By Nicholas G. Miller

General Mills lowered its sales and profit outlook for the fiscal year, as stressed consumers are buying fewer snacks and looking for more promotions.

"Weak consumer sentiment, heightened uncertainty, and significant volatility have weighed on category growth and impacted consumer purchase patterns, resulting in a slower pace and higher cost of volume recovery than initially expected," the maker of Cheerios and Pillsbury said.

Chief Executive Jeff Harmening said at the Consumer Analyst Group of New York conference that inflation, SNAP benefits reductions and geopolitical uncertainty "have led to significant consumer stress, especially for the middle and lower income groups."

That has driven lower-than-expected growth particularly for cereal, snacks and dog food. Harmening said the company is also "seeing financially stressed consumers buying more of their products on promotion," leading to a more costly sales mix.

"We see a heightened focus on value, particularly for middle- and lower-income consumers. Cost of living and housing pressures are reshaping spending patterns, and value is a core expectation that is here to stay," Harmening said.

Shares were down 3.4% to $46.70 in premarket trading.

General Mills now expects organic net sales to be down 1.5% to 2% for the year, compared with its previous forecast of down 1% to up 1%.

The food company also guided for adjusted earnings per share to fall 16% to 20% in constant currency. It had previously guided for a decline of 10% to 15%.

The company said it is prioritizing product innovation, including for new protein-focused offerings, and expects a 25% increase in net sales from new products in 2026. "Anti-obesity drugs will have a lasting influence on the food market, "nudging some consumers toward smaller portions and more nutrient-dense protein and fiber-forward foods," Harmening says.

General Mills has cut prices across two-thirds of its North America segment's portfolio, a decision the company said is now leading to higher sales volume. The price cuts allowed the company to "get below key price cliff and narrow gaps to the competition," said Dana McNabb, president of the North America retail segment. McNabb said that 90% of the business has had pricing elasticity at or ahead of expectations.

Write to Nicholas G. Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

February 17, 2026 09:15 ET (14:15 GMT)

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