GIS - Why did General Mills stock gain on Wednesday? An upside surprise on earnings

General Mills ( NYSE: GIS ) shares jumped higher on Wednesday after posting a strong earnings result and raised outlook in premarket hours.

For its fiscal fourth quarter , the manufacturer of Cheerios, Chex, and more posted a beat on top and bottom lines and raised its outlook for the full year. Additionally, the consumer staples-standby raised its dividend and outlined flexibility for more shareholder returns after shedding slower growth businesses.

"We plan to build on our strong momentum in fiscal 2023 by continuing to compete effectively, investing in our brands and capabilities, and reshaping our portfolio,” he said. “Importantly, our board reinforced its confidence in our performance and outlook by approving a six percent increase in our dividend, underlining our commitment to driving strong returns for General Mills shareholders over the long term."

While “double digit inflation” remains a concern and was a key factor hurting margins in the quarter, the company expects to maintain pricing power that will offset these impacts in the future.

Shares of the cereal manufacturer gained 6.4% on the day, leading the S&P and lifting many consumer staples stocks alongside it .

For further details see: