General Mills Kornkasser
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Stocks in General Mills stumbled on Wednesday after the Cheerios maker's quarterly earnings were weaker than analyst estimates, while fewer Americans eat their food.
The company's stock, which has a market value of $ 29.6 billion, fell by 8% in morning trading.
Net sales for General Mills North American retail segment, which accounts for more than half of the company's revenue, fell 2% during the fourth quarter last May 26. It is partly attributed to the decline of a decline in its US snack business, which includes its popular Chex Mix and Nature Valley granola bars.
The company said that US retail for its meals and baking, yogurt and grain segments remained unchanged from a year ago.
Minneapolis-based food giant has attempted to adapt to changing consumer tastes, as sales growth has slowed.
Revenues rose 7% in the quarter to NOK 4.1
The company made top Wall Street estimates of earnings. General Mills reported an adjusted earnings of 83 cents per share, beating analysts' expectations of 77 cents per share.
General Mills also launched its 2020 fiscal statement on Wednesday. The company expects organic net sales to increase 1% to 2% and adjusted full-year earnings per share will jump 3% to 5% from $ 3.22 per share it achieved in fiscal 2019.
"We will look to improve our performance again in Fiscal Policy 2020, and we have plans to increase our organic sales growth while maintaining our strong margins and cash discipline, "said CEO Jeff Harmening in a statement.