PEP - Analysts applaud Kellogg's breakup forecast competition

The Kellogg Company’s (NYSE:K) decision to split up its lagging cereal business from its surging snacks operation is a welcome move, according to initial analyst reactions. For example, Stifel analyst Christopher Growe indicated the split allows growth in snacks to be appreciated while the cereal business seeks to shore up its flagging sales. Meanwhile, the Growe expects the spinoff of the plant-based foods subsidiary makes it more flexible in terms of strategic repositioning and even a possible sale of the business. It is worth noting that Kellogg’s (K) plant-based food entity is profitable as compared to the consistent losses marked by peers like Beyond Meat (BYND). “The breakup will allow each entity to focus on their distinct strategic priorities with financial targets appropriate for the profile of each business,” he wrote. “We believe the announcement is a positive for the stock.” UBS analyst Cody Ross largely reinforced this view, advising

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Analysts applaud Kellogg’s breakup, forecast competition