Report
Erin Lash
EUR 147.86 For Business Accounts Only

Kellogg aims to crack the nut on more cost savings to fuel brand spending and reignite tepid sales.

Second-quarter results suggest that narrow-moat Kellogg’s efforts to improve the efficiency of its cost structure may be gaining traction, as adjusted operating margins expanded just north of 100 basis points to around 15% in the quarter. However, tepid sales (down 2%) persist, and management now sees flat sales growth over the next several years versus our prior outlook calling for low-single-digit top-line gains beginning in fiscal 2017.
As a means to offset these headwinds, Kellogg upped its...
Underlying
Kellogg Company

Kellogg is engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods. The company's principal products are snacks, such as crackers, savory snacks, toaster pastries, cereal bars, granola bars and bites; and convenience foods, such as, ready-to-eat cereals, frozen waffles, veggie foods and noodles. The company's snacks brands are marketed under brands such as Kellogg's, Cheez-It, Pringles, Austin, Parati, and RXBAR. The company's cereals and cereal bars are generally marketed under the Kellogg's name, with some under the Kashi and Bear Naked brands. The company's frozen foods are marketed under the Eggo and Morningstar Farms brands.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Erin Lash

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