PEP - Kellanova: Not Taking A Bite Of The Snack Business Yet
2024-06-12 16:52:11 ET
Summary
- Kellanova, split from former Kellogg's Company, is a $13 billion business focusing on strong snack brands like Pringles and Pop-Tarts.
- Like all consumer packing companies, it struggled with inflationary pressures, yet it saw a modest recovery in sales and profits, with a focus on improving growth composition.
- Shares trading at fair valuations, with potential for earnings to improve to $4 per share in the future, as positioning concerns leave me holding a neutral stance.
In the fall of last year, the former Kellogg's Company split up the business in two: Kellanova ( K ) and WK Kellogg Co (KLG) . The latter comprised a nearly $3 billion and somewhat troubled cereal business, and has been spun off by Kellanova as the remaining entity to improve the growth profile of the remaining $13 billion business....
Kellanova: Not Taking A Bite Of The Snack Business Yet