12:12 PM EST, 12/19/2024 (MT Newswires) -- General Mills ( GIS ) is set to face a "tough" upcoming season in packaged food, with challenges to its performance expected to persist near term, RBC Capital Markets said in a Thursday note.

"While key areas of the business are improving, we expect the dynamics that are currently hampering aggregate performance to continue in the near term," the investment firm said.

General Mills ( GIS ) reported fiscal Q2 adjusted earnings Wednesday of $1.40 per diluted share, up from $1.25 a year earlier, as net sales increased to $5.24 billion from $5.14 billion. However, the company lowered its outlook for fiscal 2025 adjusted earnings per share due to its planned increase in promotional investment, RBC noted.

The investment firm also highlighted that General Mills' ( GIS ) management expects headwinds to continue from "challenging" consumer trends in China.

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

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