General Mills (GIS, Financial) saw its stock price decline as the company reported lower-than-expected sales for the fourth quarter of fiscal year 2025 and projected a greater-than-anticipated drop in profits for the new fiscal year. The maker of popular brands such as Lucky Charms, Betty Crocker, and Pillsbury revealed fourth-quarter sales of $4.56 billion, a 3% year-over-year decrease, slightly below the Visible Alpha consensus estimate of $4.58 billion. However, adjusted earnings per share (EPS) was $0.74, surpassing analysts' expectations of $0.71.
The company experienced a 12% increase in North American pet food sales and an 11% rise in international sales. However, North American retail sales fell by 10%, and the food service segment saw a 2% decline. Previously, the company had indicated that macroeconomic uncertainties would continue to affect consumer behavior.
For fiscal year 2026, General Mills expects adjusted EPS to decrease by 10% to 15% from fiscal year 2025's $4.21, below the Visible Alpha forecast of $3.90. Organic net sales are projected to range from a 1% decline to a 1% increase, while analysts had predicted a 0.1% growth. CEO Jeff Harmening emphasized that the company's primary goal for 2026 is to restore volume-driven organic sales growth.
