- General Mills (GIS) shares gained 4% on Feb. 21 after the cereal maker increased its guidance for fiscal 2023, which ends in May.
- The company said that moves to reconfigure its portfolio over the past few years helped drive the positive performance.
- General Mills also benefited from price increases, and the CEO noted that the company has not seen any pushback on the price hikes.
General Mills (GIS) was the best-performing stock in the S&P 500 on Feb. 21 after the maker of Cheerios cereal and Blue Buffalo pet food boosted its outlook for fiscal 2023, which ends in May.
General Mills raised its forecast for organic net sales growth to 10% from its December estimate of 8% to 9%, and increased its earnings per share (EPS) guidance to a gain of 7% to 8%, up from 4% to 6% previously.
The company credits its improved performance and guidance on "significant actions" taken to reshape its portfolio over the past several years. General Mills noted it has turned over almost 20% of its lineup since fiscal 2018 through acquisitions and divestitures.
General Mills has also benefited from price increases, and CEO Jeffrey Harmening told a consumer analyst conference that the company has not seen any pushback on those hikes in the last few quarters. However, he noted that he is “frustrated" by pricing, adding, "I'm sure customers are too, but that's the environment we're living in."
Shares of General Mills added 4% on Feb. 21 and are up 17% in the past 12 months.