Food Stocks Fall After General Mills Warns of Weak Consumer Sentiment

Shares of major food companies decline as inflation and economic pressures impact consumer spending patterns

Feb. 18, 2026 at 5:55pm

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Shares of major consumer food companies, including Mondelez, Kraft Heinz, McCormick, J.M Smucker, Conagra Brands, and Campbell's, fell after General Mills cut its fiscal-year outlook and warned about weak consumer sentiment weighing on its sales volume. General Mills CEO Jeff Harmening cited inflation, SNAP benefits reductions, and geopolitical uncertainty as leading to significant consumer stress, especially for middle- and lower-income groups.

Why it matters

The decline in food stocks highlights the broader economic pressures facing consumers, particularly those in middle- and lower-income brackets, as they grapple with rising costs of living and housing. This bifurcation in consumer spending patterns could have significant implications for the food and consumer packaged goods industry.

The details

General Mills reported that it is "seeing financially stressed consumers buying more of their products on promotion," leading to a more costly sales mix. Conagra executive Bob Nolan also noted a bifurcation between upper-income and lower-income consumers, with the lower-income cohort continuing to seek value and stretch their dollars, while upper-income shoppers are able to buy in higher quantities.

  • The news was reported on February 17, 2026.

The players

General Mills

A major American food company that produces and markets branded consumer foods.

Jeff Harmening

The Chief Executive Officer of General Mills.

Bob Nolan

An executive at Conagra Brands, another major American food company.

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What they’re saying

“Inflation, SNAP benefits reductions and geopolitical uncertainty "have led to significant consumer stress, especially for the middle- and lower-income groups,”

— Jeff Harmening, CEO, General Mills

“We see a heightened focus on value, particularly for middle- and lower-income consumers. Cost of living and housing pressures are reshaping spending patterns, and value is a core expectation that is here to stay,”

— Jeff Harmening, CEO, General Mills

“The lower-income cohort continues to seek value and looks to stretch their dollars, while upper-income shoppers are able to buy in higher quantities,”

— Bob Nolan, Executive, Conagra Brands

What’s next

General Mills is expected to provide more details on its fiscal-year outlook and consumer trends during its upcoming earnings report.

The takeaway

The decline in food stocks underscores the growing economic pressures facing consumers, particularly those in middle- and lower-income brackets, as they grapple with rising costs of living and housing. This bifurcation in consumer spending patterns could have significant implications for the food and consumer packaged goods industry, leading companies to focus more on value and affordability to cater to the needs of financially stressed consumers.