The Kellogg Company (NYSE:K) Stock Overview: All You Need to Know About Kellogg’s

History ^[1]

The Kellogg Company, founded in 1906 and headquartered in Battle Creek, Michigan, is an American multinational food manufacturing company. With operations spanning over 180 countries, Kellogg produces a portfolio of well-known cereals and convenience foods. From cereal brands such as Corn Flakes, Frosted Flakes, and Rice Krispies to snacks like Pringles, Cheez-It, and Nutri-Grain bars, Kellogg has a strong presence across various product categories. 

Before Kellogg was established, the wheat flake was first produced by Dr John Harvey Kellogg and Will Keith Kellogg in 1894 at the Sanitas Food Company. In 1914, the company began its first venture into international expansion to Canada. 

Kellogg’s recent ventures include the acquisition of RXBAR, a US-based nutrition bar company in 2017 and its partnership with Tolaram Group in West Africa in 2018 ^[2].  

Kellogg was the first cereal company to start off the cereal box prizes ^[3], but it wasn’t even in a box. In 1909, customers who bought two boxes of Kellogg’s Corn Flakes were given a copy of The Funny Jungleland Moving Pictures Book. In just four (4) years, Kellogg’s had distributed 2.5 million copies of the Jungleland Books ^[4].

When was Kellogg listed? ^[5]

Kellogg’s first IPO was on 9 January 1952. 415,600 shares were offered at $23.75 per share. Approximately 4,000 investors took part in the IPO. Today, Kellogg is trading at more than $60 per share as of 29 August 2023.

Kellogg’s Share Price 2023 ^[6]

Here is how Kellogg’s company has been performing on the stock market for the year 2023:

Chart 1: Kellogg’s share price performance for the year 2023

In 2023, Kellogg Co opened with a year high of 71.31 in January and peaked in May at 71.53. It has since been on a downward trend, plummeting to a low of 60.85 in August.

Kellogg Stock Price History (Annual)
Year	Average Stock Price	Year Open	Year High	Year Low	Year Close	Annual % Change
2022	67.3414	61.4547	74.8664	57.3814	69.9898	14.35%
2021	58.4893	56.2446	63.0573	52.0434	61.2077	7.46%
2020	58.7157	59.8070	64.3295	47.7851	56.9585	-6.86%
2019	51.8176	48.1870	61.1510	44.7704	61.1510	26.08%
2018	55.6780	55.9585	63.1155	47.0111	48.5017	-13.34%
2017	55.9259	58.5890	61.0405	48.0743	55.9668	-4.92%
2016	60.1648	55.6685	68.5342	54.3858	58.8605	4.77%
2015	50.6876	49.4003	57.1455	46.9696	56.1816	13.80%
2014	47.4375	44.5565	51.5678	41.6916	49.3702	10.33%
2013	44.8983	40.4948	48.6887	40.2172	44.7470	12.60%

Table 1: History of Kellogg’s annual stock price

About the stock Kellogg 

Primary exchange: NYSE

Kellogg Stock Symbol: K

Country: U.S.

Currency: USD

Trading hours:

• Main: 9.30am to 4pm ET, Mon to Fri
• Pre-market: 4am to 9.30am
• After-market: 4pm to 8pm

Trade Kellogg with Vantage today at $0 commissions.

Business Segment ^[7]

Sector	Industry	Market Cap(as of 3 July 2023)	Revenue(2022)
Consumer Staples	Consumer Packaged Goods	$23.1B	$15.35B

Table 2: Kellogg’s business segment details

Kellogg operates within the packaged goods industry, specifically focusing on the production and distribution of breakfast cereals, snacks, and various convenience foods. 

As a prominent player in the sector, Kellogg has established itself as a household name. This is achieved through innovation and adapting to changing consumer trends; incorporating healthier alternatives into its product portfolio. 

Dividend history and yield ^[8]

Dividend Yield3.92%	Annual Dividend$2.40	Ex Dividend DateAugust 31, 2023	Dividend Growth1.72%
Payout Ratio93.08%	Payout PeriodQuarterly	Next Div PaymentSeptember 15, 2023	Consecutive Growth19 Years

Table 3: Kellogg’s dividend yield in 2023

Kellogg has a history of consistent dividend payouts which are distributed quarterly every year. With a current dividend yield of 3.92%, it is an increase from its previous of 3.44%. The payout ratio is 93.08% indicating that Kellogg is distributing a significant portion of its earnings to shareholders in the form of dividends.

Stock split history ^[9]

Kellogg Co has undergone a series of five stock splits, with the initial split occurring in 1970 and the most recent one in 1997. All of Kellogg’s stock splits were executed as 2-for-1 splits. 

Stock split list ^[10]

Date	Stock Split
1970	2:1
1973	2:1
1986	2:1
1991	2:1
1997	2:1

Table 4: Kellogg’s stock split list 

What could affect Kellogg’s share price 

1. Debt ^[11][12]

Total Debt to Equity	1 April2023I. Quarter	31 Dec2022IV. Quarter	2 Jul2022II. Quarter	2 April2022l. Quarter	1 Jan2022IV. Quarter
Y/Y Equity Change	6.26%	-7.66%	13.69%	10.7%	15.32%
Y/Y Total Debt Change	-2.54%	-8.82%	-6.92%	-3.99%	-9.29%
Total Debt to Equity MRQ	1.52	1.39	1.54	1.7	1.65

Table 5 : Kellogg’s debt-to-equity figures for the year 2022 and the first quarter of 2023

In April 2023, Kellogg’s reduced its debt to USD$6.89 billion from USD$7.35 billion a year ago, offset by USD$356.0 million in cash, resulting in a net debt of approximately USD$6.54 billion. The company holds short-term liabilities of USD$6.00 billion and long-term liabilities of USD$8.15 billion, surpassing its cash and short-term receivables by a total of USD$12.0 billion. Despite a substantial market value of USD$22.3 billion, careful assessment of its debt repayment capacity is vital.

This could affect Kellogg’s share price negatively if investors’ confidence in the company to manage debt falters.

2. Kellogg Announces Increased Dividend Payment

On 25 August 2023, the board of Kellogg Company has announced that it will be paying investors a dividend of $0.60 during its next payment on 15 September 2023. This puts the company’s dividend yield at 3.9%, an increase from the previous dividend announcement.

This could be attractive to potential investors, particularly for those looking for dividend paying stocks, especially since Kellogg has had a consistent growth in its dividends for the past 19 years.

Why trade Kellogg stocks

1. Dividends

For the past 19 years, the Kellogg Company has been increasing its dividends. The company’s consistent dividend payouts indicate its financial stability and capacity to sustain a reliable dividend in the future.

Here is Kellogg’s dividend payout over the past 19 years:

Year	Dividend Payout (USD$)
2022	2.34
2021	2.31
2020	2.28
2019	2.26
2018	2.20
2017	2.12
2016	2.04
2015	1.98
2014	1.90
2013	1.80
2012	1.74
2011	1.67
2010	1.56
2009	1.43
2008	1.30
2007	1.20
2006	1.14
2005	1.06
2004	1.01

Table 6: Kellogg’s dividend payouts for the past 19 years

2. Kellogg Spin-Off 

In 2022, Kellogg announced its plans for a spin-off of its North America Cereal and Plant Base business. The reason behind this split is to allow the business to focus on smaller segments to maximise growth opportunities. While the splitting of large corporations is not uncommon, it is rare in the food production sector. 

The spin-off will result in three separate ventures:

• Global Snacking Co., which is 80% of the business, is focusing on snack brands under its umbrella, including Pringles, Cheez-It and Eggos;
• North America Cereal Co., focusing on ready-to-eat cereals like Frosted Flakes, Special K, Raisin Bran and Froot Loops; and 
• Plant. Co., focusing on plant-based products anchored around the MorningStar Farms brand.

The spin-off empowers Kellogg to allocate resources strategically to its three distinct ventures. This enables tailored strategies, innovation, and marketing efforts for each segment, fostering agility in responding to consumer trends and enhancing market share and profitability.

3. Brand Stability

Kellogg’s well-established reputation as a household name signifies stability and resilience. The company has successfully navigated the consumer goods market for decades, adapting to changing trends and consumer preferences. This track record of stability is a testament to potential traders who are looking for a stock that is reliable and endures market pressures.

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