General Mills Bets on Promotions and New Products to Win Back Shoppers

General Mills executives say they are optimistic about the year ahead, even after the company swung to a steep quarterly loss. The maker of Cheerios and Annie’s Mac and Cheese plans to lure back cost-conscious shoppers through sharper promotions, selective price cuts, and a wave of new products.

According to a Wall Street Journal report, General Mills shares rose nearly 6% after the company reported fiscal fourth-quarter results, despite posting a loss of $2.01 billion for the quarter ending in May, down from a $294 million profit a year earlier.

Why the Company Posted a Loss

Most of the quarterly loss stemmed from accounting items rather than day-to-day operations, including roughly $1.8 billion in charges tied to higher discount rates and a separate $1 billion hit from the planned sale of its Brazil operations. Excluding those one-time charges, adjusted earnings reached 95 cents a share, topping analyst expectations of 80 cents, while revenue rose 1% to $4.61 billion.

A Cautious Consumer Outlook

Despite the stronger adjusted numbers, leadership isn’t expecting a quick rebound in spending habits. Chief Operating Officer Dana McNabb said the company expects consumers to remain pressured in the new fiscal year, continuing to chase deals and buy items primarily when they’re discounted.

Looking forward, General Mills plans to prioritize protein and fiber in its new product lineup, while also investing further in its pet food brands, where sales have been climbing even as its core retail business softens. The company is additionally working to cut $3 billion in costs by fiscal 2030 to offset inflation and boost efficiency. CEO Jeff Harmening struck a confident tone, telling the Journal he believes the company exited the year on stronger footing and expects fiscal 2027 to mark an improvement.