GIS - General Mills: Losing Market Share To Store Brands
2024-02-08 01:26:27 ET
Summary
- General Mills is facing challenges in sales due to increased competition from store brands and changing consumer spending habits.
- The company has adjusted its outlook for net sales to remain flat or decrease but expects adjusted operating profit and diluted earnings per share to increase.
- The lack of strong dividend growth and concerns about future sales and profitability make GIS a less attractive investment option for investors seeking total return and growing income.
Overview
The first thing that comes to mind when I hear the name General Mills ( GIS ) is their wonderful selection of cereals. That was something that had a huge part of my childhood upbringing so naturally, I want to like the company. however, I will put my own bias aside and look at the healthiness of GIS through an analytical lens. The price has come down from the high of $90.89/share and the dividend yield is about 3.7%. We can see that over the last decade, the total return of GIS compared to the S&P 500 ( SPY ) has been lackluster so this makes me question if the company deserves a spot in my portfolio....
General Mills: Losing Market Share To Store Brands