Overview
- Adjusted earnings were $0.86 per share for the quarter ended Nov. 30, missing the $0.88 LSEG consensus, while net sales of $1.85 billion matched expectations.
- Fiscal 2026 adjusted profit is forecast at $3.05 to $3.13 per share, a 2% to 5% increase that falls short of the $3.22 analysts expected, according to LSEG data.
- Shares fell about 5% in premarket trading after the results and outlook were released, reflecting concern over slower profit growth.
- Management cited pressured U.S. consumer spending and heightened competition for lower-priced alternatives, alongside higher input costs and tariffs.
- Executives said margins were squeezed by broader commodity inflation and tariff expenses that exceeded earlier assumptions, while coverage flagged health-focused eating trends and GLP-1 use as demand risks for packaged foods.