General Mills leads food stock slide on consumer weakness fears

Packaged food stocks fell after General Mills lowered its sales and profit outlook, saying the slump is deeper than previously expected. The Cheerios maker's shares dropped 8%, and other food companies moved lower: Campbell's fell 7%, ConAgra nearly 6%, and Kraft‑Heinz roughly 5%.

McCormick & Co. and J.M. Smucker's also saw declines. General Mills CEO Jeff Harmening said a weakening consumer is weighing on results and pointed to a "heightened focus on value" among shoppers, especially those with low and mid incomes — a nod to the K-shaped economy.

"Cost of living and housing pressures are reshaping spending patterns and value is core expectation that is here to stay," he said during the company's presentation at an annual consumer analyst conference. Harmening called the backdrop "challenging" amid "historically low consumer sentiment," and flagged inflation, SNAP cuts, and geopolitical uncertainty as contributors to customer financial stress.

general mills, cheerios, packaged food, food stocks, consumer weakness, jeff harmening, k-shaped economy, inflation, snap cuts, kraft heinz