General Mills Inc (NYSE:GIS) stock rose 0.81% (As on December 18, 11:20:40 AM UTC-4, Source: Google Finance) after the company reported better-than-expected quarterly sales and earnings, driven by steady demand for at-home food products as consumers continued to limit restaurant spending amid elevated prices and economic uncertainty. Organic net sales were down 1 percent, driven by unfavorable organic net price realization and mix. Adjusted gross margin was down 150 basis points to 34.8 percent of net sales, driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the yogurt divestitures. Adjusted operating profit of $848 million was down 20 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 290 basis points to 17.4 percent. Net earnings attributable to General Mills of $413 million were down 48 percent.

Moreover, second-quarter net sales for General Mills’ North America Retail segment were down 13 percent to $2.9 billion, including a 10-point headwind from the North American Yogurt divestitures. Net sales were down double digits for the Big G Cereal & Canada operating unit, down mid-single digits for U.S. Snacks, and down low-single digits for U.S. Meals & Baking Solutions. Second-quarter net sales for the North America Pet segment were up 11 percent to $660 million, including a 10-point benefit from the North American Whitebridge Pet Brands acquisition. Net sales were up double digits for both cat food and pet treats, and were down low-single digits for dog food. Second-quarter net sales for the North America Foodservice segment were down 8 percent to $582 million, including a 7-point headwind from the yogurt divestitures.

GIS in the second quarter of FY26 has reported the adjusted earnings per share of $1.10, beating the analysts’ estimates for the adjusted earnings per share of $1.02. The company had reported the adjusted revenue decline of 7 percent to $4.86 billion in the second quarter of FY26, beating the analysts’ estimates for revenue of $4.78 billion.

General Mills reaffirmed its full-year fiscal 2026 outlook for the second time this year. The company continues to expect organic net sales to range between a 1% decline and 1% growth, while adjusted operating profit and adjusted diluted EPS are forecast to fall 10% to 15% in constant currency. Management said ongoing investments in innovation, brand building, and consumer value are expected to weigh on near-term profitability but position the company for more sustainable growth over the longer term.