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Kellogg Company (K)

  • Jul. 2, 2014, 10:15 AM
    • Food companies should get ahead of the curve by creating gluten-free children's food in the U.S., says Mintel.
    • The market research firm notes a gluten-free trend in Europe which started with infant food has quickly moved into children's food.
    • Kellogg (K) is already in the game with a gluten-free version of Rice Krispies which has generating $9.2M in sales in two years.
    • Related stocks: POST, SJM, GIS, CPB, KRFT, MDLZ, PF.
  • Jun. 30, 2014, 1:04 PM
    • A measure of corn inventories came in higher than expected today sending corn futures to their sharpest drop in close to a year.
    • The USDA says inventories were 3.854B bushels on June 1 vs. 3.723B forecast and 2.766B a year ago.
    • High corn prices has been a concern in the food sector (GIS, K, POST, KO, PEP, PPC, TSN, CPB, SJM) where sellers have warned on their ability to pass on the higher costs on to consumers.
    • USDA crop report
    • Related EFTs: CORN, JJG, GRU
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  • Jun. 25, 2014, 11:46 AM
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  • Jun. 9, 2014, 1:46 PM
    • Data from NPD Group indicates the average American spends 12 minutes a day on breakfast.
    • The highly-contested daypart pits major cereal sellers such as Kellogg (K), Post Holding (POST), and General Mills (GIS) against fast-food chains like McDonald's (MCD), Starbucks (SBUX), Taco Bell (YUM), and Dunkin' Brands (DNKN).
    • Convenience-store chains are also a major factor as C-stores such as Circle K (ANCUF), 7-11, Pantry (PTRY), BP Connect (BP), On the Run (XOM), Speedway America (MPC), Kwik Shop (KR), and Qwiktrip continue to innovate and show some positive growth trends.
    • What to watch: Analysis from Edward D. Jones suggests consumers tend to stay with their routines. The read is that companies in the breakfast business need to compete for market share within their segment - instead of trying to change consumer behavior. Taco Bell is utilizing that strategy with its marketing message which paints McDonald's as old-fashioned.
  • Jun. 3, 2014, 3:28 PM
    • A takeover of Kellogg (K -0.1%) is no easy feat after shares rose 8% over the last month on merger buzz, notes The New York Times.
    • The company carries around $7.4B in debt which limits the attraction of a straight leveraged buyout.
    • If a buyer wants to snap up the consumer products company it might have to utilize the same strategy that Warren Buffett did with his Heinz acquisition in lining up a P-E partner with a patient long-term vision.
  • May. 28, 2014, 11:21 AM
    • General Mills (GIS +0.1%) will become one of the first major cereal producers to leap into the protein craze with Cheerios Protein.
    • The new product will be loaded with more than 3x the protein of a traditional breakfast cereal.
    • Kellogg (K +0.2%) already has a Special K variety with protein available at stores.
    • The big pictures: Cereal sales in the U.S. have suffered with ready-to-eat options and yogurt taking market share in the daypart.
  • May. 27, 2014, 7:28 AM
    • A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.
    • For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).
    • The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.
    • Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.
    • Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG
  • May. 20, 2014, 7:15 PM
    • The U.S. regulator approves advantame, the sixth sugar substitute to get the agency's blessing. It can used as a tabletop sweetener or as an ingredient in cooking by virtue of its stability at high temperatures.
    • The approval was based on the results of 37 animal and human studies submitted by the manufacturer.
    • Advantame is chemically similar to aspartame (Equal). People with the genetic disorder phenylketonuria have difficulty metabolizing phenylalanine, a component of both aspartame and advantame. Food containing aspartame must be labeled as such. The amount of advantame needed to achieve a similar level of sweetness as aspartame is much less so no special labeling will be required.
    • The last sweetener cleared by the FDA was neotame (Newtame) in 2002.
    • Just a few related tickers: (PG) (PEP) (KO) (GIS) (K)
  • May. 16, 2014, 10:51 AM
    • Kellogg (K -0.1%) says it has 34 new products arriving on grocery store shelves over the next few weeks.
    • New products in the categories of cookies, crackers, frozen breakfast, and snacks are on tap - while breakfast cereal will be a major focus.
    • Kellogg's peanut butter cereal will feature real Jif peanut butter and Rice Krispies Multi-Grain Shapes is aimed as a healthy alternative to sugary cereals.
  • May. 12, 2014, 7:13 AM
    • A merger between Hillshire Brands and Pinnacle Foods could kickstart the consolidation frenzy in the food industry analysts have been forecasting.
    • The sector has been tapped to see a high rate of mergers and buyouts due to the significant synergies that could be unleashed through combinations.
    • On watch: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K, CAG
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  • May. 1, 2014, 8:03 AM
    • Kellogg (K): Q1 EPS of $1.01 beats by $0.04.
    • Revenue of $3.74B (-3.1% Y/Y) misses by $80M.
    • Press Release
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  • Apr. 25, 2014, 9:03 AM
    • Kellogg Company (K) declares $0.46/share quarterly dividend, in line with previous.
    • Forward yield 2.77%
    • Payable June 16; for shareholders of record June 2; ex-div May 29.
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  • Apr. 15, 2014, 9:48 AM
  • Apr. 10, 2014, 9:02 AM
  • Apr. 7, 2014, 11:01 AM
    • A number of food stocks are moving higher on talk of consolidation in the sector.
    • Kellogg (K +1.7%) is front and center of most of the chatter, while General Mills (GIS +1.4%), Pinnacle Foods (PF +0.8%), and J.M. Smucker (SJM +0.7%) are also in the mix.
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  • Mar. 31, 2014, 1:58 PM
    • A survey from the Department of Agriculture indicates that farmers in the U.S. plan to plant the lowest acreage of corn in four years.
    • The March report on corn already indicated that supply was tighter than forecast.
    • Higher corn prices are sometimes absorbed by food sellers and restaurant chains if consumer spending trends are weak.
    • Corn futures charts
    • Related stocks: GIS, K, POST, KO, PEP, PPC, TSN, CPB, SJM
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Company Description
Kellogg Co and its subsidiaries are involved in the manufacture and marketing of ready-to-eat cereal and convenience foods.