MDLZ - Kellogg: Nicely Positioned For Financial Improvement

2023-04-10 23:08:30 ET

Summary

• Kellogg manufactures and sells snacks and convenience foods. The company sells its products under various brand names, including Kellogg's, Cheez-It, Pringles, and Nutri-Grain.
• We see some headwinds as the company attempts to transition its brands towards more healthy ingredients as consumer trends change.
• The company has done well to grow its snacks business as consumers increase their demand for convenience foods.
• Kellogg's financial performance is attractive but inferior to peers due to pricing/cost pressures in recent years.
• Kellogg's valuation looks quite attractive, and with sustainable distributions, we consider the stock a soft buy.

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