General Mills has today beaten estimates for second-quarter sales and profit, as more consumers ate at home than dined out, boosting demand for the Pillsbury dough maker's pantry staples and breakfast cereals.
The Cheerios maker also reaffirmed its annual forecasts for a second time.
While US consumer sentiment improved in early December, budget-conscious shoppers still preferred home-made meals over restaurants amid high prices and labour market uncertainties.
General Mills experienced a "volatile operating environment" for the quarter, CEO Jeff Harmening said, while noting "improved momentum" in the first half of the year.
SNAP benefits, which provide food assistance to those with lower income, also lapsed temporarily for the first time during the federal shutdown, further squeezing household budgets.
The company posted sales of $4.86 billion for the quarter ended November 23, compared with analysts' estimates of $4.78 billion, according to data compiled by LSEG.
It reported an adjusted profit of $1.10 per share, beating expectations of $1.03 per share.
The company maintained its annual forecast of a 10% to 15% fall in profit, and organic net sales between a 1% rise or a 1% fall.
General Mills reiterating its annual forecast showed positive signs despite it being under pressure over the last two years in an environment where "pricing had become difficult to take and volume recovery was slower than expected," RBC Capital Markets analyst Nik Modi said.
Packaged foods peer Campbell's Co beat expectations for first-quarter profit last week and maintained its annual sales and profit forecasts.
General Mills, in June, had said it would remove synthetic dyes from its full US retail portfolio by the end of fiscal 2027, as more consumers opt for healthier options and the Trump administration pushes the "Make America Healthy Again" movement.
