Why did Kellogg stock pop over 8% in premarket?
Kellogg stock popped over 8% in premarket trading before pulling back to finish Tuesday up just 2%. The early-day excitement stemmed from a press release detailing the famous 116-year-old cereal brand’s preliminary plans to split the company into three separate ventures. Kellogg trades up nearly 6.5% for the year.
Is Kellogg’s plant co going out of business?
The new company’s products will anchor on the MorningStar Farms brand for its products. However, unlike the other two spin-offs, Kellogg has admitted it’s entertaining the possibility of selling Plant Co. (For further details on the proposed split, you can see Kellogg’s official press release here .)
What does Kellogg’s proposed spin-off mean for investors?
Fortunately, Kellogg has kept them in mind. If it proceeds as intended, the proposed split will result in “tax-free distributions” of both North America Cereal Co. and Plant Co. shares. Anyone invested in Kellogg Co. prior to the spin-off will receive their new shares on a pro-rata basis relative to their holdings at the record date.
Why did Kellogg’s split its own brands?
Since, Kellogg’s own brands have been forced to compete for money and time. The split hopes to rectify this problem. Or as Kellogg CEO Stele Cahillane put it: “ , Frosted Flakes does not have to compete with Pringles for resources.”
Why is Kellogg splitting up?
While one big Kellogg Co. might have spread resources and attention too thin over its wide variety of products, splitting the business up like a nicely partitioned toaster waffle could provide better return on investment, according to Emilie Feldman at the University of Pennsylvania's Wharton School.
Is Kellogg Company a good stock to buy?
Kellogg has received a consensus rating of Hold. The company's average rating score is 2.09, and is based on 3 buy ratings, 6 hold ratings, and 2 sell ratings.
Why was the Kellogg brand not successful?
The key reason of Kellogg's failure was the fact that the flavour of its products do not matched the cultural and taste preference of Indian consumers. In other nations, eating habits were more or less same but in India it changes after every 100 kilometres from idli-dosa in south to parathas-kachori in north.
What destroyed Kellogg's factory?
1906: Battle Creek Toasted Corn Flake Company is founded in Battle Creek, Michigan, by Will Keith Kellogg. 1907: The company is renamed Toasted Corn Flake Company; the main factory building is destroyed by fire.
Is Kellogg a good long term investment?
Kellogg Company - Hold Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of K, demonstrate its potential to outperform the market. It currently has a Growth Score of C.
Does Kellogg's pay a dividend?
Dividend History - Annual Kellogg has paid 390 dividends since 1925.
Who is Kellogg biggest competitor?
Kellogg's Competitors General Mills. Mondelez International. Kraft Heinz. J M Smucker. Ingredion. Quaker Oats Company. Nestle. Conagra Foods.More items...•
What changes did Kellogg's India conduct towards aligning elements of its strategy to win India market?
A revised strategy Kellogg's reduced the price of their products and began to offer a wider range of product sizes to appeal to different customers. Individual packs were especially popular. Messaging was also changed, to reposition the cereals as a fun choice rather than just a nutritious one.
How did Kellogg's almost fail in India?
Corn flakes were almost 30% costlier than their nearest competitor. People didn't see value in spending extra bucks on them. Oh, that crispiness: Kellogg's massively advertised their crispy flakes. But when the Indian consumers used those flakes with hot milk (they liked it hot, as I said above), they became soggy.
Did the Kellogg's factory burn down?
(WHTM) — A small fire occurred at the Kellogg's plant in East Hempfield Township, Lancaster County on Saturday, Dec. 11. A spokesperson for the company says fire crews were called to a part of the building around 9:00 pm Saturday night.
What happened with Kellogg's?
The 2021 Kellogg's strike was a labor strike started on October 5, 2021 and ended December 21, 2021 involving about 1,400 workers for food manufacturer Kellogg's, unionized as members of the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union (BCTGM).
Why are Kellogg's workers on strike?
The strike kicked off in October at four U.S. plants that produce Froot Loops, Corn Flakes and other cereal brands, constraining the company's production capacity and forcing it to hire temporary workers.
Why did Kellogg divest non-core businesses?
The basic idea behind divesting non-core businesses was so that Kellogg could focus on its core brands, marketing, and innovation. While fourth-quarter adjusted earnings per share declined because core brands couldn't offset the divestitures in the near-term, management will need to prove that its focus on core brands can more than offset that loss. Kellogg has not only taken steps to improve its focus on core brands -- a key part in succeeding in the a competitive consumer discretionary industry -- but it has started to optimize its supply chain distribution and prioritize debt reduction. However, those strategic moves will take time and patience to bear fruit.
Does Kellogg have a focus on core brands?
Kellogg has not only taken steps to improve its focus on core brands -- a key part in succeeding in the a competitive consumer discretionary industry -- but it has started to optimize its supply chain distribution and prioritize debt reduction. However, those strategic moves will take time and patience to bear fruit.
What happened
Shares of Kellogg Company (NYSE: K) stock dropped 5% in early trading Thursday, despite the cereals giant reporting revenues that broadly met expectations and earnings that beat expectations for its fiscal first quarter 2019. As of 2:15 p.m. EDT, Kellogg's decline had moderated to about 3.1%.
So what
That's the good news. The bad news is that, as calculated according to generally accepted accounting principles (GAAP), Kellogg's GAAP earnings were only $0.82 per share and were thus down 35% in comparison to last year's Q1. (Pro forma profits declined 18% -- still not a great result.)
Now what
As announced in April, Kellogg plans to sell off "selected cookies, fruit snacks, pie crusts, and ice-cream cones" in a deal expected to close in late July. Management updated its guidance to incorporate the likely effect of these divestitures:
How much did Kellogg's sales in 2019?
These consumer staple products have stable demand, but they haven't provided Kellogg's with much growth. In fact, its 2019 adjusted sales were $13.9 billion, only 1.9% year-over-year growth when stripping out the effects of acquisitions, divestitures, and foreign currency translations.
How much cash flow does Kellogg have in 2020?
For the first three quarters of 2020, Kellogg's operating cash flow was $1.6 billion. After subtracting capital expenditures of $326 million, that left free cash flow of $1.3 billion, leaving plenty left over for the $586 million of dividends. However, taking a look at 2019, which is a more typical year since it didn't get the benefit ...
What is Kellogg's food?
Stable products, slow growth. Kellogg is known for various foods such as snacks like crackers, cereal bars, and granola bars, and convenience foods like cereal and frozen waffles. Aside from its namesake brand, these are also sold under well-known names like Cheez-It, Pringles, and Eggo. These consumer staple products have stable demand, ...
Is Kellogg's sales increase anemic?
Kellogg's sales increases have historically been anemic, and while there is a high dividend yield, the board of directors' decision to keep the same level last year doesn't bode well for the company's future.
Does Kellogg have dividends?
While Kellogg had raised dividends every year since 2005, the company halted this streak last year. The dividend yield is a high 3.8%, but the lack of an increase certainly makes a statement about management's view of the company's prospects. For the first three quarters of 2020, Kellogg's operating cash flow was $1.6 billion.
Third-quarter results validate the company's efforts to reshape its portfolio
Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials.
What happened
Shares of Kellogg ( NYSE:K) traded up more than 4% on Tuesday after the cereal and packaged food company reported quarterly sales that came in above expectations. The company said the results are evidence that the work it has done reshaping its portfolio is having the desired effect, and investors, at least on Tuesday, seemed to agree.
So what
Before markets opened on Tuesday, Kellogg reported third-quarter adjusted earnings of $1.03 per share on revenue of $3.37 billion, beating consensus analyst expectations for $0.91 per share in earnings on $3.35 billion in sales.
Now what
Kellogg has been scrambling to reinvent itself as consumer interest in the cereal products that built the company wanes, focusing instead on snack brands including Cheez-Its and Pringles as well as Eggo waffles and Pop-Tarts. In the statement, Cahillane admitted, "we still have work to do," but the executive must be pleased with the progress.
Shares of the packaged-food company declined on a weak outlook for 2020
Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. Follow @tmfbowman
What happened
Shares of Kellogg ( NYSE:K) were stumbling last month after the cereal-maker offered up disappointing guidance in its fourth-quarter earnings report. As a result, the stock finished the month down 11% according to data from S&P Global Market Intelligence.
So what
Kellogg, which owns brands such as Pringles and Cheez-It in addition to its popular cereals, gave up 8.7% on February 6 after its earnings report came out.
Now what
Kellogg stock has held up well during the coronavirus sell-off, which shouldn't be a surprise as the consumer staples company sells a wide variety of shelf-stable foods -- the kind of goods consumers turn to in times of panic. With a dividend yield of 3.6%, Kellogg also offers investors another line of defense.
What happened
Shares of Kellogg Company ( K 2.30% ) stock dropped 5% in early trading Thursday, despite the cereals giant reporting revenues that broadly met expectations and earnings that beat expectations for its fiscal first quarter 2019. As of 2:15 p.m. EDT, Kellogg's decline had moderated to about 3.1%.
So what
That's the good news. The bad news is that, as calculated according to generally accepted accounting principles (GAAP), Kellogg's GAAP earnings were only $0.82 per share and were thus down 35% in comparison to last year's Q1. (Pro forma profits declined 18% -- still not a great result.)
NYSE: K
Kellogg management cited "steadily improving consumption trends across many key markets, categories and brands" for its sales growth but noted that "as expected, higher input costs and effective tax rate contributed to lower earnings."
Now what
As announced in April, Kellogg plans to sell off "selected cookies, fruit snacks, pie crusts, and ice-cream cones" in a deal expected to close in late July. Management updated its guidance to incorporate the likely effect of these divestitures:
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