General Mills shares slide on slashed 2026 guidance

Core Viewpoint - General Mills Inc has revised its 2026 outlook downward due to weaker consumer demand and increased market uncertainty, leading to a significant drop in its share price by over 7% [1]. Financial Outlook - The company now expects organic net sales to decline by 1.5% to 2% for the full year, a change from the previous forecast of a 1% decline to 1% growth [1]. - Adjusted operating profit and adjusted diluted earnings per share are projected to fall by 16% to 20% in constant currency, which is a steeper decline than the earlier guidance of 10% to 15% [2]. Cash Flow and Market Conditions - Free cash flow conversion is still anticipated to reach at least 95% of adjusted after-tax earnings [3]. - The revision in outlook is attributed to weaker consumer sentiment, ongoing market volatility, and higher costs associated with volume recovery, which have negatively impacted category growth and purchasing patterns [3]. Strategic Initiatives - At the Consumer Analyst Group of New York Conference, General Mills executives presented the updated guidance and discussed the company's Accelerate strategy aimed at driving long-term sustainable growth [4]. - The company has reshaped nearly a third of its portfolio, enhanced digital capabilities, and improved cost efficiency as part of its strategic initiatives [4]. - CEO Jeff Harmening emphasized the focus on executing the Remarkability playbook to strengthen the competitiveness of the company's global brands amid a volatile operating environment [5].