08:47 AM EDT, 06/25/2025 (MT Newswires) -- General Mills ( GIS ) recorded fiscal fourth-quarter sales below market expectations on Wednesday as volume and prices fell, while the Cheerios maker projected earnings in fiscal 2026 to be down by double digits on a yearly basis.

Adjusted earnings dropped to $0.74 per share for the three months through May 25 from $1.01 the year before, but topped the FactSet-polled consensus of $0.71. Sales decreased 3% to $4.56 billion, just shy of the Street's view for $4.59 billion. Sales were also down 3% on an organic basis.

General Mills ( GIS ) sees fiscal 2026 adjusted EPS declining by 10% to 15% in constant currency from the $4.21 delivered in the previous year. Organic sales are set to be down 1% to up 1% versus the 2% decrease in fiscal 2025. Headwinds from divestures, acquisitions and foreign currency are forecast to reduce full-year net sales growth by about 4%, General Mills ( GIS ) said.

Shares of the company fell 3.6% in premarket activity.

The Betty Crocker and Blue Buffalo parent said its "top priority" in fiscal 2026 will be to restore volume-driven organic sales growth. It expects category gains to be below long-term projections, reflecting reduced benefits from pricing and mix amid a persistently "challenging consumer backdrop," according to the company.

General Mills ( GIS ) plans to increase investment in consumer value, products and brand building to boost its categories and market share performance, including a substantial investment to launch Blue Buffalo into the fresh pet food segment later in 2025. The company also expects to achieve $100 million in incremental cost savings from its worldwide restructuring efforts, announced in the fourth quarter, in fiscal 2026.

"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," Chief Executive Jeff Harmening said in a statement.

For the fourth quarter, North America retail sales slid to $2.56 billion from $2.85 billion in the prior-year period, amid lower pound volume and prices. Revenue declined by double digits in the US snacks unit, while decreasing by mid-single-digits for the US morning foods and US meals and baking solutions divisions. Sales were down by double digits in Canada in constant currency.

Pet sales in North America advanced 12% to $675.2 million. Within the segment, the group logged double-digit growth each for wet pet food and pet treats, while dry pet food inclined by mid-single-digits. North American foodservice sales retreated 2% to $579.4 million, while international revenue climbed 11% to $738.9 million.