Today’s Update
37.4. That was the price of General Mills stock when I entered my position. Today, following the release of their Q4 FY2026 results, the market rewarded those who believed – the stock surged nearly 9%.
Results
General Mills released its quarterly results today, beating analyst expectations. EPS came in at $0.95, crushing the consensus of $0.82. Revenue reached $4.61 billion, also above forecasts.
Yes, I know the company reported an operating loss. However, this stemmed from one-time, non-cash impairment charges related to goodwill and the planned sale of its Brazilian business. This isn’t a red flag – it’s portfolio cleanup, the kind of move well-managed companies make to focus on what truly matters.
The Market Is Starting to See What I See
General Mills shares have been under pressure this year – down 25%. But today, following the results, the market sent a clear message: that was excessive pessimism. The stock surged nearly 9%.
Yes, the guidance for FY2027 is cautious – organic sales in the range of -1.5% to +0.5%, EPS of $3.00–$3.20. But let’s not forget – FY2026 delivered improvements in underlying volumes. The fundamentals are healing.
My Position
I bought at 37.4. Today, I see the market appreciating exactly what I spotted earlier. General Mills is not a dying company – it is a firm undergoing a transformation. 33,000 employees, dozens of iconic brands, $3 billion in projected savings. And a management team that, instead of complaining about the environment, is adjusting its strategy to fit reality.
I’m holding. And I’m adding.
Not every day in the stock market is a bed of roses. But when you see a company you believe in doing exactly what it promised – and the market finally recognizes it – that is the best feeling an investor can have.
Today is a good day for General Mills. And I believe there are many more such days ahead.
A Speculation Against Trump
I am betting on the midterms and the change that is coming. All the signs in the sky and on the ground indicate that Trump and the Republicans are in serious trouble ahead of the November elections. His approval ratings on the economy have dropped to their lowest levels, and as many as 77% of Americans – including a majority of Republicans – blame his policies for the rising cost of living. Blue-collar white voters, Trump’s key demographic, are seriously questioning his economic stewardship for the first time. Political analysts are already writing outright that Trump has “written off” the midterm elections, because gas and food prices are simply too heavy of a political liability.
And that is precisely the point. A Trump defeat is a light at the end of the tunnel for the American consumer. The war with Iran triggered an energy shock comparable to the 1970s oil crisis, driving up fuel and food prices. The cost of living and food prices are now the number one topic across the entire political spectrum. Voters are tired, frustrated, and want change. And a change in the White House and Congress – which is becoming increasingly real after a Republican defeat – means a change in the economic climate. One that is more favorable to the average American’s wallet.
And that, in turn, is fantastic news for General Mills. When inflation starts to cool, when fuel prices drop, and when consumers breathe a sigh of relief – they will reach for the products they know and trust. For Cheerios at breakfast, for Yoplait yogurt, for Blue Buffalo pet food. General Mills has brands that are embedded in the daily lives of Americans. When that daily life ceases to be a financial struggle, these brands will come alive again.
That is why I am not selling. Today, we play for the earnings. Tomorrow, we play for the consumer rebound. And General Mills is standing right at the center of that story.
