Bernstein downgraded General Mills to Underperform from Market Perform, citing a 43% surge in WTI and 35% jump in Brent crude that is driving up freight, agriculture and packaging costs. The firm also warned of persistent headwinds as consumer demand favors GLP-1 therapies like Wegovy and Ozempic over packaged foods.
Bernstein lowered General Mills to Underperform from Market Perform, signaling diminished confidence in the company’s ability to sustain growth amid rising costs and shifting consumer preferences.
A surge of over 43% in WTI and 35% in Brent crude prices since February has elevated freight, agricultural and packaging expenses, squeezing margins across General Mills’ product lines.
Expanding popularity of GLP-1 weight-loss therapies such as Wegovy and Ozempic is reshaping consumer demand toward healthier options, reducing appetite for traditional center-of-store packaged foods.
Bernstein warned of persistent headwinds, stating it sees no near-term relief for General Mills as elevated inflation and evolving dietary trends continue to challenge profitability.
