General Mills Stock Drops Nearly 22% in September Amid Earnings Woes and New CEO Appointment
In September 2026, General Mills (NYSE: GIS) experienced a nearly 22% decline in its stock price following disappointing earnings results and the announcement of a new CEO. The company reported fiscal Q1 2027 sales of $4.4 billion and adjusted EPS of $0.75, both below year-over-year levels despite beating analyst estimates. All three U.S.-based business units saw declining sales, prompting General Mills to reaffirm its full-year guidance for a potential net sales decline between -1.5% and +0.5%, with adjusted EPS expected at $3–$3.20 compared to $3.55 in 2026. Analysts responded by lowering price targets, including Bank of America’s Peter Galbo reducing his fair value estimate from $43 to $40 per share and maintaining a neutral stance. Bernstein SocGen's Alexia Howard also cut her target to $30 while keeping an underperform rating. The stock sell-off was further fueled by the appointment of Dana McNabb, a long-time company veteran, as CEO in January 2027. Investors viewed this internal promotion with skepticism, fearing it might signal resistance to change rather than innovation. The broader concern is that General Mills remains out of step with evolving consumer preferences toward healthier eating and has continued focusing on its traditional core brands like Cheerios and Häagen-Dazs.
Tickers: $GIS
Topics: Earnings Report General Mills Investor Sentiment Stock Performance