• by Sarah Mahoney , September 18, 2025

General Mills posted another quarter of declining revenue, with sales falling 7% to $4.5 billion in the first quarter. But net earnings topped expectations at $1.2 billion, and the company revealed ongoing progress as it continues to adjust product portfolios and marketing strategies, all aimed at wooing back consumers.

The same drivers of people’s behavior shifts are at play as before, said CEO Jeff Harmening, in remarks prepared for investors. “We continue to manage through an evolving operating environment in fiscal 2026 with cautious consumer behavior connected to economic uncertainty, global conflicts, and changing food policy regulations. We see consumers seeking value and prioritizing their spending on key benefits like protein, bold flavors, and feelings of nostalgia from brands they love.”

The company is also betting on more love for furry friends. “We expect pet parents to continue to look for more elevated and humanized pet offerings while maintaining a focus on value,” Harmening added.

This quarter’s declines add to a long string of softening results, leading many observers to be wary of any company’s supermarket expectations. Deutsche Bank’s Steve Powers continues to rate General Mills as a hold, for example, pointing out in a recent report that the entire universe of household staples “aren’t so stapely.” 

“We remain cautious, given a challenging demand and operating backdrop,” he writes, noting that the company’s investments have yet to prove their impact.

And the company’s high hopes for consumers upping their spending on pets, even as they cut back on the family grocery budget, also present some risk. The recent launch of Love Made Fresh, a fresh pet food product, is expected to be below break-even this fiscal year.

So far, General Mills has established 1,000 coolers for the new fresh product, which will increase to 5,000 by the end of November. By comparison, rival Freshpet has some 30,000 coolers at retail.

Others are more upbeat and concede that while it may take time, the cyclical nature of the sector will return to growth soon. This week’s results “largely fit” in General Mills’ plan to make fiscal 2026 a year of investment in price adjustments as it looks to reignite growth, writes Kristoffer Inton, an analyst who follows the company for Morningstar.

“This appears to be having success, with the firm reported it is holding or gaining pound share in eight of its top 10 categories,” he notes. And while some investors view General Mills’ woes as “structural and permanent,” he believes they are “cyclical due to years of rapid inflation." So he thinks "management's actions in pricing and innovation will restore growth.”