Published: Wednesday, March 19, 2025 · 5:42 PM | Updated: Wednesday, March 19, 2025 · 5:42 PM
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General Mills (GIS, Financial) just dropped its Q3 earnings, and the numbers are a mixed bag. Revenue slid 5% year over year to $4.84 billion, missing Wall Street’s $4.96 billion estimate, as retailers slashed inventories and demand for salty snacks and pet food took a hit. On the flip side, adjusted EPS came in at $1.00, slightly ahead of the $0.96 forecast but still down 15% from last year. Profitability struggled under rising costs and higher expenses, and despite a minor boost in gross margin, the company’s overall performance points to deeper challenges in the packaged food space.
Now for the real kicker—General Mills slashed its full-year outlook, predicting organic sales to fall 1.5% to 2%, with adjusted operating profit set to drop between 7% and 8%. That’s a much steeper cut than analysts expected, signaling that competition from private-label brands and cautious consumer spending aren’t easing up anytime soon. Tariff concerns add another layer of uncertainty, as new trade policies could further squeeze margins. With shoppers continuing to trade down, the big question is whether General Mills can win them back—or if those who’ve switched to cheaper alternatives will stay put.
Management is betting on aggressive cost-cutting, rolling out a $100 million savings plan for fiscal 2026. But the market isn’t convinced. Shares slid after the report, as investors weigh whether General Mills can defend its pricing power in a tougher landscape. With inflationary pressures lingering and supply chain dynamics still shifting, the company’s next moves will be crucial. Can it pull off a turnaround, or is this just the start of a tougher battle for dominance in the consumer food space? Investors are watching closely.
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