General Mills NYSE:GIS shares rose sharply after the packaged-food company reported quarterly adjusted earnings and revenue that came in above Bloomberg-compiled analyst estimates. The stock jumped as much as 9.9% in New York trading, marking its biggest intraday gain since 2020, while helping reduce a year-to-date decline that had reached 25% through Tuesday's close.
Management said consumers remain under pressure from rising prices and could keep leaning toward discounts, promotions, and more careful shopping habits. Chief Operating Officer Dana McNabb said shoppers are likely to be more deliberate about where and how they spend, while Chief Executive Officer Jeff Harmening said General Mills is done cutting prices but may try to win consumers through product innovation, packaging changes, marketing, and trends tied to higher protein and fiber intake, including premium Cheerios with added protein.
General Mills said earlier price reductions helped support sales volume after losing share to private-label and smaller competitors. Organic sales in its North American retail business were flat for the quarter, which was better than expected, while the company guided for fiscal-year organic sales to range from up 0.5% to down 1.5%. RBC Capital Markets' Nik Modi said the company's guidance looks prudent and achievable, as General Mills also targets $3 billion in cost savings by fiscal 2030.