Topic: How To Invest

Q: I have done well with your advice over the years. What do you think of Kellogg and its plan to split up. Is it a buy? Thanks.

Article Excerpt

A: Kellogg Company, $72.22, symbol K on New York, (Shares outstanding: 340.1 million; Market cap: $24.2 billion; www.kelloggs.com), is a major maker of food products in North America and the rest of the world. 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. These products are manufactured in 21 countries and marketed in more than 180 countries. The company mainly sells to retailers through direct salesforces for resale to consumers. In 2019, Kellogg sharpened its focus when it sold select businesses concentrated on cookies, fruit and fruit-flavoured snacks, pie crusts, and ice cream cone to Italy’s Ferrero Group for $1.3 billion. Kellogg’s remaining snack foods are marketed under brands such as Kellogg’s, Cheez-It, Pringles, Austin, Parati, and RXBAR. Its cereals and cereal bars are generally marketed under the Kellogg’s name, with some under the Kashi and Bear Naked brands. Frozen foods…