General Mills stock rises after raising its fiscal 2023 financial guidance

Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss the decline in stock for General Mills.

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JULIE HYMAN: It is time now to look at some of today's market movers. Appropriately enough, I think it's still breakfast time. It still counts as breakfast time. We're going to start with General Mills. The consumer goods manufacturer-- cereal maker, of course-- raising its fiscal 2023 financial guidance as it continues to try to accelerate its strategy to deliver profitable growth. North America retail and pet food remains key contributors to the company's long-term growth ambitions.

The shares up about 3.6% here this morning. And General Mills was presenting at a consumer goods conference-- specifically the Consumer Analyst Group of New York conference. So this forecast is coming out of that conference.

BRAD SMITH: People were wondering, perhaps, what I was writing down on my paper as we came out to this two shot. It was really just Cinnamon Toast Crunch, because this is--

JULIE HYMAN: Just write it--

BRAD SMITH: --of course, that--

JULIE HYMAN: --over and over again.

BRAD SMITH: Sometimes I have to remember, but--

JULIE HYMAN: It's like visioneering. If you--

BRAD SMITH: Precisely.

JULIE HYMAN: --write it down, it will come to you.

BRAD SMITH: Oh my goodness, those cereal flakes are family. At the end of the day, I think what they're signaling here with the organic net sales growth-- approximately 10% was what they're looking for there. Adjusted operating profit growth of 6% to 7%. And free cash flow conversion of about 90% adjusted there. I think it signals some of the strength or some of the customer appetites to continue to lean back into brands that they know, even when they do see some type of economic uncertainty that may impact their household balance sheet.

It continues to be a reversion to the names that you know, like Cinnamon Toast Crunch that I wrote down for the more sugary folks out there like myself. Or perhaps the Cheerios, and the blander of the cereal out there.

JULIE HYMAN: And for the so-called pet parents out there, they own Blue Buffalo, which I didn't necessarily realize. That's one of the brands that we use. And we have the opening bell this morning. And they're talking about a test of a new fresh line of refrigerated Blue Buffalo dog food. We know that the fresh pet food segment has been a fast-growing one. We all saw the Farmer's Dog commercial during the Super Bowl, for example, which is not General Mills.

But seeing that, perhaps, is one of the things that's leading them down that path. So they're talking about emphasizing the fast growth that's happening in the pet food segment, which is interesting here. So they're going to begin testing the brand in other international markets besides China in fiscal 2024 as well. So that's some of the news from General Mills--