10:48 AM EDT, 09/19/2024 (MT Newswires) -- General Mills' ( GIS ) fiscal Q1 results were "largely in line with Street expectations," RBC Capital Markets said Thursday in a note to clients.

"While this quarter's results were on point, the remainder of the year is a 'wait and see' on whether [General Mills' ( GIS )] focus on the core will pay off," the note said.

The company is "competing via innovation, merchandising, and promotions this year, but with a strategy similar to that of its packaged food peers, it all comes down to ability to execute in market and limit consumers shifting to other center-of-store substitutes (perimeter, private label, etc)," RBC said.

Meanwhile, the company's sale of its North American yogurt business to Lactalis and Sodiaal is "an overall positive given that both the topline growth and margin profile of the yogurt business meaningfully trailed total company averages," the note said.

RBC reiterated General Mills' ( GIS ) sector perform rating and $70 price target.

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