K

Kellogg Co

Consumer


Presented:06/29/2017
Price:$68.69
Cap:$24.32B
Current Price:$80.93
Cap:$27.90B

Presented

Date06/29/2017
Price$68.69
Market Cap$24.32B
Ent Value$33.40B
P/E Ratio31.6x
Book Value$5.73
Div Yield2.99%
Shares O/S354.00M
Ave Daily Vol2,223,700
Short IntN/A

Current

Price$80.93
Market Cap$27.90B
Kellogg Co. engages in the manufacturing, marketing, and distribution of cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, and meat alternatives. It operates through the following segments: U.S. Morning Foods, U.S. Snacks, U.S. Specialty, North America Other, Europe, Latin America, and Asia Pacific. The U.S. Morning Foods segment includes cereal, toaster pastries, health and wellness bars, and beverages. The U.S. Snacks segment offers cookies, crackers, cereal bars, savory snacks, and fruit-flavored snacks. The U.S. Specialty segment represents food away from home channels, including food service, convenience, vending, Girl Scouts, and food manufacturing. The North America Other segment includes U.S. Frozen, Kashi, and Canada operating segments. The Europe segment consists of European countries. The Latin America segment comprises of Central and South America and includes Mexico. The Asia Pacific segment compose of Sub-Saharan Africa, Australia, and Asian and Pacific markets. The company was founded by Will Keith Kellogg in 1906 and is located in Battle Creek, MI.

Publicly traded companies mentioned herein: Kellogg Company (K), Mondelez International Inc (MDLZ)

Highlights

The presenter is short shares of Kellogg (K), stating that the business is in the midst of a decline with accelerating headwinds. K’s cost cutting initiatives have not yielded the hoped-for results, and K could be running out of options to combat secular headwinds. The presenter sees some near-term catalysts like K’s direct store delivery transition and some accounting issues that could pressure the stock. The presenter believes K will trade down to $60 by the end of this year, from $70 today. In an extreme scenario, K shares could decline to as low as $45.

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Idea Discussion

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