General Mills Cuts 2026 Sales Forecast Amid Consumer Slowdown
Event summary
- General Mills revised its fiscal 2026 outlook, now expecting organic net sales to decline 1.5-2% (previously -1% to +1%) due to weak consumer sentiment.
- Adjusted operating profit and EPS are now projected to fall 16-20% in constant currency (previously -10% to -15%).
- CEO Jeff Harmening highlighted progress in reshaping 30% of the portfolio and investing in digital capabilities under the Accelerate strategy.
- The company aims for a 25% increase in net sales from new products in fiscal 2026, focusing on bold flavors and better-for-you benefits.
- General Mills has returned $14B to shareholders since fiscal 2019 through dividends and share repurchases.
The big picture
General Mills' strategic pivot under its Accelerate strategy faces headwinds from a challenging consumer environment. The company's focus on remarkability and digital capabilities aims to restore growth, but execution will be tested by volatile purchase patterns. With $19B in fiscal 2025 net sales, the scale of its transformation efforts will determine its competitive positioning in the CPG sector.
What we're watching
- Consumer Recovery Pace
- How quickly General Mills can restore volume growth amid persistent weak consumer sentiment.
- Innovation Payoff
- Whether the 25% expected sales increase from new products materializes as planned.
- Cost Efficiency
- The effectiveness of digital and supply chain initiatives in offsetting margin pressures.
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