General Mills Inc.’s stock rose Wednesday after the packaged-food giant beat Wall Street estimates for adjusted profit and revenue, although it said it continues to face inflation and pressure on margins.

General Mills posted a smaller-than-expected drop in quarterly sales on Wednesday, benefiting from improved demand as the Cheerios maker cut prices for some of its products.

The maker of packaged foods reports adjusted earnings of $1.07 a share, beating Wall Street estimates by a penny.

General Mills said its quarterly profit fell on weaker sales, particularly in North America, as higher costs weighed on margins. The maker of Lucky Charms cereal and Bisquick pancake mix reported Wednesday that sales fell 1% year-over-year in the most-recent quarter,