General Mills, Inc.

The call did not include a prepared-remarks report of consolidated revenue, EPS, or gross margin in the transcript provided. Management said Q1 inflation came in around 4%, roughly at the low end of the guided range, and reiterated that Q1, Q2, and Q3 should be roughly similar, with Q4 around 6%. On margins, Kofi Bruce said inflation and HMM savings should roughly offset for the full year, and that gross margins ex the 53rd-week mechanical effect should be roughly flat; operating margin will also face a mechanical drag from incentive comp reset. Management reiterated full-year cost savings of $750 million this fiscal year, $3 billion by fiscal '30, and net debt/EBITDA is just over 4x, with a path back to 3x expected to take at least a couple of years.

Jeffrey Harmening framed the quarter as evidence that the company’s turnaround playbook is working, especially through humanization, innovation, and stronger marketing. He highlighted double-digit growth for Tiki Cat since acquisition, the return of growth in treats, and improving momentum in Big G brands like Lucky Charms, Reese’s Puffs, and Cinnamon Toast Crunch. His tone was constructive and confident, but he acknowledged there is still work to do in pet and in restoring fuller category growth.

Kofi Bruce focused on inflation, margins, leverage, and cost actions. He said Q1 inflation was about 4%, expects Q1-Q3 to be similar, and Q4 to move to around 6%; he also noted wheat is a bit higher than expected but the company is about 3/4 hedged through the year. On margins, he said inflation and HMM savings should roughly offset for the full year, gross margin should be roughly flat ex the 53rd-week effect, and operating margin will also absorb an incentive comp reset. On capital structure, he said net debt to EBITDA is just over 4x and should take at least a couple of years to return to the 3x target, aided by HMM and transformation savings.

Analysts pressed on whether NAR retail takeaway will keep improving, and Dana McNabb said the company is not guiding by quarter but expects better price/mix, more innovation, and continued improvement through the year, with Totino’s and fruit snacks still key work items. Questions on pet centered on dog-food weakness and inventory volatility; management said Wilderness is the main issue in dry dog, wet dog is performing as planned, and inventory should remain a low-single-digit headwind over the year. There were also questions on inflation, pricing, media spend, and AI/e-commerce; management said media spend is up modestly, e-commerce is already over 20% of human food sales and 30% of pet sales, and they are preparing for agentic commerce by improving discoverability, product data, and ease of purchase.