General Mills Lowers Profit Outlook Amid Shifting Consumer Buying Trends

General Mills, the maker of Cheerios, has recently revised its annual sales and profit forecasts downward. The company attributes this adjustment to weak consumer sentiment and a noticeable shift towards healthier and lower-cost food options, which are significantly impacting the demand for packaged products.

In a statement released ahead of its presentation at the Consumer Analyst Group of New York (CAGNY) conference, General Mills noted, “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 evolving consumer landscape, influenced by a growing preference for healthier options and the increased use of GLP-1 weight-loss drugs, is further pressuring the demand for packaged food.

Packages of Cheerios, a brand owned by General Mills, are seen in a store in Manhattan. (Andrew Kelly/Reuters)

WENDY’S TO CLOSE HUNDREDS OF RESTAURANTS AS COMPANY LOOKS TO FOCUS ON VALUE TO BOOST SALES

During the CAGNY presentation, General Mills CEO Jeff Harmening highlighted that the increasing competition for protein options is also a significant factor affecting their business. The company has its own line of protein cereals to address this trend.

Harmening stated, “We expect GLP-1 and other anti-obesity medications to have a lasting influence in the food and nutrition landscape, nudging some consumers toward smaller portions and more nutrient-dense protein and fiber-forward foods.”

He further acknowledged that lower- and middle-income consumers are increasingly prioritizing value as economic pressures continue to mount. “Cost of living and housing pressures are reshaping spending patterns and value is a core expectation that is here to stay,” he remarked.

Cheerios for sale at a grocery store on Dec. 22, 2025 in Durham, North Carolina. (Al Drago/Getty Images)

Earlier this month, PepsiCo responded to consumer backlash by cutting prices on core brands like Lay’s and Doritos by up to 15%. Meanwhile, Conagra, the maker of Slim Jim meat snacks, has maintained its annual sales and profit targets despite reporting a muted second quarter.

General Mills, which had previously left its annual outlook unchanged in December, is now facing challenges as Americans reduce discretionary spending and turn to more affordable pantry staples.

A woman shops for Cheerios at a Price Chopper supermarket in South Burlington, Vermont, Nov. 6, 2017. (Robert Nickelsberg/Getty Images)

General Mills now anticipates that annual sales will decline by 1.5% to 2%, a significant shift from its previous forecast of a decline of 1% to an increase of 1%.

‘NOBULL MENTALITY’ TAKES NEXT STEP WITH NUTRITION LINE AS OWNER MIKE REPOLE VOWS TO HELP PEOPLE WIN AT LIFE

The company has also revised its forecast for annual adjusted operating profit and adjusted earnings per share, now expecting a decline of 16% to 20% in constant currency, compared to its earlier outlook of a 10% to 15% decline.

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Reuters contributed to this report.

General Mills, the maker of Cheerios, has recently revised its annual sales and profit forecasts downward. The company attributes this adjustment to weak consumer sentiment and a noticeable shift towards healthier and lower-cost food options, which are significantly impacting the demand for packaged products.

In a statement released ahead of its presentation at the Consumer Analyst Group of New York (CAGNY) conference, General Mills noted, “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 evolving consumer landscape, influenced by a growing preference for healthier options and the increased use of GLP-1 weight-loss drugs, is further pressuring the demand for packaged food.

Packages of Cheerios, a brand owned by General Mills, are seen in a store in Manhattan. (Andrew Kelly/Reuters)

WENDY’S TO CLOSE HUNDREDS OF RESTAURANTS AS COMPANY LOOKS TO FOCUS ON VALUE TO BOOST SALES

During the CAGNY presentation, General Mills CEO Jeff Harmening highlighted that the increasing competition for protein options is also a significant factor affecting their business. The company has its own line of protein cereals to address this trend.

Harmening stated, “We expect GLP-1 and other anti-obesity medications to have a lasting influence in the food and nutrition landscape, nudging some consumers toward smaller portions and more nutrient-dense protein and fiber-forward foods.”

He further acknowledged that lower- and middle-income consumers are increasingly prioritizing value as economic pressures continue to mount. “Cost of living and housing pressures are reshaping spending patterns and value is a core expectation that is here to stay,” he remarked.

Cheerios for sale at a grocery store on Dec. 22, 2025 in Durham, North Carolina. (Al Drago/Getty Images)

Earlier this month, PepsiCo responded to consumer backlash by cutting prices on core brands like Lay’s and Doritos by up to 15%. Meanwhile, Conagra, the maker of Slim Jim meat snacks, has maintained its annual sales and profit targets despite reporting a muted second quarter.

General Mills, which had previously left its annual outlook unchanged in December, is now facing challenges as Americans reduce discretionary spending and turn to more affordable pantry staples.

A woman shops for Cheerios at a Price Chopper supermarket in South Burlington, Vermont, Nov. 6, 2017. (Robert Nickelsberg/Getty Images)

General Mills now anticipates that annual sales will decline by 1.5% to 2%, a significant shift from its previous forecast of a decline of 1% to an increase of 1%.

‘NOBULL MENTALITY’ TAKES NEXT STEP WITH NUTRITION LINE AS OWNER MIKE REPOLE VOWS TO HELP PEOPLE WIN AT LIFE

The company has also revised its forecast for annual adjusted operating profit and adjusted earnings per share, now expecting a decline of 16% to 20% in constant currency, compared to its earlier outlook of a 10% to 15% decline.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Reuters contributed to this report.