General Mills beat quarterly sales estimates on Wednesday, as more consumers ate at home than dined out, boosting demand for the Pillsbury dough maker’s pantry staples and breakfast cereals.
While U.S. consumer sentiment improved in early December, budget-conscious shoppers still preferred home-made meals over restaurants amid high prices and labor market uncertainties.
SNAP benefits, which provide food assistance to those with lower income, also lapsed temporarily for the first time ever during the federal shutdown, further squeezing household budgets.
The company posted second-quarter sales of US$4.86 billion, compared with analysts’ estimates of $4.78 billion, according to data compiled by LSEG.
Shares of the Cheerios maker were up two per cent in premarket trading.
The company maintained its annual sales and profit forecast for a second time this year.
(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
