General Mills invests $54 million to expand innovation center

MINNEAPOLIS - General Mills (NYSE:GIS), the $26.3 billion consumer staples giant currently trading near its 52-week low, announced on Tuesday a $54 million investment to expand its James Ford Bell Technical Center in Golden Valley, Minnesota, adding a new 35,000-square-foot, two-story pilot plant wing to its research and development facilities. According to InvestingPro analysis, the company appears undervalued at current levels.

The expansion will increase the company’s pilot plant space by more than 20 percent, providing additional facilities for innovation, technology and quality development. The project represents the largest investment made in the technical center since its original construction in 1960. With a strong dividend yield of 4.95% and a 55-year history of maintaining dividends, General Mills continues to reward long-term investors while investing in growth. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

"This expansion is a critical step in ensuring General Mills remains at the forefront of innovation," said Lanette Shaffer Werner, chief innovation, technology and quality officer at General Mills, in a press release statement.

The company held a groundbreaking ceremony on Tuesday to mark the beginning of construction. The expanded facility is scheduled to open in fall 2027.

According to the company, the technical center currently houses approximately 1,000 employees. The expansion aims to provide flexible spaces to accelerate research across General Mills’ business units and support both core growth and new business initiatives.

The James Ford Bell Technical Center serves as the company’s key hub for developing new products across its portfolio of brands, which includes Cheerios, Nature Valley, Blue Buffalo, and Häagen-Dazs.

General Mills reported net sales of $19 billion for fiscal year 2025, with an additional $1 billion in non-consolidated joint venture net sales. The company is scheduled to report its next earnings on September 17, 2025, which will be closely watched by investors given its attractive P/E ratio of 11.91.

In other recent news, General Mills has reported several notable developments. The company has completed the sale of its U.S. yogurt business to Lactalis, including brands like Yoplait and Go-Gurt, along with facilities in Tennessee and Michigan. This move comes amid a series of analyst updates following General Mills’ fourth-quarter fiscal 2025 earnings report and its fiscal year 2026 outlook. Stifel reiterated a Buy rating on the stock with a $56 price target, while Piper Sandler maintained an Overweight rating with a $60 target, citing innovation as a key growth strategy. In contrast, JPMorgan downgraded the stock to Underweight, lowering its price target to $45 due to concerns about the company’s earnings outlook and guidance track record. UBS also adjusted its price target to $49, maintaining a Sell rating after the company’s fiscal 2026 guidance fell short of Wall Street expectations. These recent developments reflect a mixed sentiment among analysts regarding General Mills’ future performance.

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