Overview
- General Mills now expects organic net sales to decline 1.5% to 2% in fiscal 2026, with adjusted operating profit and adjusted diluted EPS down 16% to 20% in constant currency.
- Shares fell roughly 7% to 8% after the update, with peers including Campbell's, Conagra, Kraft Heinz, Mondelez, McCormick, and J.M. Smucker also sliding.
- Weak sentiment, persistent cost‑of‑living pressures, SNAP benefit reductions, and promotion‑driven buying have restrained demand, with cereal, snacks, and dog food underperforming.
- CFO Kofi Bruce said aggregate category growth is currently a little under 1%, below the company’s long‑term 2% to 3% expectation.
- Management is prioritizing value tactics and innovation in protein‑ and fiber‑forward, weight‑management products, using AI to speed development, while maintaining a free‑cash‑flow conversion target of at least 95%.