Is General Mills Stock Underperforming the Dow?

With a market cap of $19.8 billion, General Mills, Inc. (GIS) produces and markets a wide range of branded consumer foods, including cereals, snacks, baking products, frozen meals, ice cream, and pet food through segments such as North America Retail, International, North America Pet, and North America Foodservice. 

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and General Mills fits this criterion perfectly. Its products are sold worldwide through grocery stores, mass merchandisers, e-commerce retailers, restaurants, and specialty pet stores under well-known brands like Cheerios, Betty Crocker, Pillsbury, and Häagen-Dazs.

Shares of the Minneapolis, Minnesota-based company have dipped 27.7% from its 52-week high of $51.33. The stock has increased nearly 10% over the past three months, outperforming the Dow Jones Industrial Average's ($DOWI) nearly 3% rise during the same period. 

The breakfast and snack food giant’s shares have decreased 20.2% on a YTD basis, lagging behind Dow Jones' nearly 9% return. Longer term, the stock has dropped 26.3% over the past 52 weeks, compared to DOWI's 14.6% gain over the same time frame.

Despite recent fluctuations, GIS stock has been trading above its 50-day moving average since late June.

General Mills shares surged 8.5% on Jul. 1 after the company reported better-than-expected Q4 2026 adjusted EPS of $0.95 and revenue of $4.61 billion. Investors were also encouraged by improving business trends, including a 4% decline in North America Retail sales versus a 10% decline a year earlier, 150-basis-point gross margin expansion to 34.2%, and fiscal 2027 guidance of $3 - $3.20 adjusted EPS with organic sales. Additionally, the company announced a $3 billion cost-saving plan over four years through supply chain redesign and business process improvements.

In comparison, GIS stock has shown a less pronounced decline than its rival McCormick & Company, Incorporated (MKC) on a YTD basis, with MKC shares declining 24.4%. Nevertheless, MKC stock has decreased 26.1% over the past 52 weeks, a milder drop than GIS stock.

Due to GIS stock’s underperformance relative to the Dow, analysts are cautious with a consensus rating of "Hold" from 19 analysts. The mean price target of $37.41 is a marginal premium to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.