General Mills

General Mills generated $19.5 billion revenue in fiscal 2025 (ended May), down 1.9% from 2024 as inflation-weary consumers reduced packaged food purchases. Net income declined 8% to $2.3 billion with adjusted EPS down 10.5% to $4.21, yet the company increased its dividend for the 31st consecutive year, prioritizing shareholder distributions over growth investment. The Snacks division generated $4.2 billion and Cereal $3.1 billion, representing 37% of total revenue concentrated in mature categories facing structural decline.

Like an oak tree allocating fixed resources between acorn production and root maintenance during drought, General Mills faces the classic trade-off between rewarding current investors and funding future adaptation. The company achieved 1% organic pound volume growth in the first half of fiscal 2025, a 4-point improvement over fiscal 2024, suggesting metabolic stabilization after precipitous decline. North America Retail held or grew pound share in 64% of top 10 priority businesses including cereal, refrigerated dough, and fruit snacks, defensive wins that prevent catastrophic market share loss.

The International segment grew 2% to $2.8 billion and Pet grew 4% to $2.47 billion in fiscal 2025, demonstrating portfolio diversification benefits. But the core North America Retail business fell 10% in Q4 2025 driven by the Canada yogurt divestiture and volume weakness, forcing capital reallocation from mature cereal franchises toward higher-growth adjacencies. General Mills maintains iconic brand positions in Cheerios, Betty Crocker, and Pillsbury that create retail distribution power and manufacturing scale advantages. Whether these assets represent durable competitive moats or stranded capital depends on whether processed food consumption patterns revert or continue secularizing.