General Mills Cuts FY26 Sales Guidance to Down 1.5%–2%, Plans $165M Restructuring
General Mills trims FY26 organic net sales guidance to a 1.5%–2% decline and cuts adjusted operating profit outlook to down 16%–20%, while incurring $160–165 million in restructuring costs. It forecasts a 25% lift in FY26 net sales from new products focused on bold flavors, familiar favorites and better-for-you benefits.
1. Fiscal 2026 Guidance Revision
General Mills lowered its organic net sales growth forecast for fiscal 2026 to a 1.5%–2% decline, down from a previous range of flat to 1% growth. The company also trimmed its adjusted operating profit and diluted EPS outlook to a 16%–20% drop on a constant‐currency basis, with net sales headwinds from currency shifts, recent acquisitions and a 53rd week.
2. Restructuring and Integration Costs
Restructuring and integration expenses are projected at $160–165 million for FY26, driven by planned streamlining initiatives across manufacturing and supply chain operations. These charges reflect accelerated costs tied to consolidation of production facilities and brand portfolio realignment.
3. Innovation‐Driven Growth Outlook
General Mills anticipates a 25% increase in net sales from new product launches in fiscal 2026, focusing on three consumer trends: bold flavors, familiar favorites and improved nutritional profiles such as higher protein and fiber. The company aims to offset volume declines with innovation around legacy brands like Cheerios and Häagen-Dazs.
4. Analyst Outlook and Valuation
Consensus holds a Hold rating on General Mills with an average price target of $53.56 and a trailing P/E multiple of 10.4x. Earnings estimates for the next update on March 18, 2026 stand at $0.82 per share on $4.55 billion in revenue, down from prior projections.