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The packaged food sector slumped on Wednesday after General Mills (GIS) reported that it saw a slower-than-expected volume recovery in the company’s fiscal second quarter. During the earnings conference call, General Mills (GIS) executives said that the Minnesota-based company continues to expect consumers to eat more at home due to financial pressures. GIS also expects moderating input cost inflation, and increased stability of its supply chain to help boost results.
Morgan Stanley said the mixed quality of the General Mills (GIS) earnings report is likely to keep investors cautious in the near term. The firm kept an Underweight rating on GIS. Elsewhere, Vital Knowledge analyst Adam Crisafulli observed that companies like GIS are facing twin pressures of cooling food inflation alongside soft consumer spending trends.
Notable sector decliners in Wednesday morning trading included Beyond Meat (BYND) -4.38%, Lifeway Foods (LWAY) -3.85%, Hain Celestial (HAIN) -2.55%, Darling Ingredients (DAR) -2.48%, Lamb Weston (LW) -2.40%, TreeHouse Foods (THS) -2.35%, B&G Foods (BGS) -1.99%, Campbell Soup (CPB) -1.90%, and Post Holdings (POST) -1.64%. The Invesco Food & Beverage ETF (NYSEARCA:PBJ) was down 1.05% in comparison to a slight gain for the S&P 500 Index. As far General Mills (GIS), the stock pared its decline to – 2.66% at 10:23 a.m.