|Bid||57.45 x 1300|
|Ask||58.49 x 900|
|Day's Range||57.72 - 58.59|
|52 Week Range||53.14 - 74.98|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||15.26|
|Earnings Date||May 2, 2019|
|Forward Dividend & Yield||2.24 (3.90%)|
|1y Target Est||58.88|
Kellogg's to sell Keebler and Famous Amos to Nutella maker Ferrero. Yahoo Finance's Adam Shapiro, Julie Hyman, and Sibile Marcellus discuss.
Earnings season is underway, and while it's been far from disastrous, it's not been a cause for enormous celebration either. Goldman Sachs (NYSE:GS), J B Hunt Transport Services (NASDAQ:JBHT) and Lennar (NYSE:LEN) all three missed estimates of one form or another. They're fairly high-profile names from a broad spectrum of industries that may portend more disappointments.Not every stock is hanging by a thread though. There are still stocks to buy that are well-positioned for market-beating growth driven by solid earnings growth. Granted, not all of these companies are media darlings or fan favorites, but that's ok. Sometimes it's the lesser-followed tickers that end up being most rewarding. * 7 Stocks That Can Outperform for Years With that as the backdrop, here's a rundown of the top then S&P 500 stocks that offer the best chance of sidestepping an earnings-driven headwind. Some may be a bit off of the beaten path, but each of them bring better than average upside potential to the table.InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Parcel Service (UPS)To be clear, the first quarter profit UPS (NYSE:UPS) is expected to report just a few days from now should be lower than the year-ago bottom line. Indeed, the full-year's earnings are projected to drop as well. Between rising fuel costs, Amazon.com (NASDAQ:AMZN) starting to handle more of its own delivery work and the perception of a general economic slowdown crimping demand for shipping services, investors are understandably concerned.Those same investors, however, may have overshot their target. The pros are calling for an earnings rebound next year on the same steady sales growth UPS has consistently driven. But, at a forward-looking P/E of 13.8, UPS stock is a bargain.The clincher: Built on recently-achieved efficiencies, UPS is about to launch a major pricing overhaul that customers and non-customers should respond to. Rockwell Automation (ROK)Investors looking for bargain-priced S&P 500 stocks won't think much of Rockwell Automation (NYSE:ROK). It's anything but cheap, looking forward or looking backward.ROK stock's never been particularly cheap though. And it doesn't have to be. Regardless of ratios, the market may be underestimating the company's future. * 7 Dental Stocks to Buy That Will Make You Smile This year could prove to be pivotal one for industrial manufacturing. 5G connectivity is officially here, and factory owners are finally starting to embrace the upside of automation. It's a trend that plays right into the hand Rockwell Automation has been holding for a while now. ROK specializes in the melding of technology, artificial intelligence, manufacturing and software. Any sort of improvement in the global trade landscape could be just the nudge Rockwell needs. Hewlett Packard Enterprise (HPE)HP Enterprise (NYSE:HPE) had a pretty rough 2017, and never really worked its way out of that rut. It's not especially well-deserved weakness though.Hewlett Packard Enterprise is, of course, the business-oriented half of the split the old HP went through in late-2015. The stock got off to a good start, but investors largely viewed the institutional half of the company as missing out on the explosion of cloud computing.That's not actually been the case though. HPE is arguably a pace-setter in hybrid cloud, with the company recently announcing partnerships with Alphabet (NASDAQ:GOOGL) division Google to simplify the use of hybrid cloud solutions. HPE stock is also priced at a very affordable 9.5x forward earnings. Kellogg Company (K)Don't look now, but Kellogg (NYSE:K) shares may be on the mend after being rocked in 2018.Granted, most food stocks are doing the same. They all took big hits in 2018 on rising delivery costs as well as rising commodity costs, causing a relatively big hit to relatively thin margins. Shipping costs are still frothy, but the industry has at least gotten a grip on its inefficiencies. For Kellogg, that means shedding established brands including Keebler and Famous Amos. * 3 Solar Stocks to Buy for a New Day in Solar Energy More important, the market is responding bullishly. After hitting bottom in March, K stock has broken above a key falling resistance line and just this week has pushed its way above the 100-day moving average line. Gap (GPS)Yes, the so-called retail apocalypse is still in full swing, and yes, the trendy apparel sliver of the industry has been hit especially hard. Gap (NYSE:GPS) hasn't been an exception to that norm.Gap, however, has also been hit unfairly hard.It was brutalized in 2015 when the scales really started to tip in favor of other fashion looks, and just when it looked like the worst was over in 2017, the bears growled again in 2018. The Gap, along with its other brands like Old Navy, Banana Republic and Janie and Jack, just aren't the same draw they used to me when mall-shopping was in its prime and consumers cared about sporting a certain look.Nevertheless, GPS stock appears to have made a hard bottom at $24.00, and is not testing the waters of another rebound attempt. A better-paced move above the $200-day moving average line at $26.90 could be just the catalyst the bulls need. Intel (INTC)Yes, rival Advanced Micro Devices (NASDAQ:AMD) mostly caught Intel (NASDAQ:INTC) two years ago when it unveiled its Ryzen processor that matched up with Intel's CPUs at a fraction of the cost. In the meantime, the discovery of a couple different security flaws in Intel's chips dented the computing icon's reputation.Rumors of Intel's death, however, have been greatly exaggerated.Reality: Yes, Intel got lazy, and sloppy, assuming it couldn't be dethroned. It responded to competitive threats and gaffes with full force though, and the 30% gain logged since October of last year speaks volumes about the market's perception of that effort. * 5 Fast Food Stocks That Are Cooking With Fire As big as that gain is though, INTC stock is still cheap relative to most other S&P 500 stocks, priced at only 12 times its projected 2020 earnings. Omnicom Group (OMC)Omnicom Group (NYSE:OMC), for the unfamiliar, is a media, marketing and communications company. Specifically, Omnicom has mastered the art and science of combining online and offline efforts to maximize client sales. It's not easy.More important, it's a service that will only see demand grow going forward. While things should be slow this year for Omnicom, the company is expected to get back on a growth track next year.The shape of the OMC chart suggests investors are quietly maneuvering in anticipation of a breakout. They may be unconsciously planning such a breakout, in fact. The move above a couple of different technical ceilings near $78 has been a little overzealous and leaves the stock ripe for a small pullback. The bulls, however, may have just tipped their very bullish hand. Colgate-Palmolive (CL)Last year was an especially tough one for Colgate-Palmolive (NYSE:CL), and by extension, for its shareholders. From high to low, CL stock fell a total of 24%, for a myriad of reasons. Broadly speaking though, its products and brands simply fell out of favor as consumers opted for alternatives.Some observers don't expect 2019 to be any better, calling for more slowing of growth. * 7 Stocks That Can Outperform for Years The overall market, however, thinks differently. After making a double bottom last year around $57, CL stock has managed to fight its way above September's high around $68.30. And, there's still room to keep running before the early 2018 peak is challenged. Twitter (TWTR)There was a time not that long ago when it wasn't clear Twitter (NYSE:TWTR) would survive, unable to turn a profit. The microblogging platform has proven those critics wrong though, swinging to a profit of 14 cents per share in 2014 and growing its bottom line almost every year since. This year's expected bottom line is 86 cents per share, but analysts have been underestimating the company's profits.The stock's been rewarding too, though not as consistent. Namely, after a big rally in 2017 and early 2018, TWTR stock tumbled. Even then, however, there's been a bullish tone evident in the aftermath. A horizontal ceiling has taken shape around $35, but after forming a bottom near $26 since October, the stock's started to make higher lows. It appears the buyers are anticipating a breakout thrust, but are still waiting for the right catalyst. T. Rowe Price Group (TROW)Finally, add T. Rowe Price Group (NASDAQ:TROW) to your list of S&P 500 stocks that may well shrug off earnings-minded marketwide weakness. The mutual fund company may post lethargic results this year, but investors are already looking ahead to next year's projected revenue growth of 4.7% and earnings improving from 2019's projection of $7.05 per share to 2020's 7.42. * 5 Stocks to Profit From (Legal) Insider Buying Signals The shape of the TROW stock chart confirms this optimism. After taking on too much water in 2018, sending the stock from a high near $124 to a low near $85, investors have pushed T. Rowe shares in a straight line all the way back to $105. There's plenty more room to reclaim, and the trend is loaded with momentum.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post 10 S&P 500 Stocks to Weather the Earnings Storm appeared first on InvestorPlace.
Shares of Kellogg (NYSE:K) haven't been "Grrreat" for a long time, declining more than 13% over the last five years as demand for its core ready-to-eat cereal business has failed to "Snap, Crackle & Pop" as consumers increasingly ditch processed foods for products they consider to be "fresh and natural." K stock now sits a couple of bucks above its 52-week low.Nonetheless, there are reasons for investors to be optimistic about the Battle Creek, Mich.-based company. Cereal Sales Less SoggyFor one thing, the six core cereal brands -- Frosted Flakes, Froot Loops, Rice Krispies, Special K, Mini-Wheats and Raisin Bran -- are holding their own in a declining market. According to Kellogg, the brands "collectively bounced back to share growth in 2018." Its Kashi natural cereal brand, which has withered for years, also is on the rise. Bear Naked has become the country's top granola brand, and Eggo frozen waffles also are rebounding.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Dow Jones Stocks Holding the Blue Chip Index Back "Consumers are rediscovering the benefits of cereal brands like Raisin Bran and Mini-Wheats," said Kellogg CEO Steve Cahillane during the company's latest earnings conference call in early February."We've invested in and improved our innovation capabilities and pipeline, and in 2019 we have our strongest innovation pipeline in years, much of which hit the shelves in January and are off to strong starts.'' Selling Crumbling Cookie BusinessesDeals Kellogg has made in recent years, including its $420 million purchase of a stake in Tolaram Africa Foods and its $600 million acquisition of protein bar maker RXBar, are starting to pay off. The company also is benefiting from the reorganization of its North American division and its increased investment in e-commerce. The food maker also aims to boost its business in Latin America, Asia, Africa and Europe.Earlier this month, Kellogg announced plans to sell its cookie, fruit snacks, pie crust, and ice cream cones businesses to Italy's Ferrero for $1.3 billion. It was a smart move given Keebler's weak number-two position in cookies and number-three position in fruit snacks. Both businesses have performed poorly of late. Sales of Kellogg's cookies, including Famous Amos, fell 5.4% in 2018 compared with 2017. The company's fruit snacks fell 20.1% on a year-over-year basis.The company is still keen on its snacks business thanks to brands like Cheez-Its, Pringles, Rice Krispy Treats and Pop-Tarts. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Shares of K stock have barely budged this year and Wall Street analysts aren't optimistic that any rebound is near. The average price target on the stock is $59, about 3% higher than where it trades now. Kellogg stock guidance calls for 2019 sales to rise 3% to 4% and for organic growth to return. EPS will fall 5% to 7% for the year as it continues to increase spending to grow its business.I recommend K stock for long-term investors because management is doing all the right things to reduce complexity, cut debt and position the company for future growth, which will come gradually. K's dividend also yields a rate of 3.98%, well above the average for the S&P 500 index which is 1.86%.As of this writing, the author did not own any shares of K stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post For Long-Term Investors, Kellogg Stock Looks Mighty Tasty appeared first on InvestorPlace.
The bears balked again, ceding control back over to the bulls on Wednesday … not that they did much with it. The S&P 500 mustered a gain of 0.35% yesterday, but hasn't made any real net progress since late last week. Volume, already trending lower, was downright pathetic, with few traders interested in making a commitment.Bed Bath & Beyond (NASDAQ:BBBY) led the way, gaining more than 5% headed into its post-close earnings report. The stock gave up all of that gain and more in after-hours action though, following an unexpected quarterly loss. First Solar (NASDAQ:FSLR) logged an even bigger regular-hours gain though, advancing more than 8% after Goldman Sachs added it to its conviction list.Lyft (NASDAQ:LYFT), on the flipside, was holding the market back, as shares of the newly minted ride-hailing stock fell more than 10% on the heels of news that rival Uber would soon be going public as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNone of those names are setting up great trading moves headed into today's action though. Rather, it's the stock charts of Kellogg Company (NYSE:K), DISH Network (NASDAQ:DISH) and American Airlines Group (NASDAQ:AAL) that are worth a closer look. Here's what to look for. American Airlines Group (AAL)Last year was a tough one for American Airlines Group shareholders. The stock was in a freefall for the better part of 2018, and though we've seen flashes of bullishness since October, nothing has actually shaken the stock out of its downtrend. * 8 Risky Stocks to Watch as Earnings Season Kicks Off The prospect for a bullish reversal, however, hasn't been better at any time in the past year and a half than it is now. There's just a little more work that needs to be done. Click to Enlarge • The first hurdle that needs to be cleared is the falling resistance line that touches all the major peaks going back to September. It's plotted in yellow on both stock charts.• The 200-day moving average line, plotted in white, may also serve as at least a temporary ceiling.• Though the bulls need to secure more ground before the rally takes root, note that it has stopped making lower lows. A triple-bottom near $30 has been formed, which is a precursor to higher lows. Kellogg Company (K)Most stocks were hit hard in the latter part of last year. Kellogg Company was no exception. All told, it lost 28% of its value between September's high and December's low.Matters have quietly started to improve though, and done so in the right way. One more good day could decidedly lock in place all the bullish legwork that's been put on the table so far, and light a nice fire under the rebound effort. Click to Enlarge • For the better part of late last year and early this year, a falling resistance line plotted in yellow on the daily chart continued to drive lower highs. That technical hurdle was clear last month.• In the meantime, resistance at $57.80 has taken shape. That's where K stock has peaked several times since late March, and it's near where the gray 100-day moving average is now.• Though erratic, we've seen some major bullish volume days since the latter half of March. There are some willing bulls out there.• Zooming out to the weekly chart, we simultaneously see the Chaikin line's moved back above the zero line and a fresh MACD buy signal. We don't see either serve up fakeout signals very often for Kellogg Company shares. DISH Network (DISH)With nothing more than a quick glance, DISH Network could be seen as dishing out the same basic volatility it's been dishing out for the past several months. And, maybe that's all it is.A longer, more thoughtful look at the charts of DISH, however, suggests there's something far more constructive underway than we've seen in months. Although it's still entirely likely we could see sizable pullbacks from here, the bigger-picture tide appears to have taken a nice turn for the better. Click to Enlarge• As of right now, and since last month, DISH Network stock is above the white 200-day moving average line. That's a first since the middle of 2017.• DISH stock is also above horizontal resistance around $34, plotted with a red dashed line on the daily chart. The stock peaked there a couple of times before now, but it wasn't a problem last week.• The new convergence of all the key moving average lines is about to set up a cross of the purple 50-day moving average above the 200-day line. These so-called "golden crosses" are a big hint of a tidal change.• If the rally can get and keep traction and break above the ceiling near $37, there's no well-established resistance until you get back to 2017's high around $66.50.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Best Dividend Stocks to Buy for Every Investor * 7 Catalysts That Will Send Marijuana Stocks Soaring in 2019 * 8 Risky Stocks to Watch as Earnings Season Kicks Off Compare Brokers The post 3 Big Stock Charts for Thursday: DISH Network, American Airlines Group and Kellogg appeared first on InvestorPlace.
Why Credit Suisse Upgraded J.M. Smucker StockJ.M. Smucker upgraded to a “neutral” The J.M. Smucker Company (SJM) stock was up ~1.3% in morning trading on April 8 after Credit Suisse upgraded its rating owing to its improved earnings prospects.
Kellogg (K) grapples with rising costs and weaknesses in the U.S snacking and cereal categories. The divestiture of certain businesses to Ferrero Group is likely to be a drag.
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! Over the past 10 years Kellogg Company (NYSE:K) has grown its dividend payouts from $1.36 to $2.24. With a market cap of US$2...
BATTLE CREEK, Mich. , April 5, 2019 /PRNewswire/ -- Kellogg Company (NYSE: K) plans to issue its 2019 first quarter financial results at approximately 8:00 am EDT on Thursday , May 2, 2019. The following ...
From cookies to fruit snacks and pie crusts, the consumer-goods giant just divested some of its biggest products. Here's what investors need to know.
Kellogg Company (NYSE: K ) on Monday announced it's selling Keebler and several other businesses to the Ferrero Group for $1.3 billion. The Analyst Morgan Stanley's Dara Mohsenian maintains an Equal-weight ...
Kellogg (NYSE:K) is getting out of the cookie business, selling it to privately held Ferrero for $1.3 billion. Ferrero, an Italian company, is best known as the maker of Nutella and reportedly beat out Hostess for the brands.Source: Shutterstock Kellogg has been trying to sell its cookie brands, which include Keebler's and Famous Amos, since November. It says that the cookies had sales of $900 million last year and earned just $75 million in profit. Shares fell 2.4% on the news but recovered 50 basis points overnight to open April 2 at about $56.30.The agreement is another defeat for the "center of the grocery store," where shelf-stable, branded food products are being squeezed out by fresh or pre-made options at the sides of the store.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Best Stocks to Buy for an April Rally There are six huge bakeries involved in the sale, but what few reporters are noting is that the deal includes a Louisville, Kentucky factory that makes Girl Scout cookies. The Girl Scout LessonWhile mainline cookies like Keebler are losing their share, the Girl Scouts have built a cookie empire, with estimated revenue of $800 million. To put it in perspective, that's more than Mondelez' (NASDAQ:MDLZ) brings in from Oreo's.The Girl Scouts have become "Big Cookie" by tying good works to the brand. They're not the only group giving new life to old categories through charity. Newman's Own, launched by the late actor Paul Newman in the 1980s, has donated over $500 million to charity over the years, selling everything from dog food to spaghetti sauce to (yes) cookies. I participated in the Girl Scout phenomenon when our daughter was younger, and people who would hesitate to spend $2 in a store thought nothing of forking over $4 cash for cookies they wouldn't eat for a month. When a neighbor came by recently, I learned the Scouts now do sales in front of stores, take credit cards and even have an app, but the heart of the pitch is still cute kids looking to fund camps. The Cookie CrumblesFor Kellogg's, the sale represents a giant failure. The company paid $3.86 billion for the brands back in 2001. Getting out of cookies will bring Kellogg's business below the level it was at in 2017, when the company earned $1.25 billion, $3.65 per share, on revenue of $12.9 billion. The 2018 results were net income of $1.34 billion, $3.85 per share, and revenue of $13.55 billion.The $1.3 billion, due in July, will reduce Kellogg's debt level, which was $8.2 billion at the end of 2018, against assets of $17.78 billion.What's left is almost entirely a cereal company, sold in the center of the store, except for Eggo frozen waffles. Of 21 analysts following the stock, only four call it a buy, while the majority call it a hold.While Kellogg's was founded around corn flakes as a health food, in the early 20th century, it has found itself on the defensive in recent years over how much salt and sugar is in its products. It recently gave in on a U.K. scheme to redesign packaging based on salt and sugar content but is resisting this in other markets. The Bottom LineKellogg is a very tired company in a very tired category. Like Campbell Soup (NYSE:CPB) and Kraft-Heinz (NYSE:KHC), it's stuck in the shrinking center of the grocery aisle, where competition from store brands is heavy and overall sales are falling.A recession might bring some sales back, or the company could be sold. Both these outcomes are unlikely, as is the chance I'll be buying any Kellogg's stock.You think the Girl Scouts might want to sell cereal? Naaah.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: A Close Race at the Front * 15 Stocks to Buy Leading the Financial Charge * 7 Stocks From Around the World That Beat U.S. Stocks Compare Brokers The post Kellogg Is Selling Out of the Cookie Business appeared first on InvestorPlace.
Kellogg Company (K) inks deal to divest certain cookies, pie crusts, fruit and fruit-flavored snacks, and ice cream cones businesses to Ferrero.
Stocks that moved substantially or traded heavily on Monday: Kellogg Co., down $1.36 to $56.02 The food company is selling its iconic Keebler cookie brand and other businesses to Ferrero for $1.3 billion. ...
The Dow Jones Industrial Average closed higher Monday following news of a surge in China's manufacturing output and signs of progress in the U.S.-China trade talks. rose after analysts at Oppenheimer raised their price target on the online retailing giant. Stocks ended on a high note Monday following the strongest reading of manufacturing output in China in at least eight months and further indications of progress in the U.S.-China trade talks.
Examine Kellogg Company's corporate structure to identify major subsidiaries. Explore the large acquisitions that make up operating units today.
In a move to concentrate on reshaping and revamping its brand portfolio, Kellogg Co. (NYSE:K) announced on Monday it is selling its cookie and fruit snacks businesses to Italian confectioner Ferrero Group for $1.3 billion. Warning! GuruFocus has detected 4 Warning Signs with K. Click here to check it out. The divestiture, which was announced last November, represents a portion of Kellogg's North American snacking business, encompassing cookie brands Keebler, Mother's, Famous Amos, Murray's as well as Little Brownie Bakers, which is one of the producers of the Girl Scouts' popular cookies.
Kellogg is selling Keebler cookies and other brands for $1.3 billion, about $2.6 billion less than it spent on that brand alone 17 years ago. Food producers are trying to find new brands with more growth potential after sweeping shifts in consumer taste, particularly in the U.S. The value of household names like Keebler has deteriorated as families seek food and snack alternatives that are at least perceived to be healthier.
Kellogg news about the company's decision to sell its Keebler business has K stock down on Monday.Source: Shutterstock This deal will has Kellogg (NYSE:K) selling Keebler, as well as other related businesses, to confectionery company Ferrero. Ferrero is willing to pay a pretty penny for the business too. It will spend $1.30 billion in cash to acquire Keebler.The Kellogg news means that Ferrero is going to be responsible for several brands under the Keebler banner. This includes Mother's, Famous Amos, Murray's, and Murray's Sugar Free. It will also have it handling the creation of cookies sold by the Girl Scouts of the U.S.A.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe deal between the two companies will have Ferrero obtaining a strong business. Keebler and the other businesses were responsible for $900 million in net sales and $75 million in operating profit during 2018."This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth," Steve Cahillane, Kellogg Chairman and CEO, said in a statement. "Divesting these great brands wasn't an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow." * The Elite 8 Stocks to Buy for Massive Outperformance According to Kellogg, it is expecting the deal to be less than 5% dilutive to its earnings per share in 2019. It notes that this is assuming that the cash from the deal is used to pay down outstanding debt.K stock was down 1% as of noon Monday. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Transformed Their Business * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos * 7 Weak Blue-Chip Stocks to Trim Immediately As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Kellogg News: K Stock Slips on Keebler Sale appeared first on InvestorPlace.
Kellogg Company (K) has agreed to sell its Keebler, Famous Amos and fruit snacks brands to Italian confectionery company Ferrero Rocher for $1.3 billion.
U.S. food group Kellogg Co has agreed to sell its Keebler biscuits brand and other assets to Nutella maker Ferrero for $1.3 billion as it focuses on its core cereals and snacks businesses. The deal comes as packaged food companies struggle to adjust to changing consumer tastes and rising demand for low-sugar, healthier items. Monday's transaction is Ferrero's fourth acquisition in the Unites States since 2017 as it looks to expand in a key market for chocolate and biscuits, an area where it is growing rapidly.