We’re maintaining our $58 fair value estimate for narrow-moat General Mills after incorporating first-quarter results that included a 4% shortfall in organic sales (reflecting a 6% volume retreat), a 30-basis-point contraction in adjusted gross margins to 37.4%, and an 80-basis-point increase in adjusted operating margins to 19.2%. Despite the tepid top-line performance this quarter, our near-term outlook already called for sales to slip nearly 2% this year. Longer term, we still expect General ...
Underlying
General Mills Inc.

General Mills manufactures and markets branded consumer foods. The company's segments are: North America Retail, which provides cereals, refrigerated yogurt, soup, meal kits, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks, and organic products, among others; Convenience Stores and Foodservice, which provides snacks, yogurt, frozen meals and frozen dough products, and baking mixes, among others; Europe and Australia, which includes retail and foodservice businesses in the Europe and Australia region; Asia and Latin America, which consists of retail and foodservice businesses in the Asia and South America regions; and Pets, which includes pet food products.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Erin Lash

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