General Mills Shrinks Factory Footprint While Pushing Gushers Into the Candy Aisle

The 160-year-old food giant is simultaneously cutting costs and chasing new shelf space. General Mills has announced the closure of three plants in Missouri and the elimination of 163 positions as part of a broader consolidation effort, even as it rolls out a bold expansion of its Gushers brand into the confectionery aisle for the first time.

The dual moves reflect a company under pressure. Net sales fell 8% in the fiscal third quarter to $4.4 billion, while adjusted operating profit tumbled 32% in constant currency. Organic sales — stripping out acquisitions and divestitures — declined 3%. The bottom line took an even harder hit, with net earnings plunging 41%.

A Historic Appointment Amid the Turmoil

Into this environment steps Dana McNabb, who will become the company's first female chief operating officer in its 160-year history. The 25-year General Mills veteran will take on the role this summer and also join the board of directors. McNabb will oversee all global operations, including international sales, the foodservice segment, and North American retail, reporting directly to CEO Jeff Harmening. Her immediate mandate: stabilize the struggling pet food and US retail divisions.

Gushers Goes Where No Fruit Snack Has Gone Before

While the cost-cutting grabs headlines, the product pipeline tells a different story. General Mills is betting that nostalgia and bold flavors can reignite growth. The new Gushers varieties — Super Sour and Sweet & Fiery — mark the brand's debut in the candy aisle. The latter taps into the "swicy" trend, combining hot mango with spicy watermelon, and both products are free from artificial colors. They will launch exclusively at Target before expanding to other major retailers this summer.

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The innovation push doesn't stop there. Fruit by the Foot Splitz introduces a separable double strip in peach and blueberry, while Fruit Roll-Ups Rainbow Sherbet blends raspberry, lemon, and orange creamsicle. All are slated for wide distribution by mid-year.

A Turnaround Narrative Hinges on Q4

For fiscal 2026, management has set a clear target: boost revenue from new product introductions by roughly 25%. Three consumer trends anchor the strategy — intense flavors, nostalgic brands, and functional benefits like protein and fiber.

The fourth quarter is being positioned as an inflection point. A more favorable comparison base, an extra 53rd calendar week, and improving market share are expected to reverse the downward trajectory. The company has already streamlined its portfolio by exiting the Brazil market and completing the sale of its yogurt business.

Wall Street Remains Wary

The stock tells a sobering story. Trading near $35, shares have lost nearly a third of their value over the past year, dragging the market capitalization to roughly $19 billion. The price-to-earnings ratio stands at about 8.5 — a steep discount to the industry average of 17 and the peer group average above 23.

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Stifel recently cut its price target from $44 to $40, though it maintains a buy rating. The broader analyst consensus leans neutral. Earnings per share for the current fiscal year are projected to decline roughly 18% to $3.44.

The coming weeks will bring the fiscal fourth-quarter results — and the first real test of whether Gushers in the candy aisle represents a genuine strategic pivot or just a fleeting marketing moment.

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