KELLOGGS SEALS A SWEET DEAL

Mr. Bullish
Jul 11
2 min read

🥣 KELLOGG JUST GOT A SWEET DEAL 🍫📈 — HERE’S WHAT YOU NEED TO KNOW

You might know Kellogg as the brand behind your childhood favs — Pop-Tarts, Frosted Flakes, and Rice Krispies — but something HUGE just happened in the business world. 👀

🚨 Quick Recap: What Just Happened?

✅ Kellogg split into two companies:
- Kellanova (K) – snacks like Pringles, Cheez-It, Pop-Tarts
- WK Kellogg Co (KLG) – cereal brands like Corn Flakes, Special K
🍫 Ferrero (yes, the chocolate company behind Nutella & Ferrero Rocher) just bought WK Kellogg Co (KLG)!
📈 As a result? KLG stock jumped 30% — that’s wild for a company selling cereal!

🥣 So… What’s the Big Deal?

This move is exciting for a few reasons:

Ferrero wants to grow in the U.S. 🗽Buying Kellogg’s cereal biz helps them expand beyond candy & chocolate.
Investors love clarity 🧠Splitting Kellogg into 2 clear businesses (snacks vs. cereal) makes it easier for investors to value them.
Consumer staples = safe haven 🛡️Even when the market dips, people still buy cereal, snacks, and chocolate. That’s why consumer staples stocks usually hold up well during corrections.

🔍 Let’s Talk Fundamentals

💼 Kellanova (K) – The Snack King

Focus: Global snacks & frozen foods
Latest earnings: Beat expectations ✅
- Revenue up 📊
- Strong growth in international snack sales 🌍
Margins improving due to cost-cutting
Analysts say: "Solid long-term pick" for stable growth + dividends 💸

🥣 WK Kellogg Co (KLG) – The Cereal OG

Focus: U.S.-based cereals
Struggles: Declining cereal demand in recent years 😬
BUT now backed by Ferrero's $$$ and global reach 🌐
Analysts say: “Turnaround potential” — could go from boring to booming

🧠 What Analysts Are Saying

Bullish on Ferrero's move: They see long-term potential in revitalizing the cereal brand 💥
Cautious optimism on KLG: Needs execution, but the brand power is there 📶
Kellanova seen as more stable and diversified 🌎

📉 How Do These Stocks Act During Market Corrections?

Great question!

✅ Consumer staples like cereal, snacks, and household goods tend to hold value when markets get rocky. Why? Because people still need to eat and shop, even during recessions.

So while tech and meme stocks might crash 📉, food stocks usually stay steady or even rise 🔼.