Newscasts - General Mills cuts annual outlook as shoppers seek cheaper options

Kraft Heinz Co

17/02/2026 18:35

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Source: 'Reuters - Business videos'

Description: General Mills cut its annual core sales and profit forecasts on Tuesday (February 17) as the Cheerios cereal maker contends with a volatile economic backdrop and evolving consumer tastes. Alex Cohen has more.

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Video Transcript:

General Mills shares fell more than 8% Tuesday morning after the cereal maker cut its annual core sales and profit forecasts. The producer of Cheerios and other brands is contending with a volatile economic backdrop and evolving consumer tastes. Shares have fallen nearly 19% in the last 12 months. General Mills and other packaged food companies are under pressure as lower income shoppers hit hardest by persistent inflation trade down to value brands and private label goods. At the same time, the industry is contending with evolving dietary preferences and a growing push toward healthier foods, accelerated by the broader adoption of GLP‑1 weight-loss drugs. CEO Jeff Harmening said at a conference on Tuesday that "cost of living and housing pressures are reshaping spending patterns and value is a core expectation that is here to stay." Earlier this month, PepsiCo cut some prices following a consumer backlash against earlier price hikes, while Kraft Heinz last week paused plans to split the company and forecast weak annual earnings after missing quarterly results estimates on tepid demand. General Mills now expects annual sales to be down 1.5% to 2% compared with its previous range of down 1% to an increase of 1%. One analyst tells Reuters the forecast now seems more realistic.