Revenue declined 7% year over year and the company lowered its full-year sales outlook, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
Cramer was particularly concerned that General Mills' Yoplait yogurt line, which had been such a standout performer, is now "doing quite poorly," as is the Pillsbury refrigerated dough line.
Cramer sees too many "tired" General Mills brands. The company acquired Annie's in a move to become more natural and organic but that hasn't been enough to offset the slowing of other lines.
Something needs to be done, and soon, because the company's old brands are slowing too fast and General Mills can't go natural and organic fast enough, Cramer said. CEO Ken Powell is terrific but he needs to find a way to fix this company's problems now.
Historically, the stock tends to find some support when its dividend yield hits 3.5%, he noted, but the decline in General Mills has other implications. For instance, it will make Dow 20,000 harder to hit. Cramer explained that because General Mills is a dividend stock, it will weigh on others, such as a Procter & Gamble (PG) - Get Report , that have a weighting in the Dow.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.