10:31 AM EDT, 09/15/2025 (MT Newswires) -- General Mills ( GIS ) is expected to report fiscal first-quarter results below market estimates amid competitive pressures and macroeconomic uncertainties, RBC Capital Markets said in a Monday client note.

The brokerage forecasts the Cheerios maker to report per-share earnings of $0.79 and revenue of $4.42 billion for its first quarter, while the current consensus on FactSet is for GAAP and non-GAAP EPS of $0.83 and $0.81, respectively, and sales of $4.52 billion. The company is scheduled to release its latest quarterly earnings on Wednesday.

RBC said its estimates are below the Street's views due to factors such as headwinds related to wheat prices, the continued negative impact of trade expense timing and sequentially tougher comparables. The brokerage's data indicates General Mills ( GIS ) saw sequential improvement in year-over-year sales trends, with the August quarter down roughly 2.5% on an annual basis, compared with a 3% decline in the May quarter.

Soup and cold cereal logged the largest sequential decreases, while pet, pet treats and snack and granola bars have seen some improvement, RBC's co-head of global consumer and retail research Nik Modi wrote in the note.

While annual consumption trends have shown sequential improvement, General Mills' ( GIS ) shares have continued to decline amid soft investor sentiment surrounding packaged food, while the company's fundamentals "have yet to fully turn," RBC said. The stock has lost 21% so far this year.

"With heightened competitive pressures and a difficult macro backdrop, (General Mills ( GIS )) will need to prove that it can return to growth in order for investors to regain confidence in the company's executional capability," according to Modi.

RBC doesn't expect the food producer to make changes to its fiscal 2026 outlook when it releases results later this week, having already reiterated its guidance earlier this month. The operating environment has "largely remained intact" since General Mills ( GIS ) last reported earnings, and the company recently said it has had a good start to the fiscal year, the brokerage added.

In June, General Mills ( GIS ) said it expected fiscal 2026 adjusted EPS to decline by 10% to 15% in constant currency and organic sales to be down 1% to up 1%.

RBC has an outperform rating on General Mills' ( GIS ) stock with a price target of $63.

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