Cereal Giant General Mills, Inc. ( GIS ) shares dipped in premarket trading Wednesday after the company posted mixed fourth-quarter results and issued a cautious full-year outlook.

The global packaged food company registered quarterly adjusted earnings per share of 74 cents, beating the analyst consensus estimate of 71 cents. Quarterly sales of $4.56 billion (down 3% year over year) missed the Street view of $4.59 billion.

Organic net sales fell 3%, as expected, including a 2-point hit from unfavorable trade expense timing.

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Quarterly net sales for General Mills’ North America Retail segment were down 10% to $2.6 billion, North America Pet segment were up 12% to $675 million, North America Food service segment were down 2% to $579 million, and International segment were up 11% to $739 million.

Adjusted gross margin was down 220 basis points to 32.7% of net sales, driven primarily by higher input costs and unfavorable net price realization and mix.

Unfavorable trade expense timing was a 150-basis point headwind to adjusted gross margin in the quarter.

Adjusted operating profit of $622 million was down 22% in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 330 basis points to 13.7%. 

“Our number one goal in fiscal 2026 is to restore volume-driven organic sales growth,” said General Mills ( GIS ) Chairman and Chief Executive Officer Jeff Harmening.

“To do that, we’ll invest further in consumer value, product news, innovation, and brand building, guided by our remarkable experience framework and highlighted by Blue Buffalo’s national launch into fresh pet food coming later in calendar 2025.”

The company exited the quarter with cash and equivalents worth $363.9 million and inventories worth $1.91 billion.

General Mills ( GIS ) launched a multi-year global transformation initiative under its Accelerate strategy to streamline operations and enhance agility through new tools, technologies, and operating models.

The initiative, along with other efficiency efforts, is expected to deliver $100 million in incremental cost savings in FY2026.

The company declared a quarterly dividend of 61 cents per share, payable August 1, 2025, to shareholders of record July 10, 2025. This represents a 2% increase from the previous quarterly rate.

General Mills ( GIS ) expects its fiscal 2026 adjusted diluted EPS to decline 10%-15% in constant currency from the fiscal year 2025 base of $4.21. The company projects organic net sales to range between a 1% decline and a 1% increase.

“With a clear framework centered on remarkability and positive early returns from our fourth quarter investments, I’m confident our fiscal 2026 plans will put us on a path back to driving long-term growth in line with our shareholder return model,” the CEO added.

Price Action: GIS shares are trading lower by 4.51% to $51.00 premarket at last check Wednesday.

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