Why Shares of WK Kellogg Stock Plummeted This Week

Core Viewpoint - Kellogg's stock has been negatively impacted by weak guidance from its peer General Mills, which reported flat sales growth expectations for 2025, despite beating analysts' earnings estimates [1][4] Group 1: Market Performance - Kellogg's shares fell by 14% this week as of Friday morning [3] - General Mills' cereal unit achieved 2% sales growth in the second quarter, contrasting with Kellogg's flat sales and a loss of 30 basis points in U.S. market share [4] Group 2: Competitive Landscape - Post, another primary cereal competitor, has diversified its portfolio by acquiring Potato Products of Idaho, moving away from a sole focus on cereal, unlike Kellogg which remains entirely tied to the cereal industry [2] - General Mills and Post have expanded into pet food and non-cereal breakfast products, indicating a trend of diversification in the cereal sector [2] Group 3: Investment Perspective - Kellogg's focus on the cereal market post-spinoff from Kellanova may streamline operations, presenting a potential value opportunity with a sales multiple of 0.6 compared to Post's 1 and General Mills' 1.8 [5] - Kellogg offers a high-yield dividend of 3.6%, making it an attractive option for value investors [5]