La chaîne d'options affiche les données clés des options sur actions de General Mills à différents prix d'exercice et dates d'expiration. Les traders utilisent ces informations pour analyser les transactions potentielles et évaluer le sentiment du marché pour General Mills..

General Mills (NYSE:GIS) Stock, Chaîne d'Options

General Mills

General Mills is a global packaged food company that produces snacks, cereal, convenient meals, dough, baking mixes and ingredients, pet food, and superpremium ice cream. Its largest brands are Nature Valley, Cheerios, Old El Paso, Pillsbury, Betty Crocker, Blue Buffalo, and Haagen-Dazs. In fiscal 2024, 81% of its revenue was derived from the United States, although the company also operates in Canada, Europe, Australia, Asia, and Latin America. Although most of General Mills' products are sold through retail stores to consumers, the company also sells products to the foodservice channel and the commercial baking industry.

General Mills Inc

JP Morgan analyst Ken Goldman maintains General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Neutral and raises the price target from $63 to $67.

News

Price Target

Analyst Ratings

JP Morgan Maintains Neutral on General Mills, Raises Price Target to $67

<a href="https://www.cnbc.com/2024/10/07/sen-elizabeth-warren-and-rep-madeleine-dean-demand-food-and-beverage-ceos-put-a-stop-to-shrinkflation.html">https://www.cnbc.com/2024/10/07/sen-elizabeth-warren-and-rep-madeleine-dean-demand-food-and-beverage-ceos-put-a-stop-to-shrinkflation.html</a>
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Two Democratic lawmakers are demanding that some of the biggest food and beverage companies stop engaging in "shrinkflation" — the practice of reducing product sizes while charging prices that are the same or higher.
In pointed letters, Sen. Elizabeth Warren of Massachusetts and Rep. Madeleine Dean of Pennsylvania accused General Mills, Coca-Cola and PepsiCo of engaging in a "pattern of profiteering" through shrinkflation and by "dodging taxes." The letters, sent Sunday afternoon and shared first with NBC News, cite tactics the companies have used in recent years to increase their bottom lines.
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General Mills, for example, reduced the sizes of many cereal boxes in 2021, "including decreasing ‘Family Size' Cocoa Puffs from 19.3 ounces to 18.1 ounces while charging the same price," the letter to General Mills Chairman and CEO Jeff Harmening read. It added: "Then, from mid-2021 to mid-2022, General Mills hiked prices five times, and in 2023, your Group President of North American Retail bragged that the company was ‘getting smart about how we look at pricing.'"
Coca-Cola has downsized its products, too, said the letter to Chairman and CEO James Quincey, and it is "selling less soda for the same price." The same with PepsiCo, which "replaced its 32 oz Gatorade bottle with a 28 oz bottle for the same price."
"Shrinking the size of a product in order to gouge consumers on the price per ounce is not innovation, it is exploitation," the letter to PepsiCo head Ramon Laguarta read.
Spokespeople for General Mills, Coca-Cola and PepsiCo did not immediately respond to requests for comment. PepsiCo has denied changing bottle sizes for profit; a spokesperson&nbsp;<a href="https://www.nbcnews.com/business/consumer/walmart-chipotle-higher-prices-criticism-rcna160713">told CNBC in July</a>&nbsp;that the 28-fluid-ounce bottle of Gatorade has existed for over a decade and that selling it more widely was part of the company's long-term strategy, not a response to the current economic environment. Coca-Cola has explained its smaller bottles as a&nbsp;<a href="https://www.modernretail.co/operations/shrinkflation-is-boosting-coca-colas-bottom-line/">way to offer lower price points</a>&nbsp;to budget-conscious consumers.
Regardless, Warren and Dean also accused the companies of funding lobbying for&nbsp;<a href="https://www.americanprogress.org/article/the-tax-cuts-and-jobs-act-failed-to-deliver-promised-benefits/">Republican-led corporate tax breaks</a>&nbsp;in 2017 that promised a trickle-down effect but instead "incentivized price gouging" because "corporations raised prices to pad their profits, knowing that lower corporate tax cuts meant they would get more back on each dollar of price increase," all three letters said.
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Citing a February analysis from the nonprofit&nbsp;<a href="https://sfo2.digitaloceanspaces.com/itep/ITEP-Corporate-Tax-Avoidance-in-the-First-Five-Years-of-the-Trump-Tax-Law.pdf">Institute on Taxation and Economic Policy</a>, the letter to General Mills said that in the first five years following the 2017 tax cuts, General Mills paid an average effective tax rate of 14.8% on its $12 billion in profits — a lower tax rate than many working individuals pay. Coca-Cola paid 13.5% in federal income taxes on its $13.4 billion in profits for the same time frame, the letter to its CEO said, while PepsiCo made $22.4 billion in profits during those years and paid an average effective tax rate of 15%.
"People have noticed that their box of Cheerios and bag of Doritos are smaller, but prices are higher — and at the same time these giant corporations are paying lower tax rates than the average American," Warren said in a statement to NBC News. "We can't let them get away with this price gouging and tax dodging. It's just plain wrong, and we're fighting back."
Shrinking consumer goods extend beyond soda and cereal.&nbsp;<a href="https://www.mouseprint.org/">MousePrint.org</a>, a website that tracks retail products, has been highlighting items that have&nbsp;<a href="https://www.mouseprint.org/category/downsiz/">gone down in size but not in price</a>, including a pack of razors that once contained 36 razors and now is down to 30 and a bag of almonds that went from 30 ounces to 25.
President Joe Biden has mentioned shrinkflation numerous times, declaring it a "rip-off" in a&nbsp;<a href="https://x.com/POTUS/status/1756713597864988940?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1756713597864988940%7Ctwgr%5E2d8d6b2fdb9f6e2dac3d653d03c08b26020eb18f%7Ctwcon%5Es1_&amp;amp;ref_url=https%3A%2F%2Fwww.foxbusiness.com%2Fpolitics%2Fpresident-biden-slams-shrinkflation-in-super-bowl-sunday-video">video he posted to X</a>. In his State of the Union address this year, he urged Congress to pass a&nbsp;<a href="https://www.casey.senate.gov/news/releases/stop-shrinkflation-casey-introduces-legislation-to-crack-down-on-big-corporations-shrinking-products-without-reducing-prices">bill that would</a>&nbsp;crack down on shrinkflation by regulating it as unfair or deceptive.
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Even Cookie Monster has opined on downsized products,&nbsp;<a href="https://x.com/MeCookieMonster/status/1764692032914690276?lang=en">lamenting on X</a>&nbsp;in March: "Me hate shrinkflation! Me cookies are getting smaller."
But to manufacturers looking to grow profit, especially in times of inflation as the costs of packaging materials and ingredients rise, reducing product size is often seen as a better move than upping prices, said Nailya Ordabayeva, an associate professor of marketing at the Boston University Questrom School of Business.
"Final price increases draw much bigger backlash than volume decreases," she said. "So, between the two evils, the downsizing becomes a preferred option."
That having been said, when shoppers notice that they have paid the same amount for less, particularly if it's something they consume regularly compared with an indulgent item they buy only once in a while, "at that point they get upset," Ordabayeva said.
But consumer frustration has not stopped shrinkflation. A&nbsp;<a href="https://www.casey.senate.gov/imo/media/doc/shrinkflation_report.pdf">report in December</a>&nbsp;by Casey's office found that household products like toilet paper and paper towels were 34.9% more expensive per unit than in January 2019, with 10.3% of the price increase due to producers' shrinking the sizes of rolls and packages. Meanwhile, snacks such as Oreos and Doritos had become 26.4% more expensive since January 2019, with 9.8% of the increase "accomplished by giving families fewer chips and cookies for their dollar," the report said.
Sarah Gallo, senior vice president of federal affairs at Consumer Brands Association, a trade group that Coca-Cola, PepsiCo and General Mills all belong to, defended industry practices to NBC News.
She cited&nbsp;<a href="https://www.frbsf.org/research-and-insights/publications/economic-letter/2024/05/are-markups-driving-ups-and-downs-of-inflation/#toc_Potential-drivers-of-inflation--Production-costs-and-markups">an inflation report</a>&nbsp;the Federal Reserve Bank of San Francisco released in May that found that "aggregate markups over the past three years are not unusual compared with previous economic recoveries, countering the misleading attacks on the industry."
"The industry remains focused on providing the best products at the most competitive price to consumers," she said in a statement.
The letters from Warren and Dean requested three pieces of information: the average price the corporations charged per ounce of soda or per ounce of cereal every year since 2018, how much more in federal taxes they would have paid had the 2017&nbsp;<a href="https://www.cbpp.org/research/federal-tax/the-2017-trump-tax-law-was-skewed-to-the-rich-expensive-and-failed-to-deliver">Tax Cuts and Jobs Act</a>&nbsp;not been in effect and whether company executives received bonuses or other incentives during periods of high inflation.
Dean said the letters were sent to "ease the wrongful burden" the companies are imposing on consumers.
"Even as our economy recovers from the pandemic, people are still hurting from high prices at the grocery store,'" Dean said in a statement to NBC News. "Charging more for products, like cereal, while reducing their size means that Americans are paying more for less and big corporations are paying less than their fair share in taxes."

Macro Economic Events

Economics

"Sen. Elizabeth Warren And Rep. Madeleine Dean Demand Food And Beverage CEOs Put A Stop To 'Shrinkflation'" - CNBC

General Mills (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gis#NYSE">GIS</a>) can provide a hedge if volatility continues to plague the S&amp;P 500. The company is amid a business transformation telegraphed in its price action, which is set up for a significant reversal after more than a year of lackluster performance.&nbsp;
The transformation includes selling its yogurt business, which will lighten the portfolio and shore up the fortress balance sheet. This will allow management to focus on core markets, international growth, and local gems that drive margin while providing steady capital returns.&nbsp;
The bonus is the stock beta. General Mills has trades with a 5-year beat of 0.1 and a 2-year beta of -.2, suggesting little to no correlation to the&nbsp; S&amp;P 500; if the broad market falls, General Mills trends will be unaffected and may even get an added boost from a flight to safety.&nbsp;
<h2>General Mills Post Earnings Dip Is A Buying Opportunity That Won&#39;t Last Long</h2>
General Mills share prices fell following the FQ1 release, opening a buying opportunity that will likely last only a short time. The results and guidance were good, with Q1 performance being better than expected, and guidance was reaffirmed. The problem is that Q1 strength didn&#39;t carry through to the guidance, suggesting the remainder of the year could be tepid relative to expectations. However, the $4.85 billion in revenue is down only 1% compared to last year, outperforming by 100 basis points, and aligns with the outlook for turnaround, resumed organic growth, and capital returns, which counts over the long term.&nbsp;&nbsp;
The margin news is just as mixed, with margins contracting but less than expected, leaving earnings down compared to last year but better than forecast. The salient detail is that although net earnings are down 14%, the $580 million is sufficient to sustain the fortress balance sheet and the capital return. The $1.07 in adjusted earnings gives a 55% quarterly dividend payout ratio, which is sustainable and expected to improve as the year progresses. It also leaves room for share repurchases, which have been aggressive.&nbsp;
The guidance is good enough. The company forecasts sequential improvement in revenue and earnings and YOY organic growth to return by the end of the year, not including the sale of the yogurt business. That is expected to close in 2025 and will impact reported results for the following twelve months by approximately 3% on a diluted basis.&nbsp;
<h2>General Mills Capital Return Is Top-Tier and Expected to Accelerate</h2>
General Mills&#39; financial condition is rock solid and allows for substantial capital return,&nbsp;including dividends and share buybacks. The dividend is attractive at 3.25% and only 16x earnings, a high-yield value compared to the broad market and leading consumer staples peers like Hormel (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hrl#NYSE">HRL</a>), Hershey (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hsy#NYSE">HSY</a>), and Kellanova (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/k#NYSE">K</a>), which trade at 20x, 21x, and nearly 22x their earnings outlooks, respectively.&nbsp;
Balance sheet highlights from Q1 include reduced cash, increased debt, and reduced equity, but repurchases and treasury stock offset those factors. The company repurchased $300 million of shares during the quarter, reducing the average count by 4.65% year over year and increasing the treasury holdings by nearly 20%. Repurchases have slowed compared to last year due to the contraction of revenue and earnings, and they may not accelerate soon. However, buybacks are likely to continue at a float-reducing pace through the year&#39;s end, and the company plans to use proceeds from the yogurt sale to boost activity once closed.&nbsp;
<h2>General Mills Share Price Supported by an Expectation for Lower Interest Rates</h2>
General Mills&#39; share price has steadily risen since mid-July, when the CPI report sparked a massive broad-market sell-off after signaling a high probability that the FOMC would lower interest rates this year. The signal is that risk-off investment dollars, once focused on higher-yielding bonds, have turned to quality dividend growth stocks like General Mills, which still present value and yield for investors today.&nbsp;
The technical action since July suggests a double-bottom reversal pattern is now in play, and price action has retreated to a critical support target. The critical target is the 30-day EMA, which aligns with highs earlier this year. If support is confirmed at this level, investors can expect GIS stock to continue higher and complete the reversal by year&#39;s end. If not, GIS stock could fall to the $70 level or lower before hitting solid support.&nbsp;
<img alt="General Mills GIS stock chart" class="aligncenter" src="https://www.marketbeat.com/logos/articles/med_20240918104246_chart-gis-9182024.png" style="height:426px; width:917px" />
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/why-general-mills-is-the-perfect-hedge-for-s-and-p-500-volatility/">Why General Mills Is the Perfect Hedge for S&amp;P 500 Volatility</a>&quot; first appeared on MarketBeat.

Earnings

Large Cap

Guidance

Dividends

Technicals

Buybacks

Markets

Trading Ideas

Why General Mills Is the Perfect Hedge for S&P 500 Volatility

TD Cowen analyst Robert Moskow maintains General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Hold and raises the price target from $72 to $75.

TD Cowen Maintains Hold on General Mills, Raises Price Target to $75

Barclays analyst Andrew Lazar maintains General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Equal-Weight and raises the price target from $67 to $74.

Barclays Maintains Equal-Weight on General Mills, Raises Price Target to $74

Citigroup analyst Thomas Palmer maintains General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Neutral and lowers the price target from $76 to $75.

Citigroup Maintains Neutral on General Mills, Lowers Price Target to $75

Stifel analyst Matthew Smith maintains General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Buy and raises the price target from $70 to $82.

Stifel Maintains Buy on General Mills, Raises Price Target to $82

RBC Capital analyst Nik Modi reiterates General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Sector Perform and maintains $70 price target.

Reiteration

RBC Capital Reiterates Sector Perform on General Mills, Maintains $70 Price Target

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Needham raised the price target for SS&amp;C Technologies Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SSNC#NASDAQ">SSNC</a>) from $81 to $90. Needham analyst Mayank Tandon maintained a Buy rating. SS&amp;C Technologies shares fell 0.2% to close at $75.36 on Wednesday. <a href="https://www.benzinga.com/quote/ssnc/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Morgan Stanley cut the price target for Elanco Animal Health Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELAN#NYSE">ELAN</a>) from $17 to $15. Morgan Stanley analyst Erin Wright downgraded the stock from Overweight to Equal-Weight. Elanco Animal Health shares gained 2.5% to close at $14.65 on Wednesday. <a href="https://www.benzinga.com/quote/elan/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Mizuho slashed Athira Pharma, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATHA#NASDAQ">ATHA</a>) price target from $5 to $0.5. Mizuho analyst Graig Suvannavejh downgraded the stock from Outperform to Neutral. Athira Pharma shares fell 4.7% to close at $0.4630 on Wednesday. <a href="https://www.benzinga.com/quote/atha/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Bernstein cut NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) price target from $112 to $109. Bernstein analyst Aneesha Sherman maintained an Outperform rating. NIKE shares gained 0.3% to close at $80.90 on Wednesday. S<a href="https://www.benzinga.com/quote/NKE/analyst-ratings">ee how other analysts view this stock.</a></li>
<li>Loop Capital boosted the price target for Aspen Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZPN#NASDAQ">AZPN</a>) from $204 to $260. Loop Capital analyst Mark Schappel maintained a Buy rating. Aspen Technology rose 1.1% to close at $236.00 on Wednesday. <a href="https://www.benzinga.com/quote/AZPN/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Mizuho increased Carnival Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) price target from $22 to $25. Mizuho analyst Ben Chaiken maintained an Outperform rating. Carnival shares rose 1.8% to close at $18.36 on Wednesday. <a href="https://www.benzinga.com/quote/CCL/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Pivotal Research raised Spotify Technology S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) price target from $460 to $510. Pivotal Research analyst Jeffrey Wlodarczak maintained a Buy rating. Spotify shares gained 0.5% to close at $343.97 on Wednesday. <a href="https://www.benzinga.com/quote/SPOT/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Piper Sandler increased the price target for General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) from $74 to $84. Piper Sandler analyst Michael Lavery maintained an Overweight rating. General Mills shares rose 0.7% to close at $75.01 on Wednesday. <a href="https://www.benzinga.com/quote/GIS/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Piper Sandler raised Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>) price target from $23 to $27. Piper Sandler analyst Patrick Moley maintained an Overweight rating. Robinhood shares rose 1.4% to close at $22.95 on Wednesday. <a href="https://www.benzinga.com/quote/HOOD/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Oppenheimer raised T-Mobile US, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>) price target from $200 to $215. Oppenheimer analyst Timothy Horan maintained an Outperform rating. T-Mobile shares fell 3% to close at $196.68 on Wednesday. <a href="https://www.benzinga.com/quote/TMUS/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
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<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="512" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19082758/image-153-1024x512.png" alt="" class="wp-image-556095" style="width:628px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19082758/image-153-1024x512.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19082758/image-153-300x150.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19082758/image-153-768x384.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19082758/image-153.png 1335w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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Robinhood To Rally Around 18%? Here Are 10 Top Analyst Forecasts For Thursday

Piper Sandler analyst Michael Lavery maintains General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Overweight and raises the price target from $74 to $84.

Piper Sandler Maintains Overweight on General Mills, Raises Price Target to $84

The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, with the index in the &#8220;Greed&#8221; zone on Wednesday.
U.S. stocks settled lower on Wednesday, following the Federal Reserve&#8217;s interest rate decision. The U.S. central bank slashed interest rates by 50 basis points Wednesday at its September Federal Open Market Committee meeting, lowering the federal funds rate to a range of 4.75% to 5%. This marks the first rate cut in over four years and breaks a streak of 12 consecutive months with rates held steady.
On the economic data front, housing starts in the U.S. climbed by 9.6% from the prior month to an annualized rate of 1.356 million units for August. U.S. building permits gained by 4.9% to an adjusted annual rate of 1.475 million in August.
General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) reported better-than-expected earnings for its first quarter on Wednesday.
Most sectors on the S&amp;P 500 closed on a negative note, with consumer staples, utilities, and information technology stocks recording the biggest losses on Wednesday. However, energy and communication services stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 104 points to 41,503.10 on Wednesday. The S&amp;P 500 fell 0.29% to 5,618.26, while the Nasdaq Composite fell 0.31% at 17,573.30 during Wednesday's session.
Investors are awaiting earnings results from Darden Restaurants, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), FactSet Research Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>), and FedEx Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) today.
What is CNN Business Fear &amp; Greed Index?
At a current reading of 56.2, the index was in the &#8220;Greed&#8221; zone on Wednesday, versus a prior reading of 55.9.
The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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Dow Tumbles Over 100 Points Following Fed's Rate Decision: Fear & Greed Index In 'Greed' Zone

U.S. stocks traded mixed this morning, with the Dow Jones index falling over 50 points on Wednesday.
Following the market opening Wednesday, the Dow traded down 0.17% to 41,536.53 while the NASDAQ rose 0.14% to 17,653.56. The S&amp;P 500 also fell, dropping, 0.01% to 5,634.39.
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Leading and Lagging Sectors Energy shares jumped by 0.3% on Wednesday.
In trading on Wednesday, health care shares fell by 0.2%.
Top Headline
General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) reported better-than-expected earnings for its first quarter on Wednesday.
The company reported first-quarter adjusted earnings per share of $1.07 (down 2%), beating the street view of $1.06. Quarterly revenues of $4.85 billion outpaced the analyst consensus estimate of $4.801 billion.
Equities Trading UP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<ul>
<li>Portage Biotech Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRTG#NASDAQ">PRTG</a>) shares shot up 185% to $12.92 after jumping around 15% on Tuesday.</li>
<li>Shares of Odyssey Marine Exploration, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OMEX#NASDAQ">OMEX</a>) got a boost, surging 126% to $1.12 after declining around 89% on Tuesday.</li>
<li>Webuy Global Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBUY#NASDAQ">WBUY</a>) shares were also up, gaining 97% to $0.2294. Webuy Global, on Tuesday, reported a year-over-year increase in interim H1 revenue results.</li>
</ul>
Equities Trading DOWN
<ul>
<li>Galmed Pharmaceuticals Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GLMD#NASDAQ">GLMD</a>) shares dropped 34% to $9.98 after jumping 290% on Tuesday.</li>
<li>Shares of BurgerFi International, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BFI#NASDAQ">BFI</a>) were down 29% to $0.1651. BurgerFi recently received interim approval for $3.5 million in financing to support 144 locations during its restructuring.</li>
<li>Cibus, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CBUS#NASDAQ">CBUS</a>) was down, falling 23% to $3.90 after the company announced the pricing of $12 million offering of 3 million shares at $4.00 per share.</li>
</ul>
Commodities In commodity news, oil traded down 0.7% to $70.70 while gold traded up 0.4% at $2,603.60.
Silver traded up 0.1% to $30.98 on Wednesday, while copper rose 0.6% to $4.2965.
Euro zone
European shares were lower today. The eurozone's STOXX 600 fell 0.35%, Germany's DAX rose 0.08% and France's CAC 40 fell 0.40%. Spain's IBEX 35 Index fell 0.13%, while London's FTSE 100 fell 0.61%.
Annual inflation rate in the Eurozone fell to 2.2% in August, recording the lowest level since July 2021, compared to 2.6% in the prior month. Construction output in the Eurozone fell by 2.2% year-over-year in July compared to a revised 1.3% decline in the previous month.
Annual inflation rate in the UK came in unchanged at 2.2% in August, in line with estimates, while producer prices increased 0.2% year-over-year in August.
Asia Pacific Markets
Asian markets closed mostly higher on Wednesday, with Japan's Nikkei 225 gaining 0.49%, China's Shanghai Composite Index gaining 0.49% and India's BSE Sensex falling 0.16%.
Japanese trade deficit shrank to JPY 695.30 billion in August from JPY 940.10 billion in the year-earlier month, and versus market expectations of a JPY 1,380 billion gap.
Economics
<ul>
<li>U.S. mortgage applications surged by 14.2% from the prior week in the week ending Sept. 13.</li>
<li>Housing starts in the U.S. climbed by 9.6% from the prior month to an annualized rate of 1.356 million units for August.</li>
<li>U.S. building permits gained by 4.9% to an adjusted annual rate of 1.475 million in August.</li>
</ul>
Now Read This: 
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40917190/jim-cramer-labels-moderna-a-big-disappointment-but-suggests-doubling-down-on-another-pha">Jim Cramer Labels Moderna A &#8216;Big Disappointment,&#8217; But Suggests Doubling Down On Another Pharma Powerhouse</a></li>
</ul>

Equities

Eurozone

Commodities

Intraday Update

CBUS

GLMD

OMEX

PRTG

WBUY

US Stocks Mixed; General Mills Posts Upbeat Earnings

General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) shares are trading<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener"> marginally lower on Wednesday.</a>
The company reported first-quarter adjusted earnings per share of $1.07 (down 2%), <a href="https://www.benzinga.com/pressreleases/24/09/b40915872/general-mills-reports-fiscal-2025-first-quarter-results" target="_blank" rel="noreferrer noopener">beating the street view of $1.06</a>. Quarterly revenues of $4.85 billion outpaced the analyst consensus estimate of $4.801 billion.
The quarterly earnings were affected by lower adjusted operating profit, higher net interest expense, and a higher adjusted effective tax rate.
Net sales fell by 1%, while organic net sales also decreased by 1%, driven by unfavorable organic net price realization and mix.
&#8220;We strengthened our core by delivering more remarkable experiences to consumers, which translated into improved volume, net sales, and market share trends versus the previous quarter,&#8221; said General Mills Chairman and Chief Executive Officer Jeff Harmening.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40836990/general-mills-offloads-us-canadian-yogurt-divisions-in-2-1b-deal-amid-competition-and-market-cha" rel="noreferrer noopener">General Mills Offloads US, Canadian Yogurt Divisions In $2.1B Deal Amid Competition And Market Challenges: Details</a>
Operating profit fell to $832 million, representing an 11% decrease, and adjusted operating profit was $865 million, down 4% when measured in constant currency.
Adjusted gross margin of 35.4% of net sales essentially matched year-ago results, with benefits from HMM cost savings offset by input cost inflation and unfavorable net price realization and mix.
General Mills recently announced that it has entered into definitive agreements to sell its North American Yogurt business to Lactalis and Sodiaal, two leading French dairy companies, in cash <a target="_blank" href="https://www.benzinga.com//node/40836990" rel="noreferrer noopener">transactions valued at an aggregate $2.1 billion.&nbsp;</a>
Outlook: General Mills has reaffirmed its financial targets for fiscal 2025, expecting organic net sales to range from flat to an increase of 1%, while adjusted diluted EPS is <a href="https://www.benzinga.com/calendars/guidance">anticipated to fluctuate between a decrease of 1% and an increase of 1% in constant currency.</a>
General Mills expects volume trends in its categories will gradually improve in fiscal 2025, though full-year category dollar growth is expected to be below the company&#8217;s long-term growth projections.
The company said it expects to reinvest potential margin flexibility back into the business, including plans for a significant increase in brand-building investment in fiscal 2025 to drive improved volume performance.
Price Action: GIS shares are trading lower by 1.34% to $73.50 premarket at last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/09/40915551/wall-street-on-edge-as-traders-look-forward-to-feds-first-rate-cut-in-4-5-years-strategist-says-thi" target="_blank" rel="noreferrer noopener">Wall Street On Edge As Traders Look Forward To Fed&#8217;s First Rate Cut In 4.5 Years: Strategist Says This Will Dictate How Stocks Perform Longer Term</a></li>
</ul>

Movers

General

General Mills Faces Mixed Q1 Results: Earnings Win, Sales Drop, And Big Bets On 2025 Rebound

General Mills Says It Expects Volume Trends In Its Categories To Gradually Improve In Fiscal 2025, Though Full-year Category Dollar Growth Is Expected To Be Below Company's Long-term Growth Projections

Based on the above assumptions, the company reaffirmed its full-year fiscal 2025 financial targets:
<ul>
<li>Organic net sales&nbsp;are expected to range between flat and up&nbsp;1 percent.</li>
<li>Adjusted operating profit&nbsp;is expected to range between down&nbsp;2 percent&nbsp;and flat in constant currency.</li>
<li>Adjusted diluted EPS&nbsp;is expected to range between down&nbsp;1 percent&nbsp;and up&nbsp;1 percent&nbsp;in constant currency.</li>
<li>Free cash flow conversion&nbsp;is expected to be at least&nbsp;95 percent&nbsp;of adjusted after-tax earnings.</li>
<li>These targets do not reflect an impact from the proposed North American Yogurt divestitures. The company expects to incorporate the divestitures into its&nbsp;outlook&nbsp;after the transactions are closed.</li>
</ul>

General Mills Reaffirmed Its Fiscal 2025 Financial Targets: Organic Net Sales Are Expected To Range Between Flat And Up 1%; Adjusted Diluted Eps Is Expected To Range Between Down 1% And Up 1%

General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) reported quarterly earnings of $1.07 per share which beat the analyst consensus estimate of $1.06 by 0.94 percent. This is a 1.83 percent decrease over earnings of $1.09 per share from the same period last year. The company reported quarterly sales of $4.85 billion which beat the analyst consensus estimate of $4.80 billion by 1.00 percent. This is a 1.16 percent decrease over sales of $4.91 billion the same period last year.

Earnings Beats

General Mills Q1 Adj $1.07 Beats $1.06 Estimate, Sales $4.85B Beat $4.80B Estimate

The index futures are slightly higher early Wednesday as traders turn defensive ahead of the<a href="https://www.benzinga.com/markets/equities/24/09/40913751/50-or-25-bps-fed-rate-cut-markets-and-economists-at-odds-what-does-steeper-reduction-mean-for-in"> all-important Federal Reserve meeting of the year.</a> As is characteristic of a Fed decision day, stocks could mostly move sidewards in a narrow range until the rate decision is announced. The trading direction will likely depend on several factors, including any changes in the Fed&#8217;s language in the post-meeting policy statement, the growth, inflation, and rate forecasts provided in the Summary of Economic Projections, and Chair Jerome Powell&#8216;s comments during the subsequent press conference.
While the betting and futures market suggests a 50 basis point could be on the table, most economists are resigned to a more modest 25 bps cut. Some strategists even worry a bigger cut could be interpreted as a confession from the central bank that the economic conditions are a cause for concern.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.17%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.14%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.16%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.17%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Tuesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) added 0.10% to $563.66 and the Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) gained 0.11% to $473.99, according to <a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
On Tuesday, a stronger-than-expected increase in August retail sales set in motion a strong buying wave, which, however, could not be sustained in the afternoon session. As a result, the major indices ended narrowly mixed. The S&amp;P 500 rose for a seven straight session, hitting an intra-day high amid the early buying. The broader gauge, however, came off the high and ended marginally higher. It is now at its best level since Aug. 23.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.20%</td>
<td>17,628.06</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.03%</td>
<td>5,634.58</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.04%</td>
<td>41,606.18</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.74%</td>
<td>2,205.48</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Offering his take on the focus of the market, Scott Merkle, managing partner of SLB Capital Advisors, said a cut is locked in, and the &#8220;market will now turn its attention to deciphering the meaning of a 25 basis point versus a 50 basis point reduction.&#8221; The strategist expects a reduction by 25 basis points from the 5.25%-5.50% level where the Fed funds rate is currently.  
&#8220;The Fed is likely to start small to provide an opportunity to adjust in future periods,&#8221; he said, adding that lower rates will reinvigorate M&amp;A activity, the sale-leaseback market and lower financing costs.
LPL Financial Chief Technical Strategist Adam Turnquist said, that in the last nine major rate hiking cycles since the 1970s, the S&amp;P 500 has generated mixed, modest returns over the three months following the first cut, with 12-month average and median returns of 5.5% and 10.8%, respectively.
The 12-month maximum drawdowns following the first cut have been around 19%–20%, larger declines than the average maximum drawdown for all years since 1974 of 14.4%, he added. &#8220;How the economy holds up and if we enter or avoid a recession will ultimately dictate how stocks perform over the longer term,&#8221; he added.
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Upcoming Economic Data:
<ul>
<li>The Commerce Department will release the housing starts and building permits report at 8:30 a.m. EDT. Economists, on average, expect housing starts to come in at a seasonally adjusted annual rate of 1.31 million units in August, up from a 1.24 million rate in July. Building permits, a measure of future activity, may have remained almost unchanged at 1.41 million units.</li>
<li>The Energy Information Administration is scheduled to release its weekly petroleum status report at 10:30 a.m. EDT.</li>
<li>The Federal Reserve will release the post-meeting policy statement, along with the Summary of Economic Projections at 2 p.m. EDT. Powell will host a press conference at 2:30 p.m. EDT to explain away the rate decision and the rate outlook.</li>
</ul>
Stocks In Focus:
<ul>
<li>United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) climbed over 3% <a href="https://www.benzinga.com/premarket">in premarket trading</a> after the Committee on Foreign Investment in the United States reportedly allowed time for the steelmaker&#8217;s pursuer Nippon Steel to close the deal, thereby keeping it alive.</li>
<li>General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) is due to <a href="https://www.benzinga.com/calendars/earnings">release its earnings report ahead of the market opening</a>, while Steelcase Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCS#NYSE">SCS</a>) will report after the close.</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures fell sharply, extending their steep loss from Tuesday, while gold futures rose modestly, ahead of the Fed decision. The benchmark 10-year Treasury note rose 2.4 points to 3.666%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) gained and approached the $60K psychological resistance.
In the currency market, the dollar was weaker against its major counterparts.
The major Asian markets that were open showed nervousness and settled mostly lower amid apprehension ahead of the U.S. Fed decision. The Australian, Japanese and Chinese markets bucked the downtrend, while the Hong Kong and South Korean markets were closed for public holidays.
European stocks were mostly lower in early trading, as market participants digested domestic inflation data and looked forward to the Fed decision. 
<ul>
<li>Read Next:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40891378/ahead-of-fomc-meeting-paul-krugman-says-fed-rates-will-be-elevated-even-with-50-bps" target="_blank" rel="noreferrer noopener">Ahead Of FOMC Meeting Paul Krugman Says Fed Rates Will Be Elevated Even With 50 Bps Cut: &#8216;Argument For Incrementalism Is Very Weak&#8217;</a></li>
</ul>
Image Via Shutterstock

Futures

Previews

Federal Reserve

$BTC

Wall Street On Edge As Traders Look Forward To Fed's First Rate Cut In 4.5 Years: Strategist Says This Will Dictate How Stocks Perform Longer Term

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, but the index remained in the &#8220;Neutral&#8221; zone on Tuesday.
U.S. stocks settled mixed on Tuesday, with the S&amp;P 500 closing the session near the flatline after surging to a record high. Major indices recorded gains last week, with the S&amp;P 500 gaining 4% and the Nasdaq adding 5.9%. The Dow also climbed 2.6% last week.
The Federal Reserve is scheduled to announce its policy decision on Wednesday and is widely expected to cut interest rates.
Compass Minerals International, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMP#NYSE">CMP</a>) shares jumped 21% on Tuesday after the company announced preliminary third-quarter revenue above estimates. Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) shares gained 2.7% after the company announced a strategic collaboration with AWS to help advance US-based chip manufacturing.
On the economic data front, U.S. retail sales rose 0.1% month-over-month in August compared to a revised 1.1% gain in July, topping market estimates of a 0.2% decline. The NAHB/Wells Fargo Housing Market Index climbed to 41 in September versus 39 in the prior month. Total business inventories rose by 0.4% month-over-month in July compared to a 0.3% gain in June, topping market expectations of a 0.3% increase.
Most sectors on the S&amp;P 500 closed on a positive note, with consumer discretionary, energy, and industrials stocks recording the biggest gains on Tuesday. However, healthcare and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 16 points to 41,606.18 on Tuesday. The S&amp;P 500 rose 0.03% to 5,634.58, while the Nasdaq Composite rose 0.20% at 17,628.06 during Tuesday's session.
Investors are awaiting earnings results from General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>), Steelcase Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCS#NYSE">SCS</a>), and Sangoma Technologies Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SANG#NASDAQ">SANG</a>) today.
What is CNN Business Fear &amp; Greed Index?
At a current reading of 54.9, the index remained in the &#8220;Neutral&#8221; zone on Tuesday, versus a prior reading of 54.1.
The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
Read Next:<a href="Cramer: Hewlett Packard Is A 'Very Inexpensive' Stock, Likes This Big Tech Stock"> </a>
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<li><a href="https://www.benzinga.com/24/09/40898216/cramer-hewlett-packard-is-a-very-inexpensive-stock-likes-this-big-tech-stock">Cramer: Hewlett Packard Is A &#8216;Very Inexpensive&#8217; Stock, Likes This Big Tech Stock</a></li>
</ul>

Long Ideas

INTC

SANG

US Stocks Settle Mixed Ahead Of Fed's Rate Decision: Investor Sentiment Improves, But Fear & Greed Index Remains In 'Neutral' Zone

With U.S. stock futures trading higher this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:
<ul>
<li>Wall Street expects General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) to report quarterly earnings at $1.06 per share on revenue of $4.80 billion before the opening bell, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>. General Mills shares rose 0.4% to $74.83 in after-hours trading.</li>
<li>23andMe Holding Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ME#NASDAQ">ME</a>) disclosed that the independent directors resigned from the Board. 23andMe shares dipped 15% to $0.29 in the after-hours trading session.</li>
<li>Analysts are expecting Steelcase Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCS#NYSE">SCS</a>) to post quarterly earnings at 37 cents per share on revenue of $864.10 million for the recent quarter. Steelcase shares gained 0.8% to $14.12 in the after-hours trading session.</li>
</ul>
Check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
<ul>
<li>Intuitive Machines, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>) said it was awarded a NASA Near Space Network contract for communication and navigation services, with a maximum potential value of $4.82 billion. Intuitive Machines shares jumped 55.6% to $8.40 in the after-hours trading session.</li>
<li>Analysts expect Sangoma Technologies Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SANG#NASDAQ">SANG</a>) to post a quarterly loss at 3 cents per share on revenue of $61.03 million after the closing bell. Sangoma Technologies shares 6% to $6.37 in after-hours trading.</li>
</ul>
Check This Out: 
<ul>
<li><a href="Cramer: Hewlett Packard Is A 'Very Inexpensive' Stock, Likes This Big Tech Stock">Cramer: </a><a href="https://www.benzinga.com/24/09/40898216/cramer-hewlett-packard-is-a-very-inexpensive-stock-likes-this-big-tech-stock">Hewlett </a><a href="Cramer: Hewlett Packard Is A 'Very Inexpensive' Stock, Likes This Big Tech Stock">Packard Is A &#8216;Very Inexpensive&#8217; Stock, Likes This Big Tech Stock</a></li>
</ul>
Image generated using AI tools

LUNR

General Mills, Steelcase And 3 Stocks To Watch Heading Into Wednesday

B of A Securities analyst Bryan Spillane maintains General Mills (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) with a Neutral and raises the price target from $75 to $78.

B of A Securities Maintains Neutral on General Mills, Raises Price Target to $78

J.P. Morgan analyst Kenneth Goldman maintained a Hold rating on General Mills (GIS – Research Report) today and set a price target of $67.00. The c...

General Mills (GIS) Gets a Hold from J.P. Morgan

General Mills (GIS – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Peter Galbo fro...

General Mills: Hold Rating Amid Strategic Portfolio Reshaping and Moderate Growth Outlook

General Mills ( ($GIS) ) just unveiled an announcement. General Mills, Inc. has terminated its previous credit agreement and entered into a new fiv...

General Mills Secures New $2.7 Billion Credit Facility

Technological advancements and shifting consumer preferences are propelling growth in the food service industry. Thus, investing in strong food stocks PepsiCo (PEP), General Mills (GIS), and Archer-Daniels-Midland (ADM) presents an opportunity for stability and potential growth, thanks to their consistent dividends amid industry transformation. Read on… The food service industry has undergone remarkable changes in recent years, primarily fueled by digitalization and evolving consumer demands. As we step into 2024, it promises to be a pivotal year for transformation and innovation in this sector. New technologies and trends are creating exciting opportunities for growth.
In this dynamic environment, investing in fundamentally robust food stocks PepsiCo, Inc. (<a href="https://stocknews.com/stock/PEP/">PEP</a>), General Mills, Inc. (<a href="https://stocknews.com/stock/GIS/">GIS</a>) and Archer-Daniels-Midland Company (<a href="https://stocknews.com/stock/ADM/">ADM</a>) appears to be a prudent decision. These companies exhibit resilience and pay consistent dividends, offering investors both stability and potential growth amidst the shifting tides of the food industry.
As technology relentlessly advances, it emerges as a key driver for the food service sector. The <a href="https://www.globalsources.com/knowledge/food-processing-industry-trends/">integration of mobile payments</a>, online ordering systems, and smart kitchen equipment is enhancing operational efficiency while significantly elevating the customer experience.
However, the future of food systems also hinges on adopting <a href="https://www.weforum.org/agenda/2024/05/innovators-reimagine-the-future-of-food-systems/">sustainable agricultural practices</a> to combat water scarcity and climate change effectively. Rapid advancements in artificial intelligence (AI) and data analytics are empowering farmers to make informed decisions regarding resource allocation.
This technological evolution enhances yields while minimizing environmental impacts. By embracing such technologies, the industry is paving the way for a more sustainable future.
Moreover, as the <a href="https://tastewise.io/blog/top-foodservice-trends">demand for healthy eating</a> escalates, catering companies are reimagining their menu designs to align with this growing trend. The rising popularity of low-sugar, low-fat, organic, and plant-based foods is catering to consumer health needs and also opening new markets for businesses eager to adapt to changing preferences.
Additionally, the surge in online shopping has profoundly impacted the food and beverage landscape. The percentage of food and beverage sales within total retail e-commerce has climbed from 9.3% in 2017 to <a href="https://www.statista.com/topics/1660/food-retail/#topicOverview">nearly 16% in 2023</a>, with projections suggesting it will reach 21.5% by 2027.
According to Mordor Intelligence, the United States food service market is on track to reach $1.37 trillion by 2029, showcasing <a href="https://www.mordorintelligence.com/industry-reports/us-food-service-restaurant-market">a CAGR of 10.74%</a>. Now, let's take a closer look at the fundamentals of the three food stocks, beginning with #3. These stocks pay regular dividends and could offer stability through a consistent and growing income stream.
Stock #3: PepsiCo, Inc. (<a href="https://stocknews.com/stock/PEP/">PEP</a>)
PEP is a beverage and food company with segments including Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia (AMESA); and Asia Pacific, Australia and New Zealand and China Region (APAC). Its brands include Lays, Doritos, and Cheetos.
On October 1, PEP announced the completion of a <a href="https://www.pepsico.com/our-stories/press-release/pepsico-to-acquire-siete-foods-for-12-billion10012024">definitive agreement</a> to acquire Garza Food Ventures LLC, dba Siete Foods, a Mexican-American food brand, for a total transaction value of $1.2 billion. As PEP expands its multicultural portfolio, it is set to benefit from catering to a larger population and increase its growth prospects.
On July 25, PEP <a href="https://www.pepsico.com/our-stories/press-release/pepsico-declares-quarterly-dividend07252024">announced a quarterly dividend</a> of $1.355 per share, marking a 7% increase compared to the same period last year. This reflects PEP's commitment to rewarding shareholders. The dividend was payable on September 30, 2024, to shareholders of record as of September 6, 2024.
PEP has increased its dividends for 51 consecutive years. It pays an annual dividend of $5.42, which translates to a 3.11% yield at the current price level. The stock's dividend payouts have increased at a CAGR of 7.7% over the past three years. Moreover, its four-year average dividend yield is 2.74%.
PEP's net revenue for the fiscal third quarter, which ended September 7, 2024, came in at $23.32 billion. Its non-GAAP operating profit increased 3.6% year-over-year to $4.18 billion. Moreover, non-GAAP net income attributable to PEP came in at $3.19 billion or $2.31 per share, up 2.6% and 2.7% from the prior year's period, respectively.
Analysts expect PEP's revenue for the fiscal fourth quarter (ending December 2024) to marginally increase year-over-year to $27.98 billion. Its <a href="https://www.investopedia.com/terms/e/eps.asp">EPS</a> for the ongoing quarter is expected to grow 9.4% year-over-year to $1.95. Furthermore, PEP surpassed the consensus EPS in each of the trailing four quarters, which is impressive.
PEP's stock has surged 4.2% over the past six months and 8.3% over the past year to close the last trading session at $174.48.
PEP's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its robust outlook. It has an A grade for Quality and a B for Growth. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
PEP is ranked #11 in the B-rated 33-stock <a href="https://stocknews.com/category/beverages/">Beverages</a> industry. Beyond what is stated above, we have also rated PEP for Sentiment, Stability, Momentum, and Value. Get all PEP ratings <a href="https://stocknews.com/stock/PEP/">here</a>.
Stock #2: General Mills, Inc. (<a href="https://stocknews.com/stock/GIS/">GIS</a>)
GIS is a global manufacturer of branded consumer foods with over 100 brands in 100 countries. Its offerings include cereals, yogurt, frozen meals, snacks, pet food, and ice cream parlors. The company operates through North America Retail; International; Pet; and North America Foodservice segments.
On September 12, GIS announced a <a href="https://investors.generalmills.com/press-releases/press-release-details/2024/General-Mills-Announces-Agreements-to-Sell-Its-North-American-Yogurt-Business-to-Lactalis-and-Sodiaal/">definitive agreement</a> to sell its North American Yogurt business to Lactalis and Sodiaal, two leading French dairy companies, for a total transaction cost of $2.1 billion. This would allow GIS to refocus on global platforms and local gem brands, aiming for stronger growth prospects and improved margins.
On September 24, GIS announced a <a href="https://investors.generalmills.com/press-releases/press-release-details/2024/General-Mills-Quarterly-Dividend-Declared/default.aspx">quarterly dividend</a> of $0.60 per share, payable November 1, 2024, to shareholders of record as of October 10, 2024. Impressively, GIS has maintained an uninterrupted dividend payment streak for 126 years, reflecting its long-term financial stability.
Furthermore, GIS has raised its dividends for five consecutive years, paying an annual dividend of $2.40, which translates to a 3.38% yield at the current price level. Its dividend payouts have grown at a CAGR of 5.3% over the past three years, while its four-year average dividend yield is 3.15%.
For the fiscal 2025 first quarter, which ended on August 25, 2024, GIS reported net sales of $4.85 billion. Its adjusted operating profit reached $865.30 million. Moreover, adjusted net earnings attributable to GIS were $605.90 million, or $1.07 per share.
As of August 25, 2024, the company's cash and cash equivalents rose to $468.10 million, up from $418 million on May 26, 2024.
Street expects GIS' revenue for the fiscal year ending May 2026 to marginally increase year-over-year to $19.97 billion. Its EPS for the same period is expected to grow 4.1% from the prior year to $4.70. In addition, GIS surpassed the consensus EPS in all four trailing quarters.
Shares of GIS have surged 4.7% over the past six months and 12.3% over the past year to close the last trading session at $71.
GIS' fundamentals are reflected in its POWR Ratings. The stock has a B grade for Quality. It is ranked #40 out of 74 stocks in the A-rated <a href="https://stocknews.com/category/food-makers/">Food Makers</a> industry.
<a href="https://stocknews.com/stock/GIS/">Click here</a> for the additional POWR Ratings for Value, Sentiment, Growth, Momentum, and Stability for GIS.
Stock #1: Archer-Daniels-Midland Company (<a href="https://stocknews.com/stock/ADM/">ADM</a>)
ADM focuses on human and animal nutrition as an agricultural supply chain manager and processor. It transports, stores, processes, and merchandises agricultural commodities, ingredients, flavors, and solutions. The company operates through three segments: Ag Services and Oilseeds; Carbohydrate Solutions; and Nutrition.
On August 19, ADM announced a <a href="https://investors.adm.com/news/news-details/2024/ADM-and-Farmers-Business-Network-Launch-Gradable-Joint-Venture-to-Accelerate-Adoption-of-Regenerative-and-Sustainable-Ag-Practices/default.aspx">joint venture</a> with Farmers Business Network, a digital marketplace and farmer-to-farmer network called Gradable. The collaboration aims to empower more farmers and buyers to engage with grain produced through sustainable and regenerative practices, enhancing the company's reputation in the industry.
On August 7, ADM declared <a href="https://investors.adm.com/news/news-details/2024/ADM-Declares-Cash-Dividend-6d5663df2/default.aspx">a cash dividend of $0.50</a> per share on its common stock, which was payable on September 11, 2024, to shareholders of record as of August 21, 2024. Notably, ADM has consistently paid dividends for 92 consecutive years, highlighting its commitment to shareholders.
Plus, ADM has raised its dividends for 30 consecutive years, currently offering an annual dividend of $2, which equates to a 3.43% yield at the current price level. Furthermore, its dividend payouts have grown at a CAGR of 9.9% over the past three years, with a four-year average dividend yield of 2.40%.
ADM generated $22.25 billion in revenues for the fiscal 2024 second quarter, which ended on June 30. In addition, the company reported a gross profit of $1.40 billion and achieved adjusted net earnings of $508 million, or $1.03 per share, during the period.
The consensus revenue estimate of $90.05 billion for the fiscal year ending December 2025 reflects a rise of 2.3% year-over-year. Its EPS for the same period is expected to increase 1.7% year-over-year to $5.34.
Over the past five days, shares of ADM have surged 1% to close the last trading session at $58.29.
ADM's POWR Ratings reflect its fundamentals. The stock has a B grade for Value. It is ranked #12 out of 23 stocks in the <a href="https://stocknews.com/category/agriculture/">Agriculture</a> industry.
To access ADM's Momentum, Quality, Growth, Stability, and Sentiment ratings, click <a href="https://stocknews.com/stock/ADM/">here</a>.
What To Do Next?
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PEP shares were unchanged in premarket trading Thursday. Year-to-date, PEP has gained 5.13%, versus a 23.66% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/pep-gis-adm-3-food-stocks-that-deliver-consistent-dividends/>3 Food Stocks That Deliver Consistent Dividends</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Food Stocks That Deliver Consistent Dividends

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