RBC downgrades General Mills on plunging Yoplait yogurt sales

A customer picks up a General Mills Inc. Yoplait brand yogurt at a supermarket in Princeton, Illinois, U.S.
Daniel Acker | Bloomberg | Getty Images

RBC Capital Markets lowered its rating for General Mills shares to sector perform from outperform, saying the Yoplait yogurt maker's financial results will come in below the company's targets in the coming year.

"While center-store food category sales trends have broadly eroded, it appears that Mills' yogurt declines (as well as cereal, soup, and dough) are too much to overcome near-term," analyst David Palmer wrote in a note to clients Thursday.

"We now believe it is unlikely that Mills will meet its full-year FX-neutral global sales growth target of flat to down 2% ... and this may pressure full-year adjusted EPS."