Earnings GuidanceThe company lowered guidance for FY25: Organic sales are now expected to come in at the low end of the flat to up 1% range below consensus at 0.4%.
Investment ConcernsThe high acquisition cost, reflected in a mid-20s EBITDA multiple, indicates that growth in the pet sector is expensive, which could be a concern for some investors.
Market ReactionGeneral Mills negative stock reaction post 2Q25 earnings reflects incremental investment spend the company is making, primarily in NA Retail.