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]
Why Shares of WK Kellogg Skyrocketed Today