Kellogg Company (K) | Investment Case

1. Company Snapshot

1.a. Company Description

Kellogg Company, together with its subsidiaries, manufactures and markets snacks and convenience foods.The company operates through four segments: North America, Europe, Latin America, and Asia Middle East Africa.Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles.

The company offers its products under the Kellogg's, Cheez-It, Pringles, Austin, Parati, RXBAR, Kashi, Bear Naked, Eggo, Morningstar Farms, Choco Krispies, Crunchy Nut, Nutri-Grain, Special K, Squares, Zucaritas, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, Be Natural, LCMs, Coco Pops, Frosties, Rice Krispies Squares, Kashi Go, Vector, Incogmeato, Veggitizers, and Gardenburger brand names.It sells its products to retailers through direct sales forces, as well as brokers and distributors.The company was founded in 1906 and is headquartered in Battle Creek, Michigan.

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1.b. Last Insights on K

Kellanova's recent performance was positively driven by several factors. The company's second-quarter revenue edged up 0.3%, showcasing resilience in a challenging environment. A quarterly dividend of $0.58 per share was declared, demonstrating its commitment to shareholder value. Additionally, Kellanova and ADM's regenerative agriculture program, which aims to improve soil health on 120,000 acres, highlights the company's focus on sustainability. Its partnership with Kind Campaign to combat girl-on-girl bullying and promote kindness in schools also underscores its social responsibility efforts.

1.c. Company Highlights

Last Price	83.17
Change Percentage	0.02%
Open	83.19
Previous Close	83.15
Market Cap ( Millions)	28938
Volume	1955390
Year High	83.65
Year Low	76.48
M A 50	82.85
M A 200	81.45

FCF Yield	2.07%
Dividend Yield	2.77%
ROE	31.92%
Debt / Equity	147.51%
Net Debt / EBIDTA	265.48%
Price To Book	6.88
Price Earnings Ratio	22.66
Price To FCF	48.3
Price To sales	2.28
EV / EBITDA	15.54

2. Transcript Summary

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3. NewsRoom

Meet the 2025 Pop-Tarts™ Bowl Edible Elite: Pop-Tarts® Unwraps Rosters for Team Sprinkles and Team Swirls, Featuring an All-New Buff Protein Edible Mascot

Dec -02

Source: prnewswire.com

Treat Yourself to a Crazy Good Coffee - The Original Donut Shop® and Pop-Tarts® Announce New Flavor Innovation Ahead of 2025 Pop-Tarts Bowl

Dec -01

Source: prnewswire.com

The Top 5 CPG Tech Trends Shaping 2026

Dec -01

Source: prnewswire.com

Kellanova Sees Unusually High Options Volume (NYSE:K)

Nov -29

Source: defenseworld.net

Charles Schwab Investment Management Inc. Increases Stock Holdings in Kellanova $K

Nov -28

Source: defenseworld.net

Kellanova is Fast-Tracking Careers with Future-Focused Training

Nov -25

Source: prnewswire.com

Kellanova, Walmart and Indigo Ag Partner to Advance Farmer Prosperity in Arkansas through Regenerative Agriculture

Nov -24

Source: prnewswire.com

Kellanova Unwraps Holiday Magic with Festive Flavors and Packaging

Nov -21

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.84%)

6. Segments

Snacks

Expected Growth: 0.8%

Kellogg's snack segment growth of 0.8% is driven by increasing demand for convenient and portable food options, particularly among millennials and Gen Z consumers. Additionally, the company's focus on innovation, such as the introduction of new flavors and packaging, has helped to drive sales. Furthermore, Kellogg's strong brand portfolio, including Pringles and Cheez-It, has contributed to the segment's growth.

Cereal

Expected Growth: 0.9%

Kellogg's cereal growth driven by increasing demand for convenient breakfast options, rising health consciousness, and expanding distribution channels. Additionally, the company's focus on innovation, such as introducing new flavors and packaging, contributes to the growth. Furthermore, strategic marketing campaigns and partnerships with popular brands also support the segment's growth.

Noodles and Other

Expected Growth: 1.1%

Kellogg's Noodles and Other segment's 1.1% growth is driven by increasing demand for convenient and portable meals, particularly among millennials and Gen Z consumers. Additionally, the company's focus on innovation, such as introducing new flavors and packaging, has helped to drive sales. Furthermore, Kellogg's strategic expansion in emerging markets, particularly in Asia, has also contributed to the segment's growth.

Frozen

Expected Growth: 0.7%

Kellogg's Frozen segment growth of 0.7% is driven by increasing demand for convenient and portable breakfast options, particularly among millennials and Gen Z consumers. Additionally, the company's efforts to revamp its frozen food portfolio with healthier and more premium offerings, such as Eggo waffles and MorningStar Farms, are contributing to the growth.

7. Detailed Products

Corn Flakes

A classic breakfast cereal made from corn, Kellogg's Corn Flakes is a crunchy and tasty start to the day.

Frosted Flakes

A sweet and crunchy breakfast cereal made with corn flakes and frosted with sugar, Kellogg's Frosted Flakes is a fun breakfast option.

Pringles

A stackable and flavorful potato chip snack, Pringles are a popular choice for parties and on-the-go.

Special K

A healthy and nutritious breakfast cereal made with whole grain wheat, Kellogg's Special K is a great option for those looking for a lighter breakfast.

Kellogg's Granola

A crunchy and nutritious breakfast or snack option made with rolled oats and nuts, Kellogg's Granola is a great choice for those on-the-go.

Rice Krispies Treats

A classic marshmallow-based snack made with Rice Krispies cereal, perfect for parties and special occasions.

Kellogg's Crackers

A crunchy and versatile snack or base for appetizers, Kellogg's Crackers are a great addition to any gathering.

8. Kellogg Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Kellogg's cereal products face moderate threat from substitutes such as oatmeal, yogurt, and fruit. However, the company's strong brand recognition and loyalty help mitigate this threat.

Bargaining Power Of Customers

Kellogg's customers have low bargaining power due to the company's strong brand portfolio and wide distribution network. Additionally, the company's products are widely available, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Kellogg's suppliers have moderate bargaining power due to the company's dependence on high-quality raw materials such as corn, wheat, and sugar. However, the company's long-term contracts and relationships with suppliers help mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low in the breakfast cereal industry due to high barriers to entry, including significant capital investments and established distribution networks. Kellogg's strong brand recognition and loyalty also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The breakfast cereal industry is highly competitive, with several established players such as General Mills, Post Holdings, and Quaker Oats. Kellogg's faces intense rivalry from these competitors, which can lead to pricing pressures and advertising wars.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	65.37%
Debt Cost	5.73%
Equity Weight	34.63%
Equity Cost	5.73%
WACC	5.73%
Leverage	188.79%

11. Quality Control: Kellogg Company passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Pilgrim's Pride

A-Score: 6.7/10

Value: 7.6

Growth: 7.3

Quality: 6.9

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

Conagra Brands

A-Score: 6.0/10

Value: 7.9

Growth: 4.6

Quality: 4.8

Yield: 9.0

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

Flowers Foods

A-Score: 5.9/10

Value: 7.2

Growth: 4.7

Quality: 4.9

Yield: 9.0

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

Kellogg

A-Score: 5.8/10

Value: 2.9

Growth: 3.9

Quality: 5.3

Yield: 7.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

Post Holdings

A-Score: 5.2/10

Value: 6.6

Growth: 7.6

Quality: 4.0

Yield: 0.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

Campbell Soup

A-Score: 4.9/10

Value: 5.9

Growth: 3.3

Quality: 4.7

Yield: 7.0

Momentum: 0.5

Volatility: 8.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

5.75%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.73%

Kellogg Company - US4878361082

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on K

1.c. Company Highlights

Higher Yield

Lower Growth

Less Volatile

Earnings Beats

Revenues Beats

Average Yield

Expensive

Medium Volatility

Strong Momentum

Earnings Miss

Revenues Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.84%)

6. Segments

Snacks

Expected Growth: 0.8%

Cereal

Expected Growth: 0.9%

Noodles and Other

Expected Growth: 1.1%

Frozen

Expected Growth: 0.7%

7. Detailed Products

Corn Flakes

Frosted Flakes

Pringles

Special K

Kellogg's Granola

Rice Krispies Treats

Kellogg's Crackers

8. Kellogg Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Kellogg Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

83.17$

Current Price

83.17$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA