Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

General Mills lifts annual forecast on upbeat demand for at-home cooking

Stock Markets Sep 21, 2022 10:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Packages of Cheerios, a brand owned by General Mills, are seen in a store in Manhattan, New York, U.S., November 12, 2021. REUTERS/Andrew Kelly
 
GIS
+0.23%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
KHC
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
K
+0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Mehr Bedi and Granth Vanaik

(Reuters) -General Mills Inc raised its full-year forecast after beating quarterly profit estimates on Wednesday, as higher product prices did not quell demand for the Cheerios maker's snacks and cereals.

Packaged food makers have been steadily raising prices on everything from cereals to beef jerky as they look to insulate their margins from increased costs tied to labor, ingredients and transportation without drawing consumer ire.

With inflation nearing forty-year highs, the consumer preference for cooking more at home, which developed during the pandemic, has been hard to shake off as shoppers try to stretch their dollars amid soaring energy and food prices.

"Significant inflation and reduced consumer spending power has led to an increase in at-home eating and other value-seeking behaviors," Chief Executive Officer Jeff Harmening said, attributing the demand for home cooking for the lower-than-expected impact of pricing on sales volume in the quarter.

Third Bridge analyst Shoggi Ezeizat noted General Mills (NYSE:GIS) looks resilient against inflation pressures, adding "the group's wide range of products and spectrum of price points should provide sufficient options for its customers to trade down but not out of the General Mills range."

The Lucky Charms owner said it expects consumers to become more price sensitive over the next three quarters.

Shares of the Minnesota-based packaged food maker rose 3.7% as the positive results echo sentiments from some of its peers, including Kellogg (NYSE:K), J.M. Smucker and Kraft Heinz (NASDAQ:KHC) Co, which have also raised annual forecasts in recent months.

The company now expects organic net sales to rise between 6% and 7% in fiscal 2023. It had earlier forecast sales to grow 4% to 5%.

The Betty Crocker cake mix maker also expects fiscal 2023 adjusted profit per share to rise 2% to 5% on constant currency basis, compared with prior forecast range of flat to 3%.

General Mills lifts annual forecast on upbeat demand for at-home cooking
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email