General Mills: The Erosion Of Brand Values Continues - Sell Before The Dividend Gets Cut

Alan Galecki562 FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryGeneral Mills remains a Sell as Q2 FY26 results were weak and the outlook signals subpar growth vs. long-term targets.GIS faces persistent headwinds: declining pricing power, volume pressures, and intensifying competition from private-label brands.Balance sheet quality continues to deteriorate, with rising net debt ($13B) and increasing intangible assets heightening the risk of asset write-downs.Dividend safety is likely to erode over time as free cash flow declines and buybacks become unsustainable without divestiture proceeds. PM Images/DigitalVision via Getty Images Introduction In my previous articles about General Mills (GIS), I was not optimistic about the company’s prospects, rating its stock a sell. Since my last analysis, shares have continued to fall. My coverageThis article was written byAlan Galecki562 FollowersFollowAlways on the hunt for undervalued, promising stocks with a focus on risk and reward. Limited risks and decent to high upside by knowing what one's owning. I strongly believe that the best investment ideas are often the simplest. If contrarian, the better.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.