General Mills (GIS): Evaluating Valuation as Supply Chain Restructuring Targets $82 Million in Cost Savings

General Mills (NYSE:GIS) is shaking up its operations with a major initiative aimed at making its supply chain more competitive. The company plans to close three Missouri manufacturing facilities, a move expected to bring about $82 million in restructuring costs.

See our latest analysis for General Mills.

The supply chain overhaul follows other headline moments for General Mills this year, including a dividend reaffirmation and a quirky Progresso brand campaign just as grilling season peaked. Despite stable operations and fresh product innovation, the stock’s momentum has slackened. General Mills delivered a 1-year total shareholder return of -0.29%, and its share price lags behind consumer staples peers.

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With the stock still trading at a discount to analyst targets, but company growth stalled and restructuring underway, investors have to wonder: is this a true bargain, or is the market already looking ahead?

Most Popular Narrative: 6.6% Undervalued

General Mills' narrative fair value of $53.89 suggests modest upside from its recent close at $50.36. This indicates potential for rerating as future investments reshape its earnings outlook.

General Mills' strategy of fewer, but bigger innovations in fiscal '26 involves focusing on a smaller number of larger innovations. While this may benefit future revenue growth, the time required to develop and execute such innovations means immediate impacts on earnings might be limited.

Read the complete narrative.

What secrets are packed into this fair value? Analysts are betting on just a few big moves reshaping margins, but their math might surprise you. There is one financial trend underlying the bullish target. Are you curious what it is?

Result: Fair Value of $53.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, strong marketing or a rebound in core snack lines could quickly boost sales and challenge expectations of sluggish growth and delayed earnings recovery.

Find out about the key risks to this General Mills narrative.

Build Your Own General Mills Narrative

If you would rather form your own view or dig deeper into the numbers, you can put your own story together in just a few minutes, and Do it your way.

A great starting point for your General Mills research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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