Americans are splurging on food for their cats and dogs — but not snacks for them and their kids. That’s not great news for General Mills.
Shares of General Mills (GIS), the owner of Cheerios, Lucky Charms and Yoplait, fell 7% in early trading Wednesday after the company reported its latest quarterly results. That made General Mills the worst performing stock in the S&P 500.
Sales missed forecasts, despite soaring demand for the company’s Blue Buffalo pet food.
The weaker-than-expected revenue was largely because of a 2% drop in sales in its North American retail unit, the division that includes Annie’s branded cheddar bunnies, Chex, Fruit Snacks and the Fiber One and Nature Valley brands of bars.
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