Feb. 17 at 8:55 PM
General Mills shares tumbled nearly 9% after the company cut its fiscal 2026 outlook, citing weaker-than-expected consumer demand. The stock’s decline dragged down peers including Campbell's, Lamb Weston, and Kraft Heinz.
General Mills now expects fiscal 2026 sales to fall 1.5% to 2%, marking a potential third consecutive year of declines, versus its prior forecast of flat to slightly positive growth. Adjusted EPS is projected to drop 16% to 20%, a steeper decline than previously guided.
The company said inflation-weary consumers are trading down to cheaper options and shifting preferences are pressuring legacy brands. CEO Jeff Harmening acknowledged that the five-year “Accelerate” turnaround strategy is taking longer and costing more than expected. Since its launch in February 2021, the stock has fallen 21%, while the Consumer Staples Select Sector SPDR Fund has gained 34%.
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