Q2 2026 General Mills Inc Earnings Call - Q&A

December 17, 2025

Speaker #1: Hello, and welcome to the GENERAL MILLS INC. second quarter fiscal year 2026 earnings call. All lines have been placed on mute to prevent any background noise.

Operator: Hello, and welcome to the General Mills Inc. second quarter fiscal year 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session, and to ask a question, please press star one on your telephone keypad. I would now like to turn the conference over to Jeff Siemon, Vice President, Investor Relations and Corporate Finance. You may begin.

Speaker #1: After the speaker's remarks, there will be a question-and-answer session. To ask a question, please press star one on your telephone keypad.

Speaker #1: I would now like to turn the conference over to Jeff Siemon, Vice President, Investor Relations and Corporate Finance. You may proceed.

Speaker #1: Begin. Thank you, Sarah, and hello to

Jeff Siemon: Thank you, Sarah, and hello to everyone. Thanks for joining us today for our Q&A session on our second quarter fiscal 2026 results. I hope everyone had time to review our press release, listen to our prepared remarks, and view our presentation materials, which we made available this morning on our Investor Relations website. Please note that in our Q&A session, we may make forward-looking statements that are based on management's current views and assumptions. Please refer to this morning's press release for factors that could impact forward-looking statements and for reconciliations of non-GAAP information, which may be discussed on today's call. I'm here today with Jeff Harmening, our Chairman and CEO, Kofi Bruce, our CFO, and Dana McNabb, Group President of North America Retail and North America Pet. Now I'm going to turn it over to Jeff for some opening remarks.

Speaker #2: Everyone, thanks for joining us today for our Q&A session on our second quarter fiscal '26 results. I hope everyone had time to review our press release, listen to our prepared remarks, and view our presentation materials that were made available this morning on our investor relations website.

Speaker #2: Please note forward-looking statements that are based on management's current views, and that in our Q&A session, we may make assumptions. Please refer to this morning's press release for factors that could impact forward-looking statements, and for reconciliations of non-GAAP information, which may be discussed on today's call.

Speaker #2: I'm here today with Jeff Harmening, our Chairman and CEO; Kofi Bruce, our CFO; and Dana McNabb, Group President of North America Retail and North America Pet.

Speaker #2: Now I'm going to turn it over to Jeff for some opening remarks.

Speaker #2: remarks. Thanks,

Jeff Harmening: Thanks, Jeff, and good morning, everybody. You know, when we started this year, our primary goal was to increase organic sales, and to do that in conjunction with continuing to outperform on holistic margin management, and our transformation initiatives. Those are all reflected in our three priorities for the year. As you look at our Q2 results, I'm pleased to say that we're really executing well against all of those, and we continue to see improvement in organic sales and continue to do that very efficiently through our efforts and our transformation efforts. You know, in particular, I look at North America Retail, and, you know, we said we would improve our North America Retail volumes, you know, through the Remarkability framework, and that's exactly what we've done. Part of that is pricing.

Speaker #3: Jeff, and good morning, everybody. The, you know, when we started this year, you know, our primary goal was to increase organic sales, and, and to do that in conjunction with continuing management and, and our transformation to outperform on holistic margin initiatives.

Speaker #3: And those are all reflected in our three priorities for the year. And as you look at our Q2 results, I'm pleased to say that we're really executing well against all of those, and we continue to see improvement in organic sales and continue to do that very efficiently through our efforts and our transformation efforts.

Speaker #3: And, you know, in particular, I look at North America Retail, and, you know, we look at Retail volumes through the remarkability framework, and that's exactly what we've done.

Speaker #3: And, and part of that is price adjustments on base pricing, and to get said we would improve our North America under price cliffs, done in pricing, that we started talking to you about a year ago has worked as well or better and, 90-plus percent of what we've pricing. than what we had thought.

Jeff Harmening: We set strategic-based price adjustments on base pricing and to get under price cliffs. 90+% of what we've done in pricing that we started talking to you about a year ago has worked as well or better than what we had thought. So we're pleased with that. But importantly, the remarkability framework doesn't just stop with pricing actions. Our new product innovation is better. We expect it to be up about 25% this year, and we've got a good lineup in the second half. Our product news is really good. Our events have worked harder for us, and our media ROIs are up. So as I think about our North America retail business, it's not really an accident that we're growing pound share in eight of our top 10 categories so far this year.

We set strategic-based price adjustments on base pricing and to get under price cliffs. 90+% of what we've done in pricing that we started talking to you about a year ago has worked as well or better than what we had thought. So we're pleased with that. But importantly, the remarkability framework doesn't just stop with pricing actions. Our new product innovation is better. We expect it to be up about 25% this year, and we've got a good lineup in the second half. Our product news is really good. Our events have worked harder for us, and our media ROIs are up. So as I think about our North America retail business, it's not really an accident that we're growing pound share in eight of our top 10 categories so far this year.

Speaker #3: But importantly, the Remarkability framework doesn't just stop with pricing actions. And, you know, our new product innovation is better. We expect it to be up about 25% this year, and we've got a good lineup in the second half.

Jeff Harmening: I'm really pleased with the way North America has improved its momentum this year, in particular how we've seen improved momentum in the second quarter. You know, on North America Pet, we said we had to do a couple of things. We need to improve our core business, at the same time incorporate Love Made Fresh. I know there's a lot of emphasis on Love Made Fresh, and rightly so, but I'm pleased with our base business performance. As I look at our Life Protection Formula, we've back to share growth on that. Our cat business is growing mid-single digits. We're up in pound share on our treats business. We have some more work to do on Wilderness, but otherwise, you know, our Pet core business has gained a little momentum too, and we're pleased with that.

I'm really pleased with the way North America has improved its momentum this year, in particular how we've seen improved momentum in the second quarter. You know, on North America Pet, we said we had to do a couple of things. We need to improve our core business, at the same time incorporate Love Made Fresh. I know there's a lot of emphasis on Love Made Fresh, and rightly so, but I'm pleased with our base business performance. As I look at our Life Protection Formula, we've back to share growth on that. Our cat business is growing mid-single digits. We're up in pound share on our treats business. We have some more work to do on Wilderness, but otherwise, you know, our Pet core business has gained a little momentum too, and we're pleased with that.

Speaker #3: There's a lot of emphasis on 'love-made fresh,' and rightly so. But I'm—our product protection formula, we've backed to share growth on that. Our CAC business is growing. I'm pleased with our base business performance as I mid-single digits.

Speaker #3: there's a lot of, emphasis on love-made fresh, and rightly so, but I'm, Our product protection formula. We've backed to share growth on that. Our CAC business is growing I'm pleased with our base business performance as I look at, as I look at our live we're up in pound share on our treats business.

Speaker #3: We have some more work to do on Wilderness, but otherwise, you know, our pet core business has gained a little momentum too, and we're pleased with Love-Made Fresh. I'm just exceptionally pleased with that.

Jeff Harmening: And so as we look at Love Made Fresh, I'm just exceptionally pleased with the way we've started on Love Made Fresh. And we're executing very well. We said we'd be in about 5,000 coolers by the year end. I heard yesterday morning that we're in 4,658, so we're well on our way to that 5,000, and we'll get there by the end of January. And our Love Made Fresh launch has reached about 5% market share in our earliest first wave customers, and so we're pleased with that. We prioritize having plenty of inventory across our business on Love Made Fresh because we know that trial is so important for our business. And even if that trial costs a little bit more because we've got too much inventory in one place or another, it's well worth it to make sure that consumers can try our product.

And so as we look at Love Made Fresh, I'm just exceptionally pleased with the way we've started on Love Made Fresh. And we're executing very well. We said we'd be in about 5,000 coolers by the year end. I heard yesterday morning that we're in 4,658, so we're well on our way to that 5,000, and we'll get there by the end of January. And our Love Made Fresh launch has reached about 5% market share in our earliest first wave customers, and so we're pleased with that. We prioritize having plenty of inventory across our business on Love Made Fresh because we know that trial is so important for our business. And even if that trial costs a little bit more because we've got too much inventory in one place or another, it's well worth it to make sure that consumers can try our product.

Speaker #3: Fresh. And we're executing very well. We said we'd be in about 5,000 coolers by year-end. I was at 4,658, so we're well on our way to that 5,000, and we'll get there by the end of January. I heard yesterday morning that we're on track.

Speaker #3: love-made fresh launch has reached about 5% market share. and our, our earliest first wave customers. And so we're pleased with that. We priority, we prioritize having plenty of inventory across our And so as we look at, at And, our business in love-made fresh because we know that trial is so important.

Speaker #3: For our business, and even if that trial costs a little bit more because we've got too much inventory in one place or another, it's well worth it to make sure that consumers can try our product.

Speaker #3: And when they try it, they like it. 4.8 out of 5-star ratings on our products. We know that is the case, and so we're really pleased to have started.

Jeff Harmening: When they try it, they like it. 4.8 out of 5-star ratings on our products. We know that is the case. So we're really pleased with the way we've started. We'll put on additional customers and distribution in Q3, as well as launch a new format of the stand-up resealable pouch. So pleased with Blue Buffalo. And then, you know, as we talk about we're tracking another 5% this year, so pleased with that, as well as our transformation efforts. So as we look to the second half, the job to do really is to keep some momentum on the top line, and we plan to do that, as well as then turn the corner on profitability.

When they try it, they like it. 4.8 out of 5-star ratings on our products. We know that is the case. So we're really pleased with the way we've started. We'll put on additional customers and distribution in Q3, as well as launch a new format of the stand-up resealable pouch. So pleased with Blue Buffalo. And then, you know, as we talk about we're tracking another 5% this year, so pleased with that, as well as our transformation efforts. So as we look to the second half, the job to do really is to keep some momentum on the top line, and we plan to do that, as well as then turn the corner on profitability.

Speaker #3: We'll put on additional customers and distribution in the third quarter, as well as launch a new four-count format of the stand-up resealable pouch.

Speaker #3: And so, pleased with Blue, with the way we've, we've Buffalo. And then, you know, when we, as we talk about, we're tracking another 5% this year, so pleased with that as well as our transformation efforts.

Speaker #3: And so, as we look to the second half, the job to do really is to keep the momentum on the top line, and we plan to do that.

Speaker #3: And as well as then turn the corner on profitability. And as we look ahead, you know, we expect top line improvement in the second half, and then profit growth in the fourth, timing, and the 53rd week.

Jeff Harmening: And as we look ahead, you know, we expect top-line improvement in the second half and then profit growth in the fourth quarter, thanks in part to favorable trade timing and the 53rd Week. So with that, open it up to questions that you all have.

And as we look ahead, you know, we expect top-line improvement in the second half and then profit growth in the fourth quarter, thanks in part to favorable trade timing and the 53rd Week. So with that, open it up to questions that you all have.

Speaker #3: So with that, I'll open it up to questions. That, that you all quarter, thanks in part to favorable trade.

Speaker #3: have.

Jeff Siemon: Great, Sarah. So let's go ahead, and you can start the Q&A. Thank you.

Speaker #2: Go ahead, and you can start the, the...

Speaker #2: Q&A. Thank you. Thank

Speaker #4: You. Again, it is Star One to ask a question. If you'd like to withdraw your question, simply press Star One again. Your first question comes from Peter Galbo with Bank of America.

Operator: Thank you. Again, it is star one to ask a question. If you'd like to withdraw your question, simply press star one again. Your first question comes from Peter Galbo with Bank of America. Your line is open.

Speaker #4: Your line is

Speaker #4: open.

Speaker #5: Hey, guys. Good morning. thank

Peter Galbo: Hey, guys. Good morning. Thank you for taking the questions. Jeff, I just wanted to pick up on maybe some of your commentary just now in terms of the sustainability of the volume growth in North America retail. I think there was mention of a bit of maybe some shipment timing benefit in the quarter, but just want to get a sense as we start to look at the comps and looking at the back half of the year, how you're thinking about maybe the sustainability of that positive volume trajectory in North America retail.

Speaker #5: Thank you for taking the questions. Jeff, I just wanted to pick up on maybe some of your commentary just now, in terms of the sustainability of the volume growth in North America Retail. I think there was mention of a bit of, maybe some shipment timing benefit in the quarter.

Speaker #5: But just want to get a sense, as we start to look at the comps and look into the back half of the year, how you're thinking about maybe the sustainability of that positive volume trajectory in North America Retail.

Speaker #3: I've got Dana here—Dana McNabb here next to me—so I'll have her talk about North America Retail specifically.

Jeff Harmening: I've got Dana here, Dana McNabb here next to me, so I'll have her talk about North America retail specifically.

Speaker #6: All right. Good morning, Pete. We're really encouraged by the progress that we've made in North America. As Jeff said, eight of our ten categories are growing pound share.

Dana McNabb: All right. Good morning, Pete. We're really encouraged by the progress that we've made in North America. As Jeff said, eight of our 10 categories are growing pound share. Our pounds grew, but as you mentioned, we did have a little bit of shipment timing benefit. Our Nielsen pounds are about flat, and so we do expect that to unwind a little bit in the back half. So as we look to the second half of this year, we expect to continue to drive category improvement and competitiveness, which is really, I think, all we'll mention about back half to avoid giving any forward statements.

Speaker #6: Our pounds grew, but as you mentioned, we did have a little bit of shipment timing benefit. Our Nielsen pounds are about flat, and so we do expect that to unwind a little bit in the back half.

Speaker #6: So, as we look to the second half of this year, we expect to continue to drive category improvement and competitiveness, which is really, I think, all we'll mention about the back half to avoid giving any forward statements.

Speaker #5: Okay. No, helpful. Th-thanks for that. And Jeff, I, I think the discussion around, price cliff, you know, management and, and solving some of the price gaps, has grown even louder in, in, you know, the past week with, with one of your largest peers also price reductions.

Peter Galbo: Okay. No, helpful. Thanks for that. And Jeff, I think the discussion around price cliffs, you know, management and solving some of the price gaps has grown even louder in, you know, the past week with one of your largest peers also announcing some pretty dramatic, you know, price reductions. Just curious kind of how you're viewing, you know, the competitive environment, what you're expecting from some of your other peers. Just are we in a phase of the cycle where, you know, others are going to have to follow? Kind of what's been a first mover advantage for General Mills? Thanks very much.

Speaker #5: Just curious kinda how your, your viewing, you know, the competitive environment, what you're expecting from some of your other peers, just are we in a, a, a phase of the cycle where, announcing, some, some pretty dramatic, you know, you know, others are gonna have to follow?

Speaker #5: Kind of, what's been a first-mover advantage for General Mills? Thanks very much.

Jeff Harmening: Yeah, I think it's a good question. You know, what I would say is that we haven't really seen an increase thus far in the competitive levels within our category, which is to say that levels of discounting are about the same as they were a year ago, broadly speaking, across our categories. We haven't really seen that. I think when you think about what we have done, there are a couple of things I would say. You know, going first is fine, but doing it well is even better. And our team has executed the pricing really well. If you think about, you know, being in 26 different categories across lots of different customers, it takes a lot to get the pricing reflected in a manner that is consistent with what you're looking for. And so we've done that really well.

Speaker #3: I think we haven't, we haven't really. So we've got great product news coming in the second half. We shared some of those in the slides.

Speaker #3: the, it's a, it's a good question. You know, I, what I would say is that we haven't, we haven't really seen an competitive levels within our category, which is to increase thus far in the say that, levels of discounting are about the same as across our categories.

Speaker #3: They were, a year ago, broadly speaking, seen that. I think when you—when you think about what we have done, there are a couple of things I would say, you know, going, going—yeah.

Jeff Harmening: But also, you know, I mentioned the innovation, the marketing improvements, and the product news because those are really important too. The reason for the pricing is to make sure that the other elements of your marketing mix work as well as you want. As we look ahead, we feel great about the other elements of our marketing mix. We've got great product news coming in the second half. We shared some of those in the slides, and our marketing keeps getting better and better. As we think about, so as we think about it, we're not too concerned about the competitive environment based on what we've seen thus far. Importantly, you know, on our pricing, we're not getting down to the levels of, you know, private label or something like that.

But also, you know, I mentioned the innovation, the marketing improvements, and the product news because those are really important too. The reason for the pricing is to make sure that the other elements of your marketing mix work as well as you want. As we look ahead, we feel great about the other elements of our marketing mix. We've got great product news coming in the second half. We shared some of those in the slides, and our marketing keeps getting better and better. As we think about, so as we think about it, we're not too concerned about the competitive environment based on what we've seen thus far. Importantly, you know, on our pricing, we're not getting down to the levels of, you know, private label or something like that.

Speaker #3: And, and our marketing keeps getting better and better. And as we think about, so as we, as we think about it, we're not, we're not too concerned about the competitive environment.

Speaker #3: Based on what we've seen thus far, and importantly, you know, on our pricing, we're not getting down to the levels of pri— you know, private label or something like that.

Speaker #3: We're just kind of getting under price cliffs and kind of getting within a certain range. And, if you look at our price mix in North America Retail, it's down to maybe about 3% or so, so far this year.

Jeff Harmening: We're just kind of getting under Price Cliffs and kind of getting within a certain range. And if you look at our price mix in North America Retail, it's down to maybe about 3% or so far this year. That's after 30-plus percent increases over prior years where we had a lot of inflation. So anyway, we feel good about where we're competitively positioned, and I feel really good about the way that we are executing.

We're just kind of getting under Price Cliffs and kind of getting within a certain range. And if you look at our price mix in North America Retail, it's down to maybe about 3% or so far this year. That's after 30-plus percent increases over prior years where we had a lot of inflation. So anyway, we feel good about where we're competitively positioned, and I feel really good about the way that we are executing.

Speaker #3: That's after 30-plus percent increases over prior years, where we had a lot of inflation. So, anyway, we feel good about where we're competitively positioned.

Speaker #3: And feel really good about the way that we are.

Speaker #3: executing.

Speaker #5: Thanks

Peter Galbo: Thanks very much.

Speaker #5: very much.

Speaker #4: The next question comes from Andrew Lazar with Barclays. Your line is open.

Operator: The next question comes from Andrew Lazar with Barclays. Your line is open.

Speaker #5: good morning, everybody.

Andrew Lazar: Good morning, everybody.

Speaker #7: Morning. Good morning.

Max Gumpert: Morning.

Jeff Harmening: Morning.

Speaker #5: Good morning. Jeff, in your current quarter, so fiscal 3Q, General Mills, right, starts to lap some of the pricing moves from last year. And I think you've talked about how you anticipate the sort of the gap between volume share which has been improving and value share, right, to begin to narrow.

Andrew Lazar: Morning. Jeff, in your current quarter, so fiscal Q3, General Mills, right, starts to lap some of the pricing moves from last year. I think you've talked about how you anticipate the sort of the gap between volume share, which has been improving, and value share, right, to begin to narrow, which is ultimately necessary to get to overall organic sales growth. So I guess my question is, like, what specifically should our expectations be in sort of fiscal Q3 and Q4 as to sort of how quickly, you know, this gap can narrow as we all kind of assess the scanner data moving forward? And, like, where would you hope to be on this score as General Mills enters fiscal 2027? It sounds like you expect sustained year-over-year volume growth in the back half.

Speaker #5: Which is ultimately necessary to get to overall organic sales growth. So my guess, my question is, like, what specifically should our expectations be in sort of fiscal Q3 and Q4 as to sort of how quickly, you know, this gap can narrow as we all kind of assess the scanner data moving forward?

Speaker #5: And, like, where would you hope to be on this score as General Mills enters fiscal '27? Sounds like you expect sustained year-over-year volume growth in the back half.

Speaker #5: How, how do we think about sort of price mix and, you know, particularly in light of your comments regarding, you know, the cost of volume rising a bit?

Andrew Lazar: How do we think about sort of price mix and, you know, particularly in light of your comments regarding, you know, the cost of volume rising a bit? Just trying to get a sense of how to set expectations for how quickly that gap can narrow and, you know, when the expectation is to get to sort of absolute organic sales growth, if you will. Thanks so much.

How do we think about sort of price mix and, you know, particularly in light of your comments regarding, you know, the cost of volume rising a bit? Just trying to get a sense of how to set expectations for how quickly that gap can narrow and, you know, when the expectation is to get to sort of absolute organic sales growth, if you will. Thanks so much.

Speaker #5: Just trying to get a sense of how to set expectations for how quickly that gap can narrow and, you know, when the expectation is to get to sort of absolute organic sales growth, if you will.

Speaker #5: Thanks so

Speaker #3: Yeah, much. Andrew, I appreciate the question. You know, I was—I was terrified saying—I mean, it’s a pretty volatile environment, so I’m going to refrain from getting too specific, only because there are a lot of things that can come our way.

Jeff Harmening: Yeah, Andrew, I appreciate the question. You know, I started by saying, I mean, it's a pretty volatile environment, so I'm going to refrain from getting too specific only because there are a lot of things that can come our way. I didn't really see the government shutdown coming in the second quarter, or SNAP being reduced. So, I mean, there are a lot of things that can come our way. Having said that, you know, we do expect improvement in the second half, and it will be based on price mix as we start to lap some of our initial pricing from last year, although it won't fully be reflected until fiscal 2027. So I think it's important to keep that in mind as well. The other thing is just based on timing.

Speaker #3: I didn't really see the government shutdown coming in the second quarter, or SNAP being reduced. So, I mean, there are a lot of things that can come our way.

Speaker #3: Having said that, you know, we do expect improvement in the second half, and it will be based on price mix as we start to lap some of our initial—some of our initial price actions, which won't be fully reflected until fiscal well.

Speaker #3: Having said that, you know, we do expect improvement in the second half, and it will be based on price mix as we start to lap some of our initial—some of our initial price fully be reflected until fiscal pricing from last year. The other thing is just based 27.

Speaker #3: On timing, I talked at we, I talked a little bit in my opening remarks about positive mix in the fourth quarter due to some trade phasing timing.

Jeff Harmening: I talked a little bit in my opening remarks about positive mix in the fourth quarter due to some trade phasing timing, and that'll be positive in the fourth quarter. That'll be a little bit negative in the third quarter. So the trade-off between those two quarters, and so what you see in Nielsen may or may not be exactly reflected as what we see in the P&L by quarter, but it'll all work itself out by the end of fiscal 2026. As you look at, you know, entering the next fiscal year, I think, you know, we're going to see momentum on our core sales business. How high that momentum will be, we will see.

I talked a little bit in my opening remarks about positive mix in the fourth quarter due to some trade phasing timing, and that'll be positive in the fourth quarter. That'll be a little bit negative in the third quarter. So the trade-off between those two quarters, and so what you see in Nielsen may or may not be exactly reflected as what we see in the P&L by quarter, but it'll all work itself out by the end of fiscal 2026. As you look at, you know, entering the next fiscal year, I think, you know, we're going to see momentum on our core sales business. How high that momentum will be, we will see.

Speaker #3: And that'll be positive in the third quarter, the fourth quarter. That'll be a little bit negative in those two quarters, and so what you see in Nielsen may or may not be exactly reflected as what we see in the P&L by quarter, but it'll all work itself out by the end of fiscal '26.

Speaker #3: As you, as you look at, you know, entering the next fiscal year, I, I think, you know, we're, we're, we're gonna see momentum on our, on our core sales business.

Speaker #3: see. but, we feel good about where our pricing is and, and where the How high remarkability is kind of across our business. Not only North America Retail, which is getting a lot of attention and rightfully so, but we grew in pet this, this quarter.

Jeff Harmening: But we feel good about where our pricing is and where the Remarkability is kind of across our business, not only North America Retail, which is getting a lot of attention, rightfully so, but we grew in PET this quarter in food service. But for index pricing, we would have grown 3% in our North America food service business. We grew in international. And so the gains we are seeing across the board, and I don't think it's coincidental that we're using the Remarkability frameworks across all of our businesses.

But we feel good about where our pricing is and where the Remarkability is kind of across our business, not only North America Retail, which is getting a lot of attention, rightfully so, but we grew in PET this quarter in food service. But for index pricing, we would have grown 3% in our North America food service business. We grew in international. And so the gains we are seeing across the board, and I don't think it's coincidental that we're using the Remarkability frameworks across all of our businesses.

Speaker #3: And food service, but for index pricing, we would've grown 3% in our North America food service business. We grew in international. And so, the gains we are seeing are across the board, and I don't think it's coincidental that we're using the remarkability frameworks across all of our—

Speaker #3: businesses. Thank you for that.

Andrew Lazar: Thank you for that. I know you're seeing some momentum, obviously, in progress in core PET. I'm just curious what you're seeing in just the overall, let's call it, like, dog feeding category. I know you've been probably hoping for that broader category to be a little bit stronger than it has been, but what are you seeing there in terms of consumer behavior? Thanks so much.

Speaker #5: I know, I know you're seeing some momentum, obviously, and progress in core—core pet. I'm just curious what you're seeing in, in just the overall, let's call it, like, dog feeding category.

Speaker #5: Any, any, I know you've been probably hoping for that broader category to be a little bit stronger than it has been. But what are you seeing there in terms of consumer behavior?

Speaker #5: Thanks so much.

Dana McNabb: Hi, Andrew. This is Dana. I'll jump in and answer that question. If we look at the pet category, what we'd say is the category was up about 1% in Q2. Pounds were down modestly. That was relatively in line with Q1 and with fiscal 2025. It continues to be cat feeding that is growing the fastest, and the treat segment has also gotten back to growth. What we're seeing in dog feeding is that it continues to lag a little bit on both pounds and dollars. And there's really three reasons for that. The first is that we do estimate that there's still a shift to unmeasured channels. That's about 50 basis points. We're seeing a shift towards smaller dogs, and that's weighing down pounds a bit as dogs that are smaller consume fewer pounds.

Speaker #8: This is Dana. I'll jump in and answer that. Hi, Andrew. If we look at the pet category, what we'd say is the category was up about 1% in Q2.

Speaker #8: Pounds were down modestly. That was relatively in line with Q1 and with fiscal '25. It continues to be cat feeding that is growing the fastest.

Speaker #8: And the treat segment has also gotten back to growth. What we're seeing in dog feeding is that it continues to lag a little bit on both pounds and dollars.

Speaker #8: And there's really three reasons for that. The first is that we do estimate that there's still a shift to unmeasured, measured channels. That's about 50 basis points.

Speaker #8: We're seeing a shift towards smaller dogs, and that's weighing down pounds a bit, as dogs that are smaller consume fewer pounds. And then also, we are seeing a little bit of pullback from consumers in discretionary segments such as wet dog food, which happens when the consumer is stretched.

Dana McNabb: And then also, we're seeing a little bit of pullback from consumers in discretionary segments such as wet dog food, which happens when the consumer is stretched. When we look to the long term, though, we still think that this is a segment that is going to continue to grow. The humanization trend will continue to accelerate that growth, and we think Blue is well positioned to win in the category. And as Jeff said, we are really pleased with our Q2 performance.

And then also, we're seeing a little bit of pullback from consumers in discretionary segments such as wet dog food, which happens when the consumer is stretched. When we look to the long term, though, we still think that this is a segment that is going to continue to grow. The humanization trend will continue to accelerate that growth, and we think Blue is well positioned to win in the category. And as Jeff said, we are really pleased with our Q2 performance.

Speaker #8: When we look to the long term, though, we still think that this is a segment that is going to continue to grow. The humanization trend will continue to accelerate that growth, and we think Blue is well positioned to win in the category, and, as Jeff said, are really pleased with our Q2.

Speaker #8: performance. Okay.

Speaker #5: Thanks so much.

Andrew Lazar: Thanks so much.

Speaker #4: The next question comes from Max Gumpert with BNP. Your line is open.

Operator: The next question comes from Max Gumpert with BNP. Your line is open.

Speaker #4: open. Hey.

Max Gumpert: Hey, thanks for the question. It's nice to see volumes turning positive in the quarter on the back of your investment in retail, and also to hear the continued confidence you have in this continuing in the back half. I guess what I'm trying to get a sense for is, one, an update on your thinking on the ability for volumes to stay positive after you lap these price cuts. And then two, as you look at the investments you've got in the business through the first half, whether you think it's been enough or you might go back to the well next year as well, given that they are working. So getting a sense for whether having these investments in the base is enough or if you might need to do more again next year. Thanks very much.

Max Gumport: Hey, thanks for the question. It's nice to see volumes turning positive in the quarter on the back of your investment in retail, and also to hear the continued confidence you have in this continuing in the back half. I guess what I'm trying to get a sense for is, one, an update on your thinking on the ability for volumes to stay positive after you lap these price cuts. And then two, as you look at the investments you've got in the business through the first half, whether you think it's been enough or you might go back to the well next year as well, given that they are working. So getting a sense for whether having these investments in the base is enough or if you might need to do more again next year. Thanks very much.

Speaker #7: Thanks for the question. It's nice to see volumes turning positive in the quarter on the back of your investment in retail, and also to hear the continued confidence you have in this continuing in the back half.

Speaker #7: Yeah, I guess what I'm trying to get a sense for—one, your update on your thinking on the ability for volumes to stay positive after you lap these price cuts?

Speaker #7: And then two, as you look at the investments you've got in the business through the first half, whether you think it's been enough, or you might go back to the well next year as well, given that they are working investments in the base—is it enough, or if you might need to—so getting a sense for whether having these, do more again next year.

Speaker #7: Thanks very much.

Speaker #8: Well, as I think about the North America price investments, again, we are really pleased with the progress. We are seeing pounds improve. What we had said is that we were going to adjust prices on two-thirds of our portfolio, and that would be done by the end of Q2.

Dana McNabb: Well, as I think about the North America price investments, again, we are really pleased with the progress. We are seeing pounds improve. What we had said is that we were going to adjust prices on two-thirds of our portfolio, and that would be done by the end of Q2. As we look at performance, almost 90% of where we've added that price investment is at or ahead of what we modeled. We're really encouraged by how it's performed. Of course, we'll continue to monitor the environment. If we think we need to add more, we'll consider it. At this point, we believe that our price is at the right place where it needs to be. Again, it was about getting those prices at shelf to be at the right spot under key cliffs and manageable gaps to the competition.

Speaker #8: And as we look at performance, almost 90% of where we've added that price investment is at or ahead of what we modeled. So we're really encouraged by how it's performed.

Speaker #8: Of course, we'll continue in the modern environment. If we think we need to add more, we'll consider it. But at this point, we believe that our price is at the right place where it needs to be.

Speaker #8: And again, it was about getting those prices at shelf to be at the right spot—under key clips and manageable gaps to the competition.

Speaker #8: And now as we turn to the back half, it's about once your prices are in the right place, is the rest of your remarkability framework strong?

Dana McNabb: And now, as we turn to the back half, it's about once your prices are in the right place, is the rest of your remarkability framework strong? And we really like our plans and how they're working when these prices are right. So as Jeff said, our new products are performing very well. We're on track to be up 25% versus last year. We have strong news. Our advertising content and ROIs are significantly improved, and they're up. And we have strong events planned to get good in-store and online support. So again, winning in the back half is not just about price. It is about remarkability, and I think we're well positioned to continue to improve.

And now, as we turn to the back half, it's about once your prices are in the right place, is the rest of your remarkability framework strong? And we really like our plans and how they're working when these prices are right. So as Jeff said, our new products are performing very well. We're on track to be up 25% versus last year. We have strong news. Our advertising content and ROIs are significantly improved, and they're up. And we have strong events planned to get good in-store and online support. So again, winning in the back half is not just about price. It is about remarkability, and I think we're well positioned to continue to improve.

Speaker #8: And we really like our plans and how they're working when these prices are right. So, as Jeff said, our new products are performing very well.

Speaker #8: We're on track to be up 25% versus last year. We have strong news. Our advertising content and ROIs are significantly improved, and they're up.

Speaker #8: And we have strong events planned to get good in-store and online support. So again, winning in the back half is not just about price.

Speaker #8: It is about remarkability, and I think we're well positioned to continue to improve.

Speaker #7: Great. Thank you. And then just one follow-up with regard to the overdelivery on, on profit in, in two Q. So it, it sounds like you would say it's, it's essentially an unwind in three Q, given that the timing benefits you, you laid out on the, in the prepared remarks.

Max Gumpert: Great. Thank you. And then just one follow-up with regard to the overdelivery on profit in Q2. So it sounds like you would say it's essentially going to unwind in Q3, given the timing benefits you laid out on the prepared remarks. Versus consensus, you had about $0.08 of performance in the quarter. So would it be fair to say there could be $0.08 coming out of Q3 and EPS might be down, roughly speaking, 20% or so year over year? And any way to better frame how we should be thinking about Q3 EPS? Thanks very much.

Max Gumport: Great. Thank you. And then just one follow-up with regard to the overdelivery on profit in Q2. So it sounds like you would say it's essentially going to unwind in Q3, given the timing benefits you laid out on the prepared remarks. Versus consensus, you had about $0.08 of performance in the quarter. So would it be fair to say there could be $0.08 coming out of Q3 and EPS might be down, roughly speaking, 20% or so year over year? And any way to better frame how we should be thinking about Q3 EPS? Thanks very much.

Speaker #7: versus consensus, you had about 8 cents of, of performance in the quarter. So would it be fair to say there could be 8 cents coming out of three Q and EPS might be down roughly speaking 20, 20% or so year over year?

Speaker #7: And any way to better, better frame how we should be thinking about Q3 EPS? Thanks very much.

Speaker #7: much. Yeah.

Jeff Harmening: Yeah, I appreciate the question, and I will try to give you clarity. I think the underlying for us is that against our own internal expectations, we saw favorability due to the three factors I mentioned in my prepared remarks. North America saw supply chain favorability primarily driven by inventory absorption in the quarter, stronger international performance on both top and the bottom line, a portion of which was timing related, and a modest, about half a point of shipment timing benefit in NAR, which Dana covered earlier. We do expect all of those to reverse. So that favorability that we saw in the quarter against our expectations, we do expect to reverse in Q3.

Speaker #3: I— I appreciate the— the question, and— and I will try to give you clarity. I— I think the underlying, for internal us, is that, against our own expectations, we saw favorability due to— due to the three factors I— I mentioned in my prepared remarks.

Speaker #3: Supply chain favorability, primarily driven by inventory absorption in North America, saw the quarter. Stronger international performance, both top and the bottom line, portion of which was timing-related.

Speaker #3: And a modest, about half a point of, shipment timing benefit in earlier. We do expect all of NAR, which, which Dana, Dana covered those, to reverse.

Speaker #3: So that favorability that we saw in the quarter, against our expectations, we do expect to reverse in Q3.

Speaker #7: Okay.

Max Gumpert: Okay. Thanks very much.

Max Gumport: Okay. Thanks very much.

Speaker #7: Thanks very The next

Operator: The next question comes from John Baumgartner with Mizuho. Your line is open.

Speaker #4: Baumgartner with Mizuho, your line is open. Your question comes from John.

Speaker #9: Good morning. Thanks for the question. Maybe, Jeff or Dana, in the prepared comments, you noted the inclination of consumers to buy more on promo.

John Baumgartner: Good morning. Thanks for the question. Maybe Jeff or Dana, in the prepared comments, you noted the inclination of consumers to buy more on promo. And I'm curious if you can elaborate on that. Just given the mention of the higher cost of volume, are you finding that you need to embed some wiggle room for larger promo to cater to that shopping dynamic? And I'm also curious, I guess, bigger picture, how you're seeing the balance between EDLP versus maybe a high-low strategy in this kind of an environment relative to past periods of economic weakness? Thank you.

Speaker #9: And I'm curious if you can elaborate on that. Just given the mention of the higher cost of volume, are you finding that you need to embed some wiggle room for larger promo to cater to that shopping dynamic?

Speaker #9: And I'm also curious, I guess, bigger picture, how you're seeing the balance between, you know, EDLP versus maybe a high-low strategy in this kind of environment relative to past periods of economic weakness?

Speaker #9: Thank

Speaker #9: Thank you. Let me start with that, and then—

Jeff Harmening: I mean, let me start with that and then maybe turn it over to Dana for some commentary. But, you know, what I would say is that in general, we're seeing, I mean, this is no surprise, I don't think, but continue to see consumer weakness, particularly for those making under $100,000 a year. So those in the kind of middle and lower income range, we continue to see that consumer being stressed even as consumers in the higher end of the range, you know, are faring a lot better with the current stock market. And so that plays itself out in a few different ways. One is that people continue to eat at home quite a bit. So 86% or so of eating occasions are still at home and 14% away from home.

Speaker #3: maybe turn it over to Dana for some, some commentary. But, you know, what, what I would say is that in general, we're seeing, I mean, this is no surprise, I don't think, but con-continue to see consumer weakness, particularly for those making under $100,000 a year.

Speaker #3: So those in the kind of the middle and lower, income range, we consider we, we continue to see that consumer being stressed, even, as consumers in the higher end of the range, you know, are, are faring a lot better with the current stock market.

Speaker #3: And so, that plays itself out in a few different ways. One is that people continue to need a home quite a bit. So, 86% or so of eating occasions are still at home, and 14% are away from home.

Speaker #3: And, you know, we haven't really seen a change in that for a couple of quarters. But it's still at a very high level of eating at home.

Jeff Harmening: You know, we haven't really seen a change in that for a couple of quarters, but it's still at a very high level of eating at home. We see people switching some categories. We see consumers switching where they purchase, you know, switching channels and that kind of thing. But we also see it reflected in how much gets purchased on discount when we have it on display or what have you. And so we haven't really been displaying more. It's just that when what we see is that consumers, when there is a discount, we see them buying more because they're financially strained. So, Dana, anything you want to add to that?

You know, we haven't really seen a change in that for a couple of quarters, but it's still at a very high level of eating at home. We see people switching some categories. We see consumers switching where they purchase, you know, switching channels and that kind of thing. But we also see it reflected in how much gets purchased on discount when we have it on display or what have you. And so we haven't really been displaying more. It's just that when what we see is that consumers, when there is a discount, we see them buying more because they're financially strained. So, Dana, anything you want to add to that?

Speaker #3: We see people switching some categories. We see consumers switching where they purchase, you know, and switching channels, and that kind of thing.

Speaker #3: But we also see it reflected in how much gets purchased on discount when we have it on display or what have you.

Speaker #3: And so, we haven't really been displaying more. It's just that what we see is that consumers, when there is a discount, we see them buying more. Anything you want to add to that?

Speaker #8: No, I would just, I

Dana McNabb: No, I would just reiterate that we continue to categorize the promo environment as being quite rational. As Jeff said, the frequency and the depth is similar to last quarter. It's similar to last year. We did see promo activity come up a little bit in November, but we think that's largely related to manufacturers reacting to some of the SNAP changes. But overall, we'd characterize the environment as rational.

Speaker #8: I would just reiterate that we continue to categorize the promo environment as being quite rational, as they're financially strained.

Speaker #8: It's similar to last quarter. It's similar to last year. We did, so Dana, see promo activity come up a little bit in November, but we think that's largely related to manufacturers reacting to some of the SNAP changes.

Speaker #8: But overall, we'd characterize the environment as rational.

Speaker #9: Great. Thank you.

John Baumgartner: Great. Thank you.

Speaker #4: The next question comes from Tom Palmer with JPMorgan. Your line is open.

Operator: The next question comes from Tom Palmer with JPMorgan. Your line is open.

Speaker #9: Good morning. Thanks for the questions. First, just wanted to ask on inflation and, and tariff. Previously, 4 to 5 percent of COGS was the outlook.

Tom Palmer: Good morning. Thanks for the questions. First, just wanted to ask on inflation and tariff. Previously, 4% to 5% of COGS was the outlook. The bakery index pricing would suggest costs are favorable, and then maybe there was a small amount of tariff relief to consider. So just any update on that outlook and kind of maybe as we think about the back half of the year, if there's any sort of favorability. Thank you.

Speaker #9: The bakery index pricing would suggest our costs are favorable, and then maybe there was a small amount of tariff relief to consider. So just any update on that outlook, and kind of maybe, as we think about the back half of the year, if there's any sort of favorability.

Speaker #9: Thank you.

Speaker #3: Sure. So as a reminder, our original guidance included an expectation of about 1 to 2 points of additional headwind to base inflation of about 3%.

Jeff Harmening: Sure. So as a reminder, our original guidance included an expectation of about one to two points of additional headwind to base inflation of about 3%. Our base inflation forecast, despite puts and takes, remains roughly around that 3% mark. Tariffs certainly comfortably within that range. And as we look at kind of the phasing impact, I would just remind that our expectation was that we'd be able to mitigate some, but not all of the tariffs with tariff headwind within the year. And the tariff phasing was pretty minimal in Q1, stepped up in Q2, and we'd expect in the second half for that to step up a little further. So in aggregate, 3% base, we're still comfortable with the 1% to 2% guide on the tariff additional headwind.

Speaker #3: Our base inflation forecast, despite puts and takes, remains roughly around that 3% mark. Tariffs, certainly, are comfortably within that range. And as we look at kind of the phasing impact, I would just remind that our expectation was that we'd be able to mitigate some, but not all, of the tariffs, with tariff headwind minimal in Q1, and then stepped up year.

Speaker #3: Half for that to step up a little, a little further. So in aggregate, 3% base, we're still comfortable with the 1 to 2 percent guide on the tariff additional headwind.

Kofi Bruce: Maybe, Tom, I just add, this is Jeff, that you also have to consider our coverage. And so we tend to be covered at least six to nine months across some of our biggest inputs, and wheat would be one of those. So while you see it play through in the sales line on our P&L, the cost line would be delayed. And so, you know, what you see from wheat prices being down in the short term is probably more going to impact 2027 than it is 2026 on the cost side. Fair point.

Jeff Siemon: Maybe, Tom, I just add, this is Jeff, that you also have to consider our coverage. And so we tend to be covered at least six to nine months across some of our biggest inputs, and wheat would be one of those. So while you see it play through in the sales line on our P&L, the cost line would be delayed. And so, you know, what you see from wheat prices being down in the short term is probably more going to impact 2027 than it is 2026 on the cost side. Fair point.

Speaker #3: This is Jeff. You know, you also have to consider our coverage. And so we tend to be covered at least 6 to 9 months across our— And the tariff phasing was pretty— Maybe, Tom, I'd just add, some of our biggest inputs, and we would be one of those.

Speaker #3: So, while you see it play through in the sales line on our P&L, the cost line would be delayed. And so, you know, what you see from wheat prices being down in the short term is probably more gonna impact '27 than it is '26 on the cost side.

Speaker #7: Fair point.

Speaker #9: Okay, thanks for that. And just to follow up on International, I think in the first quarter you called out a 3% timing benefit.

Tom Palmer: Okay. Thanks for that. And just to follow up on international, I think in the first quarter, you called out a 3% timing benefit that you expected to unwind in the second quarter, and you kind of noted some timing headwinds in Q2 as well. I just wanted to confirm, were there incremental tailwinds, or was it more this 3% timing benefit did not unwind as we think about the second quarter and becomes more of a factor in the back half? Thank you.

Speaker #9: and, and you kind of noted some, some timing headwinds. In, in 2Q as well, I just wanted to confirm, were That you expected there incremental tailwinds, or was it more this, this 3% timing benefit did not unwind, as we think about the second quarter and becomes more of a factor in the, in the back half?

Speaker #9: Thank you.

Speaker #3: Yeah, yeah. I certainly— and it, it is, it is mostly the latter, to your question.

Jeff Harmening: Yeah. Yeah, certainly. It is mostly the latter to your question.

Speaker #9: Okay.

Tom Palmer: Okay. Thanks.

Speaker #9: Thanks. The next

Operator: The next question comes from Steve Powers with Deutsche Bank. Your line is open.

Speaker #4: The question comes from Steve Powers with Deutsche Bank. Your line is open.

Speaker #10: Great. Good morning, everybody. Jeff, pivoting back to Pat, you talked in your opening remarks about positive delivery against Love-Made Fresh, but also, you know, progress on the base business.

Steve Powers: Great. Good morning, everybody. Jeff, pivoting back to PET, you talked in the opening remarks about positive delivery against Love Made Fresh, but also, you know, progress on the base business. And I guess I'm curious as to what degree you think Love Made Fresh has in some ways contributed to that base business progress, even though it's still early. I guess any evidence as to whether you're seeing favorable interplay between the Fresh initiative and/or Blue Buffalo?

Speaker #10: And I guess I'm curious as to what degree you think Love-Made Fresh has, in some ways, contributed to that base business progress, even though it's still early.

Speaker #10: I guess—any evidence as to whether you're seeing favorable interplay between the Fresh initiative and/or Blue Buffalo?

Speaker #3: Yeah, it's a good question and an important one. I would say we're still a little bit early to really know that that's the case.

Jeff Harmening: Yeah, it's a good question and an important one. I would say we're still a little bit early to really know that that's the case. I mean, we're only eight weeks into the launch and probably five weeks into advertising. So I think it's too early to see if the Love Made Fresh advertising, which, by the way, is really good, is going to rub off on the rest of the corner. We may be able to tell you a little bit more after Q3 or Q4 once we get some more time in market. So it wasn't really that. It was really kind of sharpening up our kind of go-to-market on Life Protection Formula and doing a really good job on the advertising on that and continuing to grow our Tiki Cat business, which we acquired, you know, nine months ago. That's growing solidly.

Speaker #3: I mean, we're only eight weeks into the launch, and probably five weeks into advertising. So, I think it's too early to see if the Love-Made Fresh advertising—which, by the way, is really, is really good—

Speaker #3: It's gonna rub off on the rest of the corner. We may be able to tell you a little bit more after, after Q3 or Q4, once we get some more time in market.

Speaker #3: So really, it wasn't really that. It was really kind of sharpening up our go-to-market on Live Protection Formula, and doing a really good job on the advertising on that.

Speaker #3: grow our tiki cap business, which we And continuing to acquired, you know, nine months ago that's growing solidly. And then, adding some more marketing to our, our tasteful line in cap is doing really well and getting a price points right.

Jeff Harmening: And then, adding some more marketing to our Tastefuls line and Tiki Cat is doing really well and getting them price points right. It's really, we probably used all the elements of the Farm to Consumer experience framework and Pet this quarter and saw a nice lift back to positive growth. But so far, I wouldn't say that the Love Made Fresh efforts have had a positive impact on the base, although I wouldn't be shocked to see that, you know, in later quarters as we continue to market it.

And then, adding some more marketing to our Tastefuls line and Tiki Cat is doing really well and getting them price points right. It's really, we probably used all the elements of the Farm to Consumer experience framework and Pet this quarter and saw a nice lift back to positive growth. But so far, I wouldn't say that the Love Made Fresh efforts have had a positive impact on the base, although I wouldn't be shocked to see that, you know, in later quarters as we continue to market it.

Speaker #3: It's, it's really, we probably used all the elements of the marketable experience framework, and, and Pat, this quarter, and saw a nice lift back to positive growth.

Speaker #3: But so far, I wouldn't say that the Love-Made Fresh efforts have had a positive impact on the base, although I wouldn't be shocked to see that in later quarters as we continue to market it.

Speaker #7: Erna, Kofi, if I could just, a little bit more on the back half. just anything to call out in terms of, you know, h-h-how much you know, i-i-impact is, is, is yet to come and any, any, any phasing considerations in terms of how that's likely to layer in 3Q versus 4Q?

Steve Powers: Fair enough. Sophie, if I could just a little bit more on the back half, just anything to call out in terms of, you know, how much impact is yet to come and any phasing considerations in terms of how that's likely to layer in Q3 versus Q4?

Speaker #3: Yeah. I'll, I'll, I'll let me frame the comments just in kind of re-route them in our, our profit expectations for, for the back half, Q3, Q4.

Jeff Harmening: Yeah. Let me frame the comments just and kind of root them in our profit expectations for the back half, Q3, Q4. We do expect, as we've referenced earlier, continued organic sales improvement in the second half. We, as a reminder, always expected our Q3 to be down just because of the overhang from our divestiture, the level of investment that we baked into the year behind the Remarkability framework, and in particular, getting value right in NAR. Then trade expense timing, which, as we've referenced before, is going to be a drag on the first three quarters of the year. As you step into Q4, you have two big factors to keep in focus. We'll see about $100 million favorable tailwind from that trade expense timing due to the phasing impact of last year's investment and the 53rd week, which will also be a pretty significant tailwind.

Speaker #3: we do expect, as we've referenced earlier, continued, organic sales improvement in the second half, and we, as a reminder, always expected our Q3 to be down, just because of the, the, the, the overhang from, our divestiture, the level of investment that we baked into the, to the year behind the remarkability of framework and, in particular, getting value right in NAR.

Speaker #3: And then trade expense timing, which, as we've referenced before, is going to be a drag on the first three quarters of the year. As you step into Q4, you have two big factors to keep in focus.

Speaker #3: We'll see about a $100 million favorable tailwind from that trade expense timing, due to the phasing and impact of last year's investment. And the 53rd week, which will also be a pretty significant tailwind.

Speaker #3: So together, those two items alone are about 30% profit growth in Q4.

Jeff Harmening: So together, those two items alone are about 30% profit growth in Q4.

So together, those two items alone are about 30% profit growth in Q4.

Speaker #7: Okay. Thank you very much. Appreciate it.

Steve Powers: Okay. Thank you very much. Appreciate it.

Speaker #3: You

Jeff Harmening: You bet.

Speaker #3: bet. The next question

Operator: The next question comes from Megan Klapp with Morgan Stanley. Your line is open. Megan, perhaps your line is on mute.

Speaker #4: Comes from Megan Klapp with Morgan Stanley. Your line is open. Megan, perhaps your line is on mute?

Speaker #2: Oh, sorry about that. Here I am. Good morning. Thank you. I wanted to ask about the higher cost of volume that you called out in the prepared remarks, and Kofi.

Peter Galbo: Oh, sorry about that. Here I am. Good morning. Thank you. Wanted to ask about the higher cost of volume that you called out in the prepared remarks. And Kofi, I think in your prepared remarks, you talked about how you expect that to pressure margins in Q3. You obviously still reaffirm the full-year guidance. So can you just help us understand, you know, how that's embedded into the full-year outlook? And is there incremental flexibility in other lines that's kind of offsetting that incremental margin pressure? And how should we think about, you know, whether there's further flexibility should that continue to evolve as you call that something you're watching? Thanks.

Megan Clapp: Oh, sorry about that. Here I am. Good morning. Thank you. Wanted to ask about the higher cost of volume that you called out in the prepared remarks. And Kofi, I think in your prepared remarks, you talked about how you expect that to pressure margins in Q3. You obviously still reaffirm the full-year guidance. So can you just help us understand, you know, how that's embedded into the full-year outlook? And is there incremental flexibility in other lines that's kind of offsetting that incremental margin pressure? And how should we think about, you know, whether there's further flexibility should that continue to evolve as you call that something you're watching? Thanks.

Speaker #2: I think in your prepared remarks, you talked about how you expect that to pressure margins in the third quarter. You obviously still reaffirm the full-year guidance.

Speaker #2: So can you just help us understand, you know, how, how that's embedded into the full year outlook and i-i-is there incremental flexibility in, in other lines that's kind of offsetting that incremental margin pressure and, and how should we think about, you know, whether there's, there's further flexibility should that continue to evolve as, as you called out something you're watching?

Speaker #3: Sure.

Jeff Harmening: Sure. Let me answer it maybe in the context of, you know, where we left guidance. So you will probably note we left our annual guidance unchanged with effectively half of the year to go. That was a big part of the reason, along with obviously the volatility that continues to hang about the sector, whether it's the tariffs, shutdowns, SNAP benefits, you know, or challenges to the consumer environment and the consumer sentiment. So I think for us, as we look forward to the back half, the cost of volume and the pace of volume recovery are probably the two biggest determiners of where we land within that range. And that is broadly why we left the range unchanged.

Speaker #3: Let me, let me answer it maybe in the context of, you know, where we left guidance. So you will probably note we left our annual guidance unchanged with effectively half of the year to go.

Speaker #3: that was a big part of the reason along, along with, obviously, the volatility that continues to hang about, the sector, whether it's the tariffs, shutdowns, SNAP benefits, you know, for, for, for challenges to the consumer environment and the consumer sentiment.

Speaker #3: So I think for us, as we look forward to the back half, the cost of volume and the pace of volume recovery are probably the two biggest determiners of where we land within that range.

Speaker #3: And that is—that is, broadly, w-why we left the range unchanged.

Speaker #2: Okay. That makes sense. And, and maybe just as a follow-up, last quarter you talked about how your category pounds were, were lagging your, your full year expectations a bit, di-driven by a, a few discrete categories.

Peter Galbo: Okay. That makes sense. And maybe just as a follow-up, last quarter, you'd talked about how your category trends were lagging your full-year expectations a bit, driven by a few discrete categories. I was just curious if you could give us an update on, you know, how the category growth within the quarter trended, just particularly given there was a lot of noise around SNAP and the government shutdown. So understanding, again, that there might be noise kind of embedded within that, but just how you're thinking about the category growth and kind of your confidence in the full-year, what's embedded in the full-year outlook.

Megan Clapp: Okay. That makes sense. And maybe just as a follow-up, last quarter, you'd talked about how your category trends were lagging your full-year expectations a bit, driven by a few discrete categories. I was just curious if you could give us an update on, you know, how the category growth within the quarter trended, just particularly given there was a lot of noise around SNAP and the government shutdown. So understanding, again, that there might be noise kind of embedded within that, but just how you're thinking about the category growth and kind of your confidence in the full-year, what's embedded in the full-year outlook.

Speaker #2: I was just curious if you could give us an update on, you know, how the category growth within the quarter trended—just particularly given there was a lot of noise around SNAP and the government shutdown.

Speaker #2: So, understanding again that there might be noise kind of embedded within that, but just how you're thinking about the category growth and kind of your confidence in the full year—what's embedded in the full year?

Speaker #2: outlook. So maybe I'll start it just from a

Kofi Bruce: So maybe I'll start it just from a numbers standpoint. Our category volumes in fiscal 2025 for General Mills categories were flat. They were down about 1% in Q1. So we talked about that last quarter. You know, cereal was one of those which had seen a little bit more pressure. That improved to down about a half a point in Q2. So still not quite back to where they were in 2025, but an improvement. So maybe, Dana, if you want to talk about just the overall category dynamic and consumer.

Speaker #7: From a numbers standpoint, our category volumes in fiscal '25 for General Mills categories were flat. They were down about 1% in Q1—we talked about that last quarter. You know, cereal was one of those, which had seen a little bit more pressure.

Speaker #7: That improved to down about half a point in Q2. So, still not quite back to where they were in '25, but an improvement.

Speaker #7: So maybe, Dana, if you want to talk about just the overall category dynamic and consumer.

Speaker #5: Yeah, I mean, as Jeff said, we did see categories improve, and we outperformed the categories. The one category that still lagged a little bit behind our expectations was cereal.

Dana McNabb: Yeah. I mean, as Jeff said, we did see categories improve, and we outperformed the categories. The one category that still lagged a little bit of our expectations was cereal. Cereal pounds are down about 3%. Typically, historically, they're down in the down 1%, down 2% range. And the reason for the category being down is we're really seeing consumers move to more high-protein alternatives. So the good news for us is that as category leader, our plans are very focused on capturing those growth trends going into the back half. And as a leader, we have a job to improve the categories' growth. The two areas that we're probably the most excited about for the back half, or if we look at our innovation, we are really leading there. Cheerios Protein is already a 0.9 share.

Speaker #5: Cereal pounds are down about 3%. Typically, historically, they're down in the down 1%, down 2% range. And the reason for the category being down is we're really seeing consumers move to more high protein alternatives.

Speaker #5: So the good news for us is that, as category leader, our plans are very focused on capturing those growth tailwinds going into the back half.

Speaker #5: And as a leader, we have a job to improve the category's growth. The two areas that we're probably the most excited about for the back half, or if we look at our innovation, we are really leading there.

Speaker #5: Cheerios Protein is already at a 0.9 share. That business is on track to be $100 million by the end of our fiscal year. And you need to take how that's performing in combination with some really good news and advertising on the core Cheerios franchise. In Q2, Cheerios grew dollars and pounds for the first time in three years.

Dana McNabb: That business is on track to be $100 million by the end of our fiscal year. When you take how that's performing in combination with some really good news and advertising on the core Cheerios franchise, in Q2, Cheerios grew dollars and pounds for the first time in three years. Then if you look at the granola segment, which is what's driving growth in cereal right now, we have the biggest brand. We're the category leader, and it's growing double digits. But granola is only about 6% of our business. It's 12% of the category. So we're coming in January with 10 new granola SKUs, really great tasting products, really good nutrition benefits. We think focusing on the areas that we're growing the faster and leaning into our leadership role, we'll see both the category and our performance improve in the back half.

That business is on track to be $100 million by the end of our fiscal year. When you take how that's performing in combination with some really good news and advertising on the core Cheerios franchise, in Q2, Cheerios grew dollars and pounds for the first time in three years. Then if you look at the granola segment, which is what's driving growth in cereal right now, we have the biggest brand. We're the category leader, and it's growing double digits. But granola is only about 6% of our business. It's 12% of the category. So we're coming in January with 10 new granola SKUs, really great tasting products, really good nutrition benefits. We think focusing on the areas that we're growing the faster and leaning into our leadership role, we'll see both the category and our performance improve in the back half.

Speaker #5: And then, if you look at the granola segment, which is what's driving growth in cereal right now, we have the biggest brand—we're the category leader—and it's growing double digits. But granola is only about 6% of our business.

Speaker #5: It's 12% of the category. So we're coming in January with 10 new granola SKUs—really great-tasting products, really good nutrition benefits. And so we think focusing on the areas that are growing the fastest and leaning into our leadership role will see both the category and our performance improve in the back half.

Speaker #2: Great. Thank you so

Peter Galbo: Great. Thank you so much.

Megan Clapp: Great. Thank you so much.

Speaker #2: much. The next

Operator: The next question comes from Chris Carey with Wells Fargo Securities. Your line is open.

Speaker #4: The question comes from Chris Terry with Wells Fargo Securities. Your line is open.

Speaker #4: open. Hi everyone.

Dana McNabb: Hi everyone. Hope you're well. Can you just expand a bit on the percentage of your portfolio where you've taken or initiated pricing investments? Just get a sense of the percentage of portfolio where you haven't done it. And, you know, connected, say this cost to compete environment sustains or it gets worse. Can you just talk about, you know, visibility on, you know, savings initiatives that would give you the ability to respond to some of these, you know, changes in the backdrop, specifically once, you know, some of the anomalies in inflation like tariffs start to lap going into next year? Well, that's a great question. Why don't I take the first part and then, Kofi, pass it to you for the second part.

Christopher Carey: Hi everyone. Hope you're well. Can you just expand a bit on the percentage of your portfolio where you've taken or initiated pricing investments? Just get a sense of the percentage of portfolio where you haven't done it. And, you know, connected, say this cost to compete environment sustains or it gets worse. Can you just talk about, you know, visibility on, you know, savings initiatives that would give you the ability to respond to some of these, you know, changes in the backdrop, specifically once, you know, some of the anomalies in inflation like tariffs start to lap going into next year?

Speaker #8: Hope you're well. Th-thank you. Can you just ex-expand a bit on the percentage of your portfolio where you've taken, or, or initiated, pricing investments?

Speaker #8: Just to get you know, changes in,

Speaker #8: a sense of the percentage of portfolio where you haven't done it. And, you know, connected, say this cost to compete environment sustains or gets it gets worse, c-can you just talk about, you know, visibility on, you know, savings initiatives that would give you the ability to, to, to respond to some of these?

Dana McNabb: Well, that's a great question. Why don't I take the first part and then, Kofi, pass it to you for the second part.

Speaker #5: Second, the second part. If we think about our price investments, as we said, we were going to have two-thirds of our business have price investments, and it would be completed with that investment by the end of—

Dana McNabb: If we think about our price investments, as we said, we were going to have 2/3 of our business have price investments, and it would be completed with that investment by the end of Q2. We're encouraged that in almost every case where we've made the investments, we've seen the volume response that we are expecting. Those categories, to answer your question, were refrigerated dough, fruit snacks, salty snacks, and soup. I'd also call out our snack bars, which pounds are down a little bit due to a key competitor comping a period of lower distribution. But the elasticities that we've seen on our snack bars are at or ahead of model. So we're really encouraged by the performance we've seen.

If we think about our price investments, as we said, we were going to have 2/3 of our business have price investments, and it would be completed with that investment by the end of Q2. We're encouraged that in almost every case where we've made the investments, we've seen the volume response that we are expecting. Those categories, to answer your question, were refrigerated dough, fruit snacks, salty snacks, and soup. I'd also call out our snack bars, which pounds are down a little bit due to a key competitor comping a period of lower distribution. But the elasticities that we've seen on our snack bars are at or ahead of model. So we're really encouraged by the performance we've seen.

Speaker #5: And we're encouraged that in almost every case where we've made the investments, we've seen the volume response that we are expecting. And those categories, to answer your question on it, were refrigerated dough, fruit snacks, salty snacks, and soup.

Speaker #5: I'd also call out our snack bars, which—pounds are down a little bit due to a key competitor comping a period of lower distribution.

Speaker #5: But the elasticities that we've seen on our snack bars are at or ahead of model, so we're really encouraged by the performance we've seen.

Speaker #5: There is one business where we're still working on it, and that's Totino's Hot Snacks, where you've seen our pound performance take a little bit of a step back.

Dana McNabb: There is one business where we're still working on it, and that's Totino's Hot Snacks, where you've seen our pound performance take a little bit of a step back. Now, we are managing through a price pack architecture conversion from a bag to a box to improve our shelf visibility. And we're still working through that and need a little bit more time to really understand if these price investments are working. But overall, on our biggest businesses, this base price investment is on or ahead of model.

There is one business where we're still working on it, and that's Totino's Hot Snacks, where you've seen our pound performance take a little bit of a step back. Now, we are managing through a price pack architecture conversion from a bag to a box to improve our shelf visibility. And we're still working through that and need a little bit more time to really understand if these price investments are working. But overall, on our biggest businesses, this base price investment is on or ahead of model.

Speaker #5: Right now, we are managing through a price pack architecture conversion from a bag to a box to improve our shelf visibility. We're still working through that and need a little bit more time to really understand if these price investments are working.

Speaker #5: But overall, on our biggest businesses, this base price investment is on or ahead of model.

Speaker #7: And then, to your point about leverage and flexibility in the middle of the P&L, I would reiterate we have really good visibility to delivery at the 5% plus mark this year.

Jeff Harmening: To your point about leverage and flexibility in the middle of the P&L, I would reiterate, we have really good visibility to delivery at the 5% plus mark this year. We're delivering every cent of the transformation savings we outlined at the beginning of the year. As we play forward, while I won't give you a specific guidance for next year yet, we continue to remain confident in our ability to deliver at least above 4%. The transformation initiative is continued and ongoing in multi-year as a reminder. I would expect additional savings to come from that as well.

Kofi Bruce: To your point about leverage and flexibility in the middle of the P&L, I would reiterate, we have really good visibility to delivery at the 5% plus mark this year. We're delivering every cent of the transformation savings we outlined at the beginning of the year. As we play forward, while I won't give you a specific guidance for next year yet, we continue to remain confident in our ability to deliver at least above 4%. The transformation initiative is continued and ongoing in multi-year as a reminder. I would expect additional savings to come from that as well.

Speaker #7: And we're delivering every cent of the transformation savings we outlined at the beginning of the year. As we play forward, while I won't give you a specific guide for next year yet, we continue to remain confident in our ability to deliver at least, above, 4%.

Speaker #7: And the transformation initiatives continue in an ongoing and multi-year way, as a reminder. So, I would expect additional savings to come from that as well.

Speaker #7: well. Okay.

Dana McNabb: Okay. Thank you both. Just the quick follow-up is on Wilderness. Can you just expand on where we're at with Wilderness, you know, the current strategy with Wilderness and, you know, how you could, you know, envision, you know, potential tweaks or just thought process on, you know, how to improve the performance of the business if current strategy, you know, isn't delivering the results that you'd like in the coming quarters? Thank you. Yeah. It's a really great question. If I look at our Q2 performance, it was similar to Q1. Business is down, and we don't find that performance acceptable. What we know about Wilderness is the total product offering across all the levers of remarkability needs to be improved. So the team is really working on a new positioning.

Christopher Carey: Okay. Thank you both. Just the quick follow-up is on Wilderness. Can you just expand on where we're at with Wilderness, you know, the current strategy with Wilderness and, you know, how you could, you know, envision, you know, potential tweaks or just thought process on, you know, how to improve the performance of the business if current strategy, you know, isn't delivering the results that you'd like in the coming quarters? Thank you.

Speaker #8: Thank you both. just the, the quick follow-up is on wilderness. c-can you just expand on where we're at with wilderness, you know, the, the current strategy with wilderness and, you know, how, how you could, you know, envision, you know, potential tweaks or just thought process on, you know, how to improve the performance of the business if, if current strategy you know, isn't, isn't delivering the results that, that you'd like in, in the coming quarters.

Speaker #8: Thank you.

Dana McNabb: Yeah. It's a really great question. If I look at our Q2 performance, it was similar to Q1. Business is down, and we don't find that performance acceptable. What we know about Wilderness is the total product offering across all the levers of remarkability needs to be improved. So the team is really working on a new positioning.

Speaker #5: Yeah, it's a really great question. If I look at our Q2 performance, it was similar to Q1. Business is down, and we don't find that performance acceptable.

Speaker #5: Wilderness is the total product offering across all the levers of what we know about remarkability needs to be improved. So the team is really working on a new positioning as we turn to the back half.

Dana McNabb: As we turn to the back half, we're going to be bringing protein news, some strong protein-first new products. We've got new comparative advertising that we'll be launching in the market, and we've got to improve our in-store execution. So we have a good plan in place. I'm confident that we're on the right things, but there's definitely more work to do. Okay. Thank you.

As we turn to the back half, we're going to be bringing protein news, some strong protein-first new products. We've got new comparative advertising that we'll be launching in the market, and we've got to improve our in-store execution. So we have a good plan in place. I'm confident that we're on the right things, but there's definitely more work to do.

Speaker #5: We're going to be bringing new protein products. We've got new comparative, strong, protein-first advertising that we'll be launching in the market, and we've got to improve our in-store execution.

Speaker #5: So, we have a good P-plan in place. I'm confident that we're on the right things, but there's definitely more work to do.

Christopher Carey: Okay. Thank you.

Speaker #8: Okay. Thank you.

Speaker #4: The next question comes from David Palmer with Evercore ISI. Your line is open.

Operator: The next question comes from David Palmer with Evercore ISI. Your line is open.

Speaker #9: Thanks. Yeah, down to one, you know, sort of big-picture question. You know, fiscal '26, it's been about a return to volume growth, and understandable that would be step one.

Steve Powers: Thanks. Yeah. Down to one, you know, sort of big picture question. You know, fiscal 2026, it's been about a return to volume growth, and understandable that would be step one. But I'm thinking about consensus expectations for some profit growth, particularly lapping the extra week as we look out in fiscal 2027. So I'm wondering, you know, maybe you could help us or coach us how we should be reviewing your consumption data in North America Retail and Pet to really inform us about whether profit growth might be in the cards for fiscal 2027. You know, what sort of specifics, maybe in terms of price mix and promotion effectiveness or the level of volume recovery, any sort of clues that you would provide to us would be helpful. And thank you.

David Palmer: Thanks. Yeah. Down to one, you know, sort of big picture question. You know, fiscal 2026, it's been about a return to volume growth, and understandable that would be step one. But I'm thinking about consensus expectations for some profit growth, particularly lapping the extra week as we look out in fiscal 2027. So I'm wondering, you know, maybe you could help us or coach us how we should be reviewing your consumption data in North America Retail and Pet to really inform us about whether profit growth might be in the cards for fiscal 2027. You know, what sort of specifics, maybe in terms of price mix and promotion effectiveness or the level of volume recovery, any sort of clues that you would provide to us would be helpful. And thank you.

Speaker #9: But I'm thinking about consensus expectations for some profit growth, particularly lapping the extra week as we get to '27. So I'm wondering, you know, maybe you could help us or coach us on how we should be reviewing your consumption data in North America Retail and Pet to assess whether profit growth might be in the cards for fiscal '27.

Speaker #9: You know, what sort of specifics, maybe in terms of price mix and promotion effectiveness, or the level of volume recovery? Any sort of clues that you would provide to us would be helpful.

Speaker #9: And thank you.

Speaker #7: Sure. Well, it w I will start by just affirming we, we, we are pleased with the, the progress trajectory. that work is not we've made on improving our growth yet done, so it'd be premature for me to, to, to get on record and, and start building too heavily, for F-27.

Jeff Harmening: Sure. Well, I will start by just affirming we are pleased with the progress we've made on improving our growth trajectory. That work is not yet done. So it'd be premature for me to get on record and start building too heavily for F27. I think you're right to call it the 53rd week as a comparison factor. That will definitely just be a built-in structural, you know, mathematical, excuse me, headwind next year. So, you know, but beyond that and underlying, our expectations are to continue to build on momentum that we've started this year. So we'll come back to that. Obviously, we've got a touch point at Peggy, and that's probably a better place for us to start having discussions about the road ahead.

Kofi Bruce: Sure. Well, I will start by just affirming we are pleased with the progress we've made on improving our growth trajectory. That work is not yet done. So it'd be premature for me to get on record and start building too heavily for F27. I think you're right to call it the 53rd week as a comparison factor. That will definitely just be a built-in structural, you know, mathematical, excuse me, headwind next year. So, you know, but beyond that and underlying, our expectations are to continue to build on momentum that we've started this year. So we'll come back to that. Obviously, we've got a touch point at Peggy, and that's probably a better place for us to start having discussions about the road ahead.

Speaker #7: I think you're right to call it the 53rd week as a comparison factor that will definitely just be a built-in structural, you know, mathematical—excuse me—headwind next year.

Speaker #7: So, you know, but beyond that, and underlying, I would—our expectations are to continue to build on the momentum that we've started this year.

Speaker #7: So, we'll come back to that, obviously. We've got a touchpoint at Cagney, and that's probably a better place for us to start having discussions about the road ahead.

Speaker #9: All right. I'll pass it

Steve Powers: All right. I'll pass it on.

David Palmer: All right. I'll pass it on.

Speaker #9: on. The next

Operator: The next question comes from Matt Smith with Stifel. Your line is open.

Speaker #4: The next question comes from Matt Smith with Stifel. Your line is open.

Speaker #4: open. Hi.

Speaker #10: Thank you. Dana, you talked about a high hit rate where you have the price adjustments and remarkability framework in place—I think 90% or so.

Dana McNabb: Hi. Thank you. Dana, you talked about a high hit rate where you have the price adjustments and Remarkability framework in place, I think 90% or so. But there's obviously 10% that's still lagging your expectation. You talked about Totino's a bit, but is there a common thread that needs to be addressed around some of the areas where you've seen less effectiveness? I wouldn't say that there's a common thread. I mean, it really is Totino's. Maybe a few SKUs in Old El Paso on our kits business. But for the most part, again, on the Totino's business, it's really about this conversion and Price Pack Architecture. So the data isn't clean, and it's hard to see exactly how things are performing and diagnose it correctly. So I need a few more weeks to really be sure.

Matthew Smith: Hi. Thank you. Dana, you talked about a high hit rate where you have the price adjustments and Remarkability framework in place, I think 90% or so. But there's obviously 10% that's still lagging your expectation. You talked about Totino's a bit, but is there a common thread that needs to be addressed around some of the areas where you've seen less effectiveness?

Speaker #10: But there's, obviously, 10% that's still lagging your expectation. You, you, you talked about Totino's a bit, but is there a common thread that needs to be addressed around some of the areas where you've seen less...

Speaker #10: effectiveness? I wouldn't say that

Dana McNabb: I wouldn't say that there's a common thread. I mean, it really is Totino's. Maybe a few SKUs in Old El Paso on our kits business. But for the most part, again, on the Totino's business, it's really about this conversion and Price Pack Architecture. So the data isn't clean, and it's hard to see exactly how things are performing and diagnose it correctly. So I need a few more weeks to really be sure.

Speaker #5: Totino’s—maybe a few SKUs in there, there’s a common thread. I mean, it really is Old El Paso on our kits business, but for the most part, again, on the Totino’s business, it’s really about this conversion and price pack architecture.

Speaker #5: It’s hard to see exactly how things are performing and diagnose it, so the data isn’t clean. So we need a few more weeks to really be sure.

Speaker #5: And I would say, on that business, once we feel like we're through the conversion and we've got a better sense of the price investment, I really like the advertising that we've got going.

Dana McNabb: I would say on that business, once we feel like we're through the conversion and we've got a better sense of the price investment, I really like the advertising that we've got going. We are talking about 10 rolls for $1. That's resonating really well. We just launched our ultimate pizza line, which is this really great tasting pizza, probably the best we've launched maybe ever. And at an affordable price point that people expect, we know we've got that right. So I think the combination of a more clean read and focusing on the other levers of remarkability will be able to talk with more precision on Totino’s next quarter.

I would say on that business, once we feel like we're through the conversion and we've got a better sense of the price investment, I really like the advertising that we've got going. We are talking about 10 rolls for $1. That's resonating really well. We just launched our ultimate pizza line, which is this really great tasting pizza, probably the best we've launched maybe ever. And at an affordable price point that people expect, we know we've got that right. So I think the combination of a more clean read and focusing on the other levers of remarkability will be able to talk with more precision on Totino’s next quarter.

Speaker #5: We are talking about 10 rolls for a dollar. That's resonating really well. And we just launched our Ultimate Pizza line, which is this really great-tasting pizza, probably the best we've launched maybe ever.

Speaker #5: and at an affordable price point that people expect. We know we've got that right. And so, I think the combination of a more clean read, and focusing on the other levers of remarkability, we'll be able to talk with,

Speaker #5: quarter. Yeah.

Speaker #7: And I would just build on Dana's comments by just reinforcing the fact that 90-plus percent—as good or better than what we anticipated—I would take that kind of on any forecast.

Jeff Harmening: Yeah. I would just build on Dana's comments by just reinforcing the fact that 90+% as good or better than what we anticipated. I would take that kind of on any forecast, but particularly on something as important as these price adjustments that we have made. So just, you know, from my seat, I am really pleased with the way the team has not only modeled out the pricing, but also executed against it. It's fair to ask and to get the question. I just want you all listening to know that that kind of accuracy on something this big and complicated and important over a period of time, I'm really thrilled with the work that the team has done.

Speaker #7: But particularly on something as important as these price adjustments that we have made. And so, just, you know, from my seat, I am really pleased with the way the team has not only modeled out the pricing but also executed against it.

Speaker #7: And so it's fair to ask, and I get the question, I just want I just want you all listening to know that that kind of accuracy on something this big and complicated and important over a period of time, I'm, I'm, I'm really thrilled with the work that the, the team has done.

Speaker #10: Thanks for that. And, as a follow-up question, as it relates to the channel shift you mentioned in pet that's been ongoing—that consumers are moving towards unmeasured channels—what channels are you currently seeing take share from traditional channels, and what do you think is driving the consumer behavior there?

Dana McNabb: Thanks for that. And as a follow-up question, as it relates to the channel shift you mentioned in pet, it's been ongoing that consumers are moving towards unmeasured channels. But what channels are you currently seeing take share from traditional channels, and what do you think's driving the consumer behavior there? Thank you. It's a great question. The place that we're seeing the shift go to is definitely e-commerce. So pet purchases over-index in the e-commerce channel, and that's the place where we're seeing the dollars go to.

Matthew Smith: Thanks for that. And as a follow-up question, as it relates to the channel shift you mentioned in pet, it's been ongoing that consumers are moving towards unmeasured channels. But what channels are you currently seeing take share from traditional channels, and what do you think's driving the consumer behavior there? Thank you.

Speaker #10: Thank

Speaker #10: you. It's a great question.

Dana McNabb: It's a great question. The place that we're seeing the shift go to is definitely e-commerce. So pet purchases over-index in the e-commerce channel, and that's the place where we're seeing the dollars go to.

Speaker #5: Definitely e-commerce. So, pet, the place that we're seeing the shift go to is con purchases over-index in the e-commerce channel, and that's the place where we're seeing the dollars go.

Speaker #5: to. This concludes the

Operator: This concludes the question and answer session and will conclude today's conference call. We thank you for joining. You may now disconnect.

Q2 2026 General Mills Inc Earnings Call - Q&A

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