General Mills (GIS): Billion-dollar yogurt distortions [Q1 2027]

General Mills' reported profit collapse is mostly accounting noise, but real weakness in pet food and paused buybacks signal a defensive pivot.

• Optical profit collapse: Operating profit fell 63% YoY, but that's mostly a comp against a prior-year $1B gain from the U.S. yogurt divestiture; revenue only fell ~3% to $4.39B with organic sales flat.
• Buybacks fully paused: CFO Kofi Bruce said General Mills does not expect to repurchase shares in the near term, targeting a 3x net debt/adjusted EBITDA ratio and deprioritizing M&A.

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