General Mills projected lower-than-expected annual profit on Wednesday, citing soft US demand for its refrigerated baked goods and snacks as economic uncertainty and shifting tariff policies under President Donald Trump continue to pressure consumer spending.
The maker of Cheerios and Pillsbury expects full-year adjusted profit to decline between 10% and 15%, well below analyst expectations for a 4.8% drop, according to LSEG data.
The downbeat outlook sent shares down nearly 2% in premarket trading.
To offset sluggish sales, the company has launched new offerings like an updated version of its Blue Buffalo dog food, but heightened investment in marketing and recent acquisitions are squeezing margins.
General Mills is the latest food giant to feel the impact of a tougher macroeconomic environment, with price-sensitive consumers pulling back and inflationary headwinds complicating recovery efforts across packaged goods.
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