: Kellogg on track with plan to split into two publicly traded companies in Q4

Kellogg Co. K said Wednesday it’s on track with its plan to separate into two publicly traded companies in the fourth quarter. In a statement released ahead of an investor day, the company said its North American cereals business will be folded into the new WK Kellogg Co., which will trade under the ticker ‘KLG.’ The rest of the business will be folded into a company to be called Kellanova that will continue to trade under the current ticker ‘K.’ Kellanova is expected to generate sales of about $13.4 billion to $13.6 billion in 2024 and adjusted per-share earnings of $3.55 to $3.65. “Kellanova will feature a portfolio weighted toward snacking, with a global footprint and significant presence in fast-growing emerging markets,” the company said. About 60% of its 2022 sales came from snacks, including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, and more. International cereal accounted for about 20% of 2022 sales, while noodles and other account for just over 10%. Frozen foods accounted for the remaining just under 10%. WK Kellogg is expected to generate sales of $2.7 billion in 2024. The stock was slightly higher premarket but is down 11% in the year to date, while the S&P 500 SPX has gained 17%.

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