<div id="readability-page-1">In a surprising turn of events, General Mills reported revenues of $4.86 billion for its second fiscal quarter, surpassing Wall Street’s expectations of $4.78 billion. Yet, the company’s stock fell nearly 3% after the announcement, hinting at underlying issues. CEO Jeff Harmening acknowledged a significant shift in consumer behavior: there is a newfound resistance to premium pricing despite an uptick in sales volume. This shift has necessitated an increase in discounts and promotional spending, which has adversely affected profit margins. The Minneapolis-based food giant, known for brands such as Cheerios and Pillsbury, is winning the sales battle but losing the profit war as consumer preferences shift.</div>

<p>General Mills reported Q2 revenues of $4.86 billion, exceeding expectations, but its stock fell nearly 3% due to profit margin concerns. CEO Jeff Harmening noted a shift in consumer behavior, with resistance to premium pricing despite increased sales volume. This has led to more discounts and promotional spending, impacting profits. The company is facing a price war, cutting prices on 67% of products as profits drop 48%.</p>

General Mills declares price war—67% of products slashed as profit collapses 48%