General Mills lowers guidance, citing ‘macroeconomic uncertainty’

As anyone who’s ever reached for a nonexistent potato chip at the bottom of the bag would know, you can’t snack forever.

In Q3, General Mills learned a similar lesson.

Sales fell 5% last quarter. In a statement, CEO Jeff Harmening explained that dip was “driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories.”

“We’re focused on improving our sales growth in fiscal 2026 by stepping up our investment in innovation, brand communication, and value for consumers,” he continued.

For the quarter, the cereal giant behind Lucky Charms posted net sales of $4.8 billion, which was below analyst expectations.

The company lowered its full-year guidance, saying it “expects macroeconomic uncertainty to continue to impact consumers in the fourth quarter.” Now, General Mills anticipates organic net salesto be down 1.5% to 2% for the fiscal year, down from its prior forecast.

General Mills’ earnings report isn’t the only sign we’ve gotten lately that consumers are pulling back from snack purchases. Convenience-store sales volume fell 4.3% for the year by the end of February, according to market research company Circana.

“Right now the consumer is looking at a lot of these products and are saying: ‘Wow, I can’t remember when it was this expensive,’” Lori Buss Stillman, VP of research and education at the National Association of Convenience Stores, told the Wall Street Journal, in reference to a snacking pullback.