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Snacks / Monday, June 26, 2023

Checking on Chex… Snack star General Mills is happy to spoil your dinner. When the Minnesota-based maker of Dunkaroos, Yoplait, Chex Mix, and cereals like Cheerios last reported, it beat sales-growth expectations. Higher prices played a role, but General Mills has more than just inflation going for it. Nearly half of US consumers are now eating at least three snacks a day, up 10% in the past two years — with snack sales hitting $181B last year. We'll see if the munching momentum continued when General Mills reports Wednesday.

Too many swooshes… Nike reports on Thursday, and the world’s biggest shoe seller has a sneaker problem. Overstock has plagued the company like a wet sock, with inventory swelling 16% and 44% in the past two quarters. Foot Locker, which says Nike makes up 70% of its sales, recently cut its annual outlook and will likely have a glut of Nike kicks to move through markdowns. The shoe surplus comes as Nike pulls back on its direct-to-consumer efforts and pivots back to wholesale, which outpaced D2C growth last fall.

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