General Mills, Inc. GIS has agreed to sell its Haagen-Dazs shop business in Mainland China to an investor group that includes Ningji, a fast-growing premium tea chain operator. The transaction grants the buyers exclusive rights to use the Haagen-Dazs brand for ice cream shops and gifting operations in Mainland China, while General Mills will continue to operate its retail and foodservice Haagen-Dazs businesses in the market.
The deal reflects the company's ongoing efforts to reshape its portfolio and concentrate resources on businesses that offer stronger opportunities for profitable growth. Since fiscal 2018, General Mills has actively refined its brand portfolio through acquisitions and divestitures, seeking to strengthen its long-term growth profile.
GIS’ Portfolio Optimization Amid Near-Term Headwinds
The announcement comes as General Mills works through a challenging operating environment. In the third quarter of fiscal 2026, organic sales fell 3%, while profits were pressured by increased investments in brand support, portfolio changes and higher costs.
To improve competitiveness, the company has been investing in product innovation, advertising, pricing initiatives and distribution enhancements. These efforts appear to be generating early results. Recent trends showed improvement in household penetration, baseline sales and market-share performance across several key categories, indicating that the company's investments are beginning to strengthen consumer engagement.
Image Source: Zacks Investment Research
GIS Retains Exposure to a Key International Brand
The transaction does not diminish General Mills' presence in the Haagen-Dazs business. The company's recent results indicate that Haagen-Dazs remains an important contributor to its International segment. During the third quarter, the brand delivered mid-single-digit retail sales growth in the International division, supported by product innovation and enhancements to core offerings.
By transferring the shop business to a local operator with a large consumer-facing network while retaining broader exposure to the Haagen-Dazs brand, General Mills is sharpening its focus on areas where it sees stronger opportunities for profitable growth. The move aligns with the company's broader objective of improving efficiency, strengthening its portfolio and positioning the business for better organic growth as it moves toward fiscal 2027.
The Zacks Rank #4 (Sell) stock has tumbled 24.1% over the past three months compared with the industry’s decline of 11.9%.
Better-Ranked Stocks to Consider
The Chef's Warehouse, Inc. CHEF, a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Flowers Foods, Inc. FLO is a leading U.S. bakery company that manufactures and markets packaged bakery foods, including bread, buns, snack cakes and tortillas, under brands such as Nature’s Own, Wonder and Dave’s Killer Bread. FLO carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings indicates year-over-year declines of 1.3% and 20.9%, though the consensus mark for the next financial-year sales and EPS implies year-over-year growth of 0.6% and 5.7%, respectively. FLO delivered a trailing four-quarter earnings surprise of 11.1%, on average.
Tyson Foods, Inc. TSN operates as a leading protein company, producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for a jump of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Mills, Inc. (GIS): Free Stock Analysis Report
Tyson Foods, Inc. (TSN): Free Stock Analysis Report
Flowers Foods, Inc. (FLO): Free Stock Analysis Report
The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).