Yahoo Finance Live anchors discuss stock performance for General Mills.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: Let's also take a brief look at shares of General Mills, ticker symbol GIS. It is moving on some news this morning, beating earnings expectations on both the top and bottom lines. It's holding on to some of those gains that we were seeing premarket, given some of the shifts from premarket into the trading session. I had to catch myself there for a moment.

We are up, though. Holding on to those gains by about 3 and 1/2% The company also raised its sales guidance as they now expect organic net sales to rise between 6% and 7% in fiscal year 2023 here.

JULIE HYMAN: Let's just put a fine point on this.

BRAD SMITH: Yeah.

JULIE HYMAN: This company raised its forecast--

BRAD SMITH: Yes.

JULIE HYMAN: --which is definitely in the minority of what we've been hearing from companies, right? We've had a lot of industrials cut their forecasts. We've had chipmakers cut their forecast. We've had retailers cut their forecasts. But cereal, cereal is doing fine. Well, cereal and lots of other stuff that General Mills now sold-- sells, including Bisquick, including, I believe they bought a pet food business as well. So there's a lot in there here.

But the company has been raising prices. That has been helping its numbers as well. Interesting here that organic net sales in the first quarter. So that's when you take out currency fluctuations, you take out acquisitions. We're up by 10%, which is better than estimated. So that pricing seems to be paying off.

BRAD SMITH: Yeah, General Mills is still a good barometer for where the consumer is leaning towards in some of their purchases on a cyclical week-in, week-out basis. And for some of the categories that are making their way to the pantries right now, have more of a shelf life. That's perhaps what consumers are leaning into as well, whether or not you can get that in a wholesale kind of bulk or if you are buying it on an individual basis.

I mean, I've got my own cereals. Everybody does, of course. But I think that's where General Mills, in this interim period of time, especially in weaker consumer confidence or consumer sentiment period, where General Mills may be looked like looked at as one of those brands that could be insulated because of their annexation to both the pantry as well as the refrigerator. And having more shelf life in those categories, too.

JULIE HYMAN: I'm just going down a little bit of a rabbit hole here to find out who makes my breakfast cereal. What is your preferred breakfast cereal first of all?

BRAD SMITH: Oh, I mean I'm a I'm a big time Cinnamon Toast Crunch fan.

JULIE HYMAN: Oh, wow, you go for the like the sweet.

BRAD SMITH: It's all about the milk afterwards.

JULIE HYMAN: You just--

BRAD SMITH: Yes, it's--

JULIE HYMAN: You just like pour some sugar right down your gullet first thing in the morning.

BRAD SMITH: What's the better way to start off the day?

JULIE HYMAN: Oh, I can think of a few ways. I like-- no surprise. I like Heritage Flakes made by Nature's Path.

BRAD SMITH: OK.

JULIE HYMAN: I don't know who owns Nature's Path. I still haven't discovered that in my googling.

BRAD SMITH: Interesting.

JULIE HYMAN: But it's just, you know, flakes. Not too sweet.

BRAD SMITH: But you know I trend-- I trend French toast sticks when I can outside of cereal.

JULIE HYMAN: Of course.

BRAD SMITH: That's where I go.

JULIE HYMAN: Of course, you do.

BRAD SMITH: It's the freezer over the cereals for me.

JULIE HYMAN: Of course.