General Mills (GIS) anticipates macroeconomic headwinds to continue through next quarter | AlphaStreet

Shares of General Mills, Inc. (NYSE: GIS) have been down over 2% on Wednesday after the corporate delivered blended outcomes for the third quarter of 2025 and lowered its outlook for the fiscal yr. Gross sales and income for the quarter declined versus the prior-year interval, and the corporate expects the challenges seen in Q3 to persist for the rest of the yr.

Combined outcomes

General Mills’ internet gross sales decreased 5% year-over-year to $4.84 billion in Q3 2025, lacking estimates of $4.96 billion. Natural gross sales additionally dropped 5%, primarily due to retailer stock headwinds, a slowdown in snacking classes, and slower demand in US away-from-home channels. GAAP earnings per share was down 4% to $1.12. Adjusted EPS of $1.00 decreased 15% YoY however surpassed projections of $0.97.  

Enterprise efficiency

General Mills noticed gross sales decline or stay flat throughout most of its segments throughout the third quarter, except for North America Foodservice, which rose 1%. The very best decline of seven% was within the North America Retail phase, the place positive aspects in Pillsbury refrigerated dough and Totino’s sizzling snacks have been offset by a slowdown in key US snacking classes. Gross sales declined throughout US Morning Meals, US Snacks, and US Meals & Baking Options.

Web gross sales within the Pet phase remained flat, with mid-single-digit will increase in moist pet meals and pet treats, and a mid-single-digit decline in dry pet meals. The Foodservice phase noticed a slowdown in away-from-home gross sales however benefited from positive aspects in Okay-12 faculties, healthcare, and faculty and college channels. Gross sales within the Worldwide phase fell 4%, with declines in China and Brazil, partly offset by development in Europe & Australia.

Lowered outlook

General Mills expects its gross sales traits in This fall 2025 to look comparable to Q3, excluding the affect of retailer stock and different timing components. The corporate expects macroeconomic uncertainty to persist within the fourth quarter. It additionally plans to make sure business investments in This fall.

Based mostly on these assumptions, GIS lowered its steering for fiscal yr 2025. The corporate now expects natural gross sales to be down 1.5-2.0% in contrast to the earlier expectation of flat to up 1%. Adjusted EPS is now anticipated to be down 7-8% in fixed forex.