General Mills shares fall as weak consumer demand triggers outlook cut

Investing.com -- Shares of General Mills are down around 3.6% in premarket trading on Tuesday after the company cut its full-year fiscal 2026 outlook, citing weak consumer sentiment and a slower-than-expected volume recovery.

In a release ahead of the Consumer Analyst Group of New York Conference, General Mills said Chairman and CEO Jeff Harmening will note that the company has “been hard at work transforming General Mills” under its Accelerate strategy.

He will also state that despite a “volatile operating environment,” the company is focused on executing its “Remarkability playbook,” which he said is strengthening brand competitiveness.

However, General Mills now expects organic net sales to decline 1.5% to 2% in fiscal 2026, compared with its prior forecast of a decline of 1% to an increase of 1%.

Adjusted operating profit and adjusted diluted earnings per share are now projected to fall 16% to 20% in constant currency, versus the previous outlook for a 10% to 15% decline.

The company attributed the downgrade to “weak consumer sentiment, heightened uncertainty, and significant volatility,” which have weighed on category growth and disrupted purchasing patterns.

It said these trends have led to a “slower pace and higher cost of volume recovery than initially expected.”

Still, executives highlighted ongoing investment behind brand remarkability, consumer-centric innovation, and scaled digital capabilities.

The company expects a roughly 25% increase in net sales from new products in fiscal 2026 and continues to forecast free cash flow conversion of at least 95%.

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