General Mills drops 5% today, becomes latest company to warn about faltering consumers

Shares of Cheerios maker General Mills plunged the most in a year after new annual guidance indicated price hikes on ready-to-eat cereals and meal kits would no longer offset slowing sales as consumers pull back on spending.

While price increases fueled top-line growth for the companies, volumes have taken a hit in recent quarters, signaling increasing resistance from inflation-weary customers against further price hikes.

“We'll see some (more hikes in) pricing this year because we still see inflation in the marketplace,” General Mills CEO Jeffrey Harmening said.

Just yesterday, Walgreens Boots Alliance Inc. shares plunged to the lowest in a decade after it reported “a more cautious and value-driven consumer.”