Inflation is reducing the sales of all companies, even that of the well-known food manufacturer JM Smucker (NYSE:SJM).

During this quarter's earnings cycle, many companies have warned of cautious consumers as inflation is high and staying high. And it's not just expensive items like cars and furniture that consumers are cutting back on.

JM Smucker Co SJMthe parent company of Smucker's jelly and jam, warned that people would cut back on spending at convenience stores.

Smucker's, which also owns the Jif peanut butter and Uncrustable brands, reported stronger-than-expected earnings per share for the first quarter, but the company's lower guidance and cautious comments led to a share sell-off after the report was released.

Shares closed Wednesday's session down nearly 5%; they traded 1.30% lower at $113.32 on Thursday.

See also: Dollar General Q2 earnings: Profit miss, slashed forecast and shrinking margins

Analysts adjusted their expectations for the prepared food giant, with CitiGroup, BofA Securities and TD Cowen cutting their price targets after the report. However, the company highlighted significant, double-digit growth in its Uncrustable brand, a packaged peanut butter and jelly sandwich found in the frozen food section of grocery stores.

But in other areas, such as coffee, Smucker's executives stressed that higher input costs forced the company to raise prices, thereby weakening sales.

If consumers continue to spend less in convenience stores and on branded products, this could create headwinds for other food companies, such as Mondelez International MDLZ, Kraft-Heinz KHC And General Mills GIS.

Thursday morning, Dollar General Corp DG reported earnings that were below Wall Street estimates and warned of a “financially strapped” customer, echoing Smucker's assessment.

Data on consumer spending, the Federal Reserve's preferred inflation indicator, will be released Friday morning and should provide more insight into whether prices are rising or falling.

Read more: JM Smucker cuts fiscal 2025 guidance after Q1 earnings announcement: Read why

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