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General Mills Pet Sales Up 12%: Is Blue Buffalo the Key Growth Driver?

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Key Takeaways

  • General Mills' North America Pet sales rose 12% in Q4, fueled by volume gains and portfolio moves.
  • Whitebridge acquisition boosted wet food and treats with double-digit sales growth in the quarter.
  • Blue Buffalo to roll out "Love Made Fresh," expanding into dry, wet and fresh pet food formats.

General Mills, Inc. ((GIS - Free Report) ) reported a significant 12% increase in net sales for its North America Pet segment in the fourth quarter of fiscal 2025, leading to questions about the key growth drivers. A closer look reveals that the reported sales growth was a result of a 3-point increase in organic volume and a 9-point contribution from acquisitions and divestitures.

The company's performance was driven by the acquisition of North America’s Whitebridge Pet Brands business in the third quarter of fiscal 2025. This strategic move contributed to the quarter's reported sales, particularly in wet food and treats, which saw a double-digit percentage increase. Dry food saw a more modest mid-single-digit increase.

Looking ahead, General Mills is focused on accelerating pet growth through its expanded portfolio. The company plans to invest in its core Blue Buffalo brand and drive category expansion opportunities. A key initiative remains the national rollout of Blue Buffalo’s fresh pet food line, “Love Made Fresh,” later this year. This portfolio provides a differentiated entry into the U.S. fresh pet food sub-category.

With this launch, Blue Buffalo will become the largest U.S. pet brand offering solutions across dry, wet and fresh formats. Management emphasized that more than 80% of fresh feeding occasions involve a mix with kibble, giving Blue Buffalo a unique chance to deliver “whole bowl” solutions. While multiple factors have supported recent performance, Blue Buffalo’s expansion is expected to be the defining driver of the Pet segment’s growth trajectory.

General Mills’ Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have declined 8% over the past three months, underperforming both the industry and the broader Consumer Staples sector, which declined 2% and 2.4%, respectively. The stock also lagged the S&P 500, which gained 8.5% during the same period.

GIS Stock's Past Three Months Performance

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Is GIS a Value Play Stock?

General Mills currently trades at a forward 12-month P/E ratio of 13.56, which is down from the industry average of 15.92 and notably below the sector average of 17.04. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

GIS P/E Ratio (Forward 12 Months)

Zacks Investment Research
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Stocks to Consider

Post Holdings, Inc. ((POST - Free Report) ) operates as a consumer-packaged goods holding company in the United States and internationally. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 3.1% and 11%, respectively, from the prior-year levels. POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.

The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently sports a Zacks Rank of 1. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.

The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels.

Laird Superfood, Inc. ((LSF - Free Report) ) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank #2 (Buy) at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.

The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.

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