GIS - Why did General Mills stock jump today? A beat-and-raise quarter impressed

General Mills ( NYSE: GIS ) shares rose 6.47% late on Wednesday after the company posted a beat-and-raise quarter.

For the first quarter of its 2023 fiscal year, the Minnesota-based consumer foods manufacturer notched a 4% jump in net sales to $4.7B and a 13% rise in adjusted diluted EPS to $1.11. Analysts had anticipated $1.00 and $4.72B, respectively. Operating profits also rose notably, jumping 8% on an adjusted basis to $1.1B as North American retail and pet segment sales outpaced declines in foodservice and international businesses.

Standing out was the GIS profit guidance with which was for EPS growth of +2% to +5% vs. a prior expectation for 0% to +3%. General Mills ( GIS ) said stronger sales growth during the quarter was helped by lower than expected volume elasticities and strength with the North American retail business

"Significant inflation and reduced consumer spending power has led to an increase in at-home eating and other value-seeking behaviors," noted Chief Executive Officer Jeff Harmening.

The strong report from GIS contributed to a jump of other packaged food stocks.

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