Sold my entire GIS position today. Done. (General Mills). This stock is a complete wealth destroyer
u/Plus_Seesaw2023 ·
Reddit — r/ValueInvesting
· March 11, 2026 at 14:18
· ⬆ 102 pts
· 💬 165 comments
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Summary
The author announces they have sold their entire position in General Mills (GIS) after a 45% drop, citing slashed guidance, declining organic sales, and a failing corporate strategy.
The author argues that GIS is a value trap at an 8.9x P/E ratio due to deteriorating earnings quality and lack of pricing power, stating they would only reconsider the stock at $28.
Quality assessment: This is a mix of fundamental analysis and frustrated capitulation; it highlights valid concerns about organic growth and guidance cuts but carries an emotional undertone.
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I'm out. Stock's down 45% from highs, company just slashed guidance AGAIN, and management keeps missing on consumer trends.
The "Accelerate strategy" they've been pushing since 2021? Five years later and organic sales are *declining*. Pet segment struggling. North America retail soft. They're blaming "weak consumer sentiment" but CPG peers are executing better.
Trading at 8.9x P/E sounds cheap until you realize earnings quality is deteriorating. They're cutting forecasts, not beating them.
I'll look at GIS again if it hits $28 (2019 levels). That's where fundamentals actually make sense. Until then, there are better places to deploy capital in consumer staples.
Meanwhile executives are probably collecting massive salaries and bonuses while their products continue destroying people's health and shareholder value gets obliterated.
Anyone else holding or did you bail too?
[https://finviz.com/quote.ashx?t=GIS&ty=c&ta=0&p=w](https://finviz.com/quote.ashx?t=GIS&ty=c&ta=0&p=w)
GIS has slashed guidance multiple times, organic sales are declining, and the pet segment is struggling. The seemingly cheap 8.9x P/E ratio is a value trap because earnings quality is deteriorating and the company is losing its pricing power with consumers. Avoid the stock until it reaches 2019 valuation levels (around $28) where the fundamentals align with the risks. A sudden turnaround in consumer sentiment, successful restructuring of the pet segment, or an acquisition could cause the stock to rebound from these multi-year lows.
Kraft Heinz has a new CEO, shelved its split plan, has Berkshire Hathaway backing, and a strong balance sheet. While facing similar macroeconomic headwinds as GIS, KHC has already cleared out its "skeletons" (brand value cuts) and offers a cleaner turnaround play in the consumer staples sector. KHC is a vastly preferable value buy compared to GIS for investors wanting exposure to the packaged food sector. Continued weakness in the broader consumer packaged goods sector or failure of the new CEO's turnaround initiatives.
This Reddit post, published March 11, 2026,
features u/Plus_Seesaw2023
discussing GIS, KHC.
2 trade ideas extracted by AI with direction and confidence scoring.