General Mills (GIS) is in for a tricky 2025 because it tries to sell its lineup of cereals and snacks.

The Cheerios maker reported earnings on Wednesday that included lower guidance. It expects organic net sales to drop 2% to 1.5% for the yr, in comparison with the previous range of flat to up 1%.

“Coming into this yr, we thought the patron environment would improve because the yr [goes] on, and that hasn’t really been the case,” CEO Jeffrey Harmening said on its earnings call. General Mills stock fell 2% in morning trading and is down 7% yr so far.

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He added that value-seeking behavior has ramped up. If “you take a look at probably the most recent confidence indices, it might indicate that consumer confidence is definitely below where it was three months ago and about where it was in 2008.”

The Conference Board Consumer Confidence Index declined 7 points in February to 98.3, showing “pessimism in regards to the future returned” last month.

Last month, Kraft Heinz (KHC) also posted a cautionary outlook. It expects organic net sales to are available in flat to down 2.5% in comparison with the prior yr.

Kraft Heinz CEO Carlos Abrams-Rivera said on its recent earnings call that buyers are shopping at more stores to get the most effective price and buying less per trip.

Campbell’s (CPB) also expects organic net sales to are available in flat to a 2% decline in 2025. CEO Mick Beekhuizen said the guidance reflects “the slower-than-anticipated recovery of our snacking categories, impacting the outlook for our second half.”

Here’s what General Mills posted in its fiscal 2025 third quarter, in comparison with Bloomberg estimates:

Adjusted earnings per share: $1.00, versus $0.97

Revenue: $4.84 billion, versus $4.97 billion

Organic year-over-year volume growth: -4%, versus -1.61%

• North America Retail: -5%, versus -3.93%

• International: -4%, versus +2.72%

• Pet: -3%, versus +0.17%

• North American Food Service: -1%, versus +2.73%

Organic pricing year-over-year growth: -1%, versus -1.12%

• North America Retail: -1%, versus -0.88%

• International: 0%, versus -3%

• Pet: -1%, versus -2.64%

• North American Food Service: +2%, versus +1.79%

Harmening said in the discharge that lower-than-expected revenue is “driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories.”

Consumers spent less on snack bars, fruit snacks, and salty snacks. The corporate plans to give attention to value, pack sizes, and innovation to retain shoppers.

Its North American food service segment saw volumes decline by 1%. Strong net sales growth for cereal and bread was dragged lower by a decline in Pillsbury and Gold Medal bakery flour. Nonetheless, General Mills did see market share gains in schools, healthcare, and colleges.