General Mills rises after earnings beat, $3 b cost-cut plan

Shares of General Mills rose sharply on Wednesday after the packaged food company reported quarterly earnings that exceeded expectations and announced a major new cost-cutting plan. The stock gained roughly 6.8% in late-morning trading, significantly outperforming other major consumer staples companies.

For its fiscal fourth quarter ended May 31, 2026, General Mills reported adjusted earnings per share of $0.95, surpassing the consensus analyst estimate of $0.80. Net sales for the quarter rose 1% to $4.61 billion, roughly in line with expectations. On an adjusted basis, operating profit increased 13% in constant currency.

However, the company reported a significant net loss of $2.01 billion for the quarter, driven by large non-cash charges. These included a $1.8 billion impairment for goodwill and brand intangible assets and a $1 billion valuation loss tied to the pending sale of its Brazil business. For the full fiscal year 2026, net sales declined 5% to $18.4 billion, with organic sales down 2%.

A key driver of the quarterly profit beat was the timing of trade expenses and the benefit of an extra week in the fiscal calendar, factors the company indicated are not expected to...