General Mills Inc. fell the most in the S&P 500 after the food producer’s annual forecast suggested that price hikes will no longer make up for slowing sales as inflation-weary shoppers cut back on spending.

“This caution could have an impact on their at-home versus away-from-home choices, the channels they shop, and the brands they choose,” Chief Executive Officer Jeff Harmening said in a statement.

Adjusted profit growth in the fiscal year ending in May 2024 will be at a mid-single-digits percentage, Minneapolis-based General Mills said. Adjusted earnings in fiscal 2023 totaled $4.30 a share, up 10% in constant currency. Annual volumes declined in all categories except North America foodservice, while price/mix — the value of the company’s overall blend of price points — increased by at least 10% across the board.

The outlook underscored the persistent drag from stubborn US inflation and hinted at the limits to consumers’ resilience. Buoyed by savings and pandemic-era stimulus, consumers have proved remarkably durable in the face of rapid price hikes and the Federal Reserve’s rush to ratchet up interest rates in response. But investors have been watching closely to see when corporate earnings might buckle.

General Mills slid 5.2%, the biggest drop since May 2022, to $76.72 and paced losses in the S&P 500. The shares are now down 8.5% this year, lagging a 14% gain for the benchmark index.

Retailers are no longer holding as much inventory as they had been, executives said on the earnings call Wednesday, noting that as supply chains have normalized, so have the amounts of products they want to keep on hand.

The inventory reductions drove a 3% headwind to General Mills’ organic sales growth in the quarter, though it’s a challenge for the package food space of late, Barclays analyst Andrew Lazar wrote.

For the fourth quarter, General Mills sales fell short of estimates compiled by Bloomberg while adjusted profit exceeded expectations.

--With assistance from Deena Shanker.