General Mills Cuts Sales Outlook as Consumer Sentiment Weakens

General Mills shares tumbled 8% after the packaged food giant slashed its full-year sales and earnings forecast. The Cheerios Maker now expects organic net sales to decline 1.5%-2% this year, reversing previous guidance of potential 1% growth. Adjusted EPS is projected to drop 16%-20%, worse than the earlier 10%-15% decline estimate.

The downward revision reflects mounting pressure on consumer staples companies. Persistent inflation, reduced SNAP benefits, and geopolitical uncertainty are forcing budget-conscious shoppers toward discount options. "Weak consumer sentiment has resulted in a slower pace and higher cost of volume recovery than expected," the company stated.

The selloff extended to rival food stocks, signaling broader sector challenges. As traditional markets wobble, investors may increasingly view cryptocurrency as an inflation-resistant alternative. bitcoin and other digital assets could benefit from this rotation out of consumer discretionary stocks.