Key facts
- Dana McNabb will succeed Jeff Harmening as CEO of General Mills on January 1.
- McNabb has 27 years of experience at General Mills.
- Harmening will become executive chair after nearly a decade as CEO.
- McNabb will be General Mills' first woman CEO.
- General Mills reported first-quarter results that beat estimates and reaffirmed its annual forecast.
General Mills appointed Chief Operating Officer Dana McNabb as its next CEO, effective January 1, succeeding Jeff Harmening who will transition to executive chair. McNabb, who has spent 27 years with the company, will lead General Mills through a challenging period marked by high inflation, subdued consumer spending, and market share erosion from private labels.
Harmening, who has led the company for nearly a decade, is credited with spearheading its entry into the pet-food market through the Blue Buffalo acquisition, reshaping the company's portfolio, and increasing investment in digital capabilities.
Investors like Hightower Advisors' Stephanie Link noted that McNabb faces a significant task in returning the company to profitable growth. Her priorities are expected to include narrowing the product set beyond North American yogurt, focusing on core brands, particularly health-focused offerings, and modernizing the supply chain. Brian Mulberry of Zacks Investment Management highlighted McNabb's biggest challenge as making familiar brands appealing to consumers who remain highly selective.
General Mills is contending with rising costs, including those related to tariffs on packaging materials, and is seeking price increases to protect its margins. Earlier this month, the company reported first-quarter results that exceeded sales and profit estimates and reaffirmed its annual forecast.
Shares of General Mills, which have fallen approximately 27% year-to-date, were down about 3% in morning trading.