If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider WK Kellogg (KLG) . This company, which is in the Zacks Consumer Products - Staples industry, shows potential for another earnings beat.This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 43.62%.For the most re ...

BATTLE CREEK, Mich., April 16, 2025 /PRNewswire/ -- WK Kellogg Co (NYSE: KLG) will host a live virtual webcast of its 2025 Annual Shareholder Meeting on Thursday, May 1, 2025, at 1:00 PM ET.Information about the webcast, which will include both the audio and slide presentation from the meeting, is available on the Investor Relations page of our website at investor.wkkellogg.com. Only Shareholders will be permitted to participate.A rebroadcast will be available 24 hours after the meeting, and available for a ...

WK Kellogg (KLG) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a chang ...

These are just a few of the metrics contributing to KLG's Value grade of A and KMB's Value grade of C. Investors interested in Consumer Products - Staples stocks are likely familiar with WK Kellogg (KLG) and Kimberly-Clark (KMB) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. KLG stands above KMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KLG is the superior value option right ...

Core Insights - WK Kellogg Co (NYSE: KLG) reported mixed Q4 earnings but demonstrated progress in operational efficiency [1] Financial Performance - The earnings report indicated decent improvements in operational efficiency, although specific financial metrics were not detailed in the provided text [1]

Spin-Off and Restructuring - The Spin-Off of WK Kellogg Co from Kellanova was completed on October 2, 2023, with Kellanova distributing one share of WK Kellogg Co for every four shares of Kellanova common stock[17]. - Kellanova's North America cereal business was separated and spun off into WK Kellogg Co, with the distribution of one share of WK Kellogg Co common stock for every four shares of Kellanova common stock on October 2, 2023[17]. - The restructuring plan includes the closure of the Omaha, Nebraska plant by the end of 2026 and a reduction in production at the Memphis, Tennessee facility, with actions expected to be completed by the end of fiscal year 2026[18]. - The company plans to close its Omaha, Nebraska plant by the end of 2026 and scale back production at its Memphis, Tennessee facility, as part of a restructuring plan aimed at modernizing its supply chain[18]. - The company entered into a Transition Services Agreement with Kellanova, which will provide specified services until October 2, 2025, to ensure an orderly transition post Spin-Off[20]. - The company has entered into several agreements with Kellanova post-spin-off, including a Transition Services Agreement to ensure an orderly transition[20]. Products and Market Position - WK Kellogg's principal products are cereals categorized into taste, wellness, and balance sub-categories, with leading brands including Frosted Flakes, Froot Loops, and Special K[22]. - The company’s diverse portfolio of cereals is designed to enhance consumer lives, appealing to a wide range of demographics[16]. - The company’s product offerings are diversified across taste, wellness, and balance sub-categories, appealing to a wide range of consumers[16]. - The company is committed to ongoing innovation and marketing to maintain its leading market position in the North American cereal industry[34]. - The company competes with both branded and private label products, focusing on product quality, taste, and innovation to maintain market position[34]. Financial Performance and Risks - Wal-Mart Stores, Inc. accounted for approximately 29% of consolidated net sales during 2024, with the top five customers collectively representing about 52% of total sales[33]. - The company faces risks related to supply chain disruptions and increases in costs of raw materials, labor, and utilities due to geopolitical and economic conditions[25]. - The company faces risks from supply chain disruptions and increases in costs due to geopolitical, economic, and market conditions, which could adversely impact profitability[25]. - Agricultural commodities such as corn, wheat, and sugar are the principal raw materials, with costs subject to fluctuations due to various market conditions[23]. - The principal raw materials include agricultural commodities such as corn, wheat, and sugar, with costs subject to fluctuations due to various external factors[23]. - The company is navigating a rapidly evolving geopolitical landscape that may affect its operations and financial results due to potential new tariffs[37]. - The company is subject to tariff regulations and the impact of new tariffs on its operations remains uncertain due to the evolving geopolitical landscape[37]. Employee Engagement and Culture - The company aims to foster a culture of employee engagement and well-being, offering competitive compensation and benefits[41]. - The company had approximately 3,280 employees as of December 28, 2024, and is focused on attracting, developing, and retaining talent through various engagement and reward programs[40]. - The company is committed to fostering a culture of employee well-being, offering competitive compensation and benefits packages that include defined benefit pension plans and flexible work arrangements[41]. - The company emphasizes ongoing training and development programs to enhance leadership and technical capabilities among its employees[45]. - The company aims to cultivate a supportive work environment that values diversity and inclusion among its workforce[40]. - The company provides a wide array of opportunities for employees to engage in community volunteering[40]. Research and Development - Research and development expenditures were approximately $24 million for the year ended December 28, 2024[35]. - The company is focused on expanding its product offerings and enhancing existing products through research and development initiatives[35]. Regulatory Compliance - The company is subject to various regulations from U.S. government agencies, which could impact financial performance if violations occur[36]. - The company is subject to various regulations by government agencies, which could impact financial performance if compliance is not maintained[36]. - Compliance with environmental laws did not materially affect the company's financial condition in 2024, and no significant impact is expected for 2025[39]. - Compliance with existing environmental laws and regulations did not materially affect the company's capital expenditures, earnings, or competitive position in 2024, and is not expected to do so in 2025[39]. - The company is not currently involved in any material legal proceedings related to environmental regulations[39]. Leadership - The executive team includes Gary Pilnick as CEO, Sherry Brice as Chief Supply Chain Officer, Bruce Brown as Chief Customer Officer, David McKinstray as Chief Financial Officer, and Doug VanDeVelde as Chief Growth Officer, all appointed on October 2, 2023[43][44][45][46][47]. Segment Reporting - The company’s financial information regarding geographic areas can be found in Note 15 "Segment Reporting" within its consolidated financial statements[42].

Group 1 - Kellogg's shares increased by 11% due to acquisition rumors involving Ferrero Group [1] - Kellogg, spun off from Kellanova in 2023, is a pure-play cereal manufacturer in North America, dominating the cereal market alongside Post and General Mills [2] - The company achieved a 7% growth in adjusted EBITDA for 2024, leading to a valuation of just 7 times next year's EBITDA, attracting interest from Ferrero [3] Group 2 - Ferrero, known for brands like Nutella and Kinder, previously acquired Keebler and Famous Amos from Kellogg for $1.3 billion in 2019, lending some credibility to the acquisition rumors [4] - Regardless of the acquisition speculation, Kellogg offers a 3.2% dividend yield and is considered a turnaround investment opportunity [5]

Core Insights - WK Kellogg Co. reported mixed fourth-quarter 2024 results, with a decline in top-line revenue but an increase in bottom-line earnings, surpassing consensus estimates [1][2] Financial Performance - Adjusted earnings per share were 42 cents, exceeding the Zacks Consensus Estimate of 25 cents, and up from 29 cents in the prior year [1] - Adjusted net sales were $640 million, missing the Zacks Consensus Estimate of $643 million, and reflecting a 1.8% year-over-year decline [2] - Adjusted gross profit increased to $195 million from $190 million year-over-year, with an adjusted gross margin expansion of 130 basis points to 30.5% [3] - Adjusted EBITDA rose 7.5% year-over-year to $57 million, with an adjusted EBITDA margin increase of 70 basis points to 8.9% [4] Cost Management - Selling, general and administrative expenses decreased by 1.2% to $163 million, representing 25.5% of sales, which is a slight increase from 25.3% [5] Cash and Debt Position - The company ended the quarter with cash and cash equivalents of $40 million, long-term debt of $460 million, and total equity of $317 million [6] - Cash generated from operating activities for the year was $100 million [6] Dividend Announcement - Management announced a 3% increase in the quarterly dividend from 16 cents to 16.5 cents per share, payable on March 14, 2025 [7] 2025 Guidance - First-quarter 2025 net sales and profit are expected to decline by 1.5-2.5% due to shipment timing and the lapping of a large retailer promotion [10] - For 2025, organic net sales are projected to decline by 1%, with anticipated low-single-digit price increases and a similar rate of volume decline [11] - Adjusted EBITDA is expected to grow by 4-6%, targeting $286-$292 million [12] Capital Expenditure Plans - The 2025 capital investment plan includes $70 million for base business CapEx and $200 million for supply-chain modernization, funded through cash flow and debt [13] Stock Performance - KLG stock has decreased by 2.9% over the past three months, compared to a 1.5% decline in the industry [14]

Financial Data and Key Metrics Changes - For the year, net sales declined by 1.1%, or 0.9% when excluding currency impact, with a significant weakening of the Canadian dollar negatively affecting sales by 20 basis points [15][35] - Gross margin for the year was 29.8%, an increase of 90 basis points, driven by improved supply chain operations [17][40] - EBITDA for the year grew by 6.6%, exceeding guidance expectations of 5% to 6% growth, with an EBITDA margin of 10.1%, a 70 basis point improvement [18][40] Business Line Data and Key Metrics Changes - In the US, in-market dollar sales for WK Kellogg declined by 2.8%, with a market share of 27.4%, down 40 basis points from the prior year [20] - In Canada, WK Kellogg maintained a market share of 39.2%, increasing its position by 90 basis points to 38.9% for the year [22] - The Caribbean team grew market share by 50 basis points for the year [22] Market Data and Key Metrics Changes - The US cereal category dollar sales declined by 1.3%, with volume declining in low single digits [20] - Increased promotional activity was noted in the category, impacting WK Kellogg's top line and share position [21] Company Strategy and Development Direction - The company is focused on modernizing its supply chain with an investment of up to $500 million, aiming for a margin expansion of approximately 500 basis points by the end of 2026 [10][18] - The company is transitioning to its own independent warehouse network and creating a scalable IT infrastructure [12][13] - The 2025 plan includes a robust commercial strategy driven by innovation and operational discipline [28][49] Management's Comments on Operating Environment and Future Outlook - Management expects the challenging operating environment to persist in 2025, with plans to drive demand through innovation and brand building [21][30] - The 2025 guidance anticipates a stable top line with EBITDA growth of 4% to 6%, excluding potential impacts from tariffs [30][46] - Management expressed confidence in the execution of their strategy and the ability to navigate a dynamic operating environment [31][55] Other Important Information - Full-year 2024 net cash flow from operations was $100 million, with capital expenditures of $129 million [42] - The company ended the year with $535 million of debt and cash equivalents of $40 million, resulting in net debt of $495 million [43] Q&A Session Summary Question: What is the 2025 top line guidance embedding for category performance and market share? - Management indicated confidence in executing the plan, assuming category performance at pre-COVID levels down single digits [61] Question: Can you quantify the impact of volume deleverage on gross margin? - Management noted that volume declines were considered in the overall margin expansion strategy [66] Question: How do organic sales growth and scanner data relate? - Management explained that the organic sales growth was impacted by various factors, including inventory build and innovation [75] Question: What is the expectation for promotional activity in 2025? - Management acknowledged the competitive promotional environment and emphasized the importance of delivering value through various levers [114] Question: How does the company plan to achieve positive price mix growth? - Management expects positive price mix growth driven by PPA activity and innovation, with volume and dollars converging in the back half of the year [122][123] Question: What are the plans for market share stabilization? - Management emphasized the importance of maintaining a stable top line while focusing on market share, with confidence in brand performance [134]

Core Insights - WK Kellogg (KLG) is addressing a decline in US market share by introducing donut-inspired cereals, which CEO Gary Pilnick believes will enhance their product appeal and help regain market position [2][7] - The company reported quarterly earnings that exceeded analyst expectations, resulting in a 4% increase in stock price, despite a 0.4% year-over-year decline in domestic market share [3][6] Financial Performance - Kellogg's adjusted net income for the quarter ending December 28 was $37 million, a 48% increase from the previous year and above the expected $22.5 million [6] - For the full year 2024, Kellogg reported an adjusted net income of $149 million, surpassing the consensus estimate of $131 million, although this figure represents a 9.1% decrease from 2023 earnings after accounting for the spinoff of Kellanova [6] Market Trends - The company's US cereal sales fell by 2.8% year-over-year in Q4, a more significant decline compared to the broader industry, primarily due to weak sales of Special K [5] - Kellogg's other brands, such as Mini-Wheats, Rice Krispies, and Frosted Flakes, showed steady or improving market share, but overall market-share losses were attributed to reduced promotional activities compared to competitors [5] Future Outlook - Kellogg anticipates a sales improvement in 2024, projecting EBITDA growth of 4% to 6%, although this forecast does not include potential tariffs on imports from Mexico and Canada [4] - The company remains confident in its strategy and believes it is well-positioned to navigate a dynamic operating environment [4]