General Mills Cuts FY26 EPS Forecast to $3.44, Yields 5% Dividend
BofA lowered General Mills’ price target to $55 and cut its FY26 adjusted EPS forecast to $3.44 from $3.70, citing weaker organic net sales now seen down 1.5%-2%. Shares yield 5% with a 55% payout ratio as the company braces for near-term margin pressures and a planned investment year.
1. BofA Lowers Price Target and EPS Forecast
Bank of America reduced General Mills’ price target to $55 from $61 and cut its fiscal 2026 adjusted EPS forecast to $3.44 from $3.70, highlighting headwinds in North America retail operations.
2. Weaker Organic Sales and Updated FY26 Guidance
Management now anticipates organic net sales decline of 1.5%-2%, versus a prior range of –1% to +1%, and expects adjusted operating profit and diluted EPS to fall 16%-20% in constant currency, reflecting consumer uncertainty and higher cost of volume recovery.
3. High Yield Dividend and Investment Year
General Mills offers a 5% dividend yield with a 55% payout ratio, drawing on a 127-year history of distributions, while earmarking resources for planned investments that could pressure margins in the near term.