Kellanova (K - Free Report) , previously known as Kellogg Company, concludes the separation of its North American cereal business, as unveiled before. The move led to the formation of two independent, publicly traded companies, WK Kellogg Co (KLG - Free Report) and Kellanova. The separation was reached via the distribution of all WK Kellogg Co shares to Kellanova common stock shareholders.
The separation reinforces Kellanova’s commitment to becoming the best-performing snacks-led powerhouse globally. The company’s portfolio boasts iconic brands like Pringles, Pop-Tarts, Cheez-It, Kellogg's Rice Krispies Treats, Nutri-Grain, Eggo, RXBAR, MorningStar Farms, Incogmeato, and Gardenburger. It also consists of international cereal brands like Kellogg's, Frosties and Zucaritas to name a few. The Zacks Rank #3 (Hold) company expects to generate net sales of $13.4-13.6 billion in 2024.
Kellanova is committed to delivering growth on increased operational focus, fit-for-purpose strategy and resource allocation. Management expects to enhance profitability through operating leverage, widened scale across emerging markets, productivity and revenue growth management. Although the company’s corporate name has altered to Kellanova, its products around the globe will continue to have the Kellogg's brand.
WK Kellogg Co will focus on ready-to-eat cereal across the U.S., Canada, and Caribbean. Management earlier highlighted that the unit will house a portfolio of leading brands like Kellogg's, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked.
WK Kellogg Co is likely to generate 2024 net sales of about $2.7 billion and an adjusted EBITDA in the band of roughly $255-265 million. In the upcoming three years, WK Kellogg Co anticipates achieving a 500-basis point improvement in its adjusted EBITDA margins by 2026-end.
The separation will likely position Kellanova and WK Kellogg Co to unlock their full standalone potential. The move allows both companies to focus on their well-defined strategic priorities and execute greater agility and operational flexibility while creating distinctive corporate cultures.
Appetizing Food Picks
MGP Ingredients (MGPI - Free Report) , which produces and markets ingredients and distillery products, sports a Zacks Rank #1 (Strong Buy). MGPI has a trailing four-quarter earnings surprise of 18% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MGP Ingredients’ current financial year sales and earnings per share (EPS) suggests growth of 5.8% and 10.4%, respectively, from the corresponding year-ago reported figures.
Flowers Foods (FLO - Free Report) emphasizes providing high-quality baked items. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Flowers Foods’ current financial year sales suggests growth of 6.7% from the year-ago period’s actuals. FLO has a trailing four-quarter earnings surprise of 7.6% on average.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Kellanova (K - Free Report) , previously known as Kellogg Company, concludes the separation of its North American cereal business, as unveiled before. The move led to the formation of two independent, publicly traded companies, WK Kellogg Co (KLG - Free Report) and Kellanova. The separation was reached via the distribution of all WK Kellogg Co shares to Kellanova common stock shareholders.
The separation reinforces Kellanova’s commitment to becoming the best-performing snacks-led powerhouse globally. The company’s portfolio boasts iconic brands like Pringles, Pop-Tarts, Cheez-It, Kellogg's Rice Krispies Treats, Nutri-Grain, Eggo, RXBAR, MorningStar Farms, Incogmeato, and Gardenburger. It also consists of international cereal brands like Kellogg's, Frosties and Zucaritas to name a few. The Zacks Rank #3 (Hold) company expects to generate net sales of $13.4-13.6 billion in 2024.
Kellanova is committed to delivering growth on increased operational focus, fit-for-purpose strategy and resource allocation. Management expects to enhance profitability through operating leverage, widened scale across emerging markets, productivity and revenue growth management. Although the company’s corporate name has altered to Kellanova, its products around the globe will continue to have the Kellogg's brand.
WK Kellogg Co will focus on ready-to-eat cereal across the U.S., Canada, and Caribbean. Management earlier highlighted that the unit will house a portfolio of leading brands like Kellogg's, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked.
WK Kellogg Co is likely to generate 2024 net sales of about $2.7 billion and an adjusted EBITDA in the band of roughly $255-265 million. In the upcoming three years, WK Kellogg Co anticipates achieving a 500-basis point improvement in its adjusted EBITDA margins by 2026-end.
The separation will likely position Kellanova and WK Kellogg Co to unlock their full standalone potential. The move allows both companies to focus on their well-defined strategic priorities and execute greater agility and operational flexibility while creating distinctive corporate cultures.
Appetizing Food Picks
MGP Ingredients (MGPI - Free Report) , which produces and markets ingredients and distillery products, sports a Zacks Rank #1 (Strong Buy). MGPI has a trailing four-quarter earnings surprise of 18% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MGP Ingredients’ current financial year sales and earnings per share (EPS) suggests growth of 5.8% and 10.4%, respectively, from the corresponding year-ago reported figures.
Flowers Foods (FLO - Free Report) emphasizes providing high-quality baked items. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Flowers Foods’ current financial year sales suggests growth of 6.7% from the year-ago period’s actuals. FLO has a trailing four-quarter earnings surprise of 7.6% on average.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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