10 Best Chocolate Stocks to Buy Now

7. General Mills, Inc. (NYSE:GIS)

Number of Hedge Fund Holders: 29

General Mills, Inc. (NYSE: GIS) is a leading producer and marketer of branded consumer foods. Its product portfolio includes snacks, cereals, frozen desserts, pet food, and yogurt. Among its brands is Betty Crocker, which is known for its wide range of baking products, including chocolate cake mixes, frostings, and easy-to-make chocolate dessert solutions, making it a go-to choice for chocolate lovers.

In Q4 2024, General Mills, Inc. (NYSE:GIS) reported a 6% decline in net sales to $4.7 billion, driven by unfavorable pricing, product mix, and lower volume, with organic net sales also dropping by 6%. The North American retail segment, which includes ready-to-eat cereals, refrigerated yogurt, snack bars, and chocolate-flavored baking products, experienced a 7% decline. Despite cost savings and supply chain improvements, net earnings fell by 9% to $558 million, primarily due to higher interest expenses and tax costs. Nevertheless, the company reported an EPS of $1.01 per share, surpassing analysts’ expectations of $0.993 per share.

Furthermore, General Mills, Inc. (NYSE:GIS) generated $3.3 billion in operating cash flow for fiscal 2024, up from $2.8 billion the previous year. Moreover, the company invested $774 million in capital (an increase from $690 million a year ago), and repurchased $2.0 billion in shares in fiscal 2024, with a 96% free cash flow conversion rate. The company has consistently paid dividends for the past 125 years, with the Q4 dividend payment at $0.60 per share, a 2% increase from the previous quarter.

In April 2024, General Mills opened a new warehouse in Belvidere to consolidate smaller facilities, increase distribution capacity, and support the Pleasant Street plant. Consequently, the stock rose 5.83% in the past month and 13.68% YTD.

Despite weaker net earnings, General Mills, Inc. (NYSE:GIS) is optimistic about volume improvements in fiscal 2025, focusing on product innovation and enhanced consumer experiences to drive organic sales growth.

As of Q2 2024, 29 hedge funds, holding a combined investment of $357 million, are bullish on the stock, according to Insider Monkey’s database.