General Mills reaffirmed its full-year sales and profit forecast, weeks after lowering expectations, as weak consumer demand and intensifying competition continue to weigh on performance.
The maker of Cheerios said it still expects adjusted profit to decline 16% to 20% for the year, with organic sales down between 1.5% and 2%. The reaffirmation comes despite ongoing pressure on household spending and shifting consumer preferences.
The company pointed to a challenging backdrop marked by inflationary pressure and broader economic uncertainty, including geopolitical tensions linked to the Iran conflict.
These factors have dampened demand for packaged foods, particularly as consumers become more price-sensitive.
At the same time, legacy food brands are facing structural changes in eating habits. Consumers are increasingly gravitating toward healthier and higher-protein options, a trend accelerated by the growing uptake of GLP-1 weight-loss drugs.
CEO Jeff Harmening said the company is responding by expanding its protein-focused offerings, particularly in breakfast categories where competition has intensified.
General Mills expects protein-led products to account for roughly a quarter of annual net sales, reflecting a strategic pivot to align with evolving consumer demand.
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“We started the year expecting that our investments, divestitures, and unfavorable timing comparisons would drive declines in our sales and earnings results through our first three quarters — and that’s what we’ve seen play out,” Harmening said.
He added that the company expects improved organic sales trends and a return to earnings growth in the fourth quarter.
In the third quarter, General Mills reported net sales of $4.44 billion, slightly ahead of analyst expectations. However, adjusted earnings came in at $0.64 per share, missing forecasts of $0.73.
Performance in its largest division, North America retail, was particularly weak, with sales falling sharply during the period.
Shares were down modestly in early trading and have fallen around 17% year to date, reflecting investor concerns about sustained demand softness.
Peer Campbell’s has also recently cut its outlook, underscoring broader pressure across the packaged food sector.
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