General Mills Falls As Third-Quarter Revenue Misses Estimates
Shares in General Mills Inc. fell after the maker of Cheerios and Chex posted third-quarter revenue that fell short of analysts’ estimates, dragged down by declining sales of its yogurt and meals businesses.
Sales were $3.79 billion in the period that ended Feb. 26, Minneapolis-based General Mills said Tuesday. That missed the $3.8 billion average of projections. Profit of 72 cents excluding some items beat estimates by a penny.
North America accounts for two-thirds of the company’s revenue, and General Mills said both the U.S. yogurt and meals-and-baking segments suffered double-digit percentage sales declines in the quarter.
Consumer trends have been moving toward more fresh foods and away from packaged products like cereal.
Shares of General Mills fell as much as 3.8 percent to $58 in premarket trading. They had lost 2.4 percent this year through Monday’s close.
The company also said it expects revenue for the full year to decline about 4 percent. It previously forecast a drop of 3 percent to 4 percent.