In 2012, Kellogg sold $14.1 billion worth of cold cereals, cookies, crackers, waffles, snack bars, pastries, and those Lord-knows-what things you put into a toaster. In 2013, Kellogg sold $14.7 billion. In 2014, Kellogg sold $14.7 billion. And, over the course of 2015, Kellogg is expected to sell $14.7 billion worth of its food. The revenue growth has been sluggish, and absent a large buyback program to act as a countervailing force, this explains why Kellogg does not get nearly as much coverage as other companies in the blue-chip sphere.
On conference calls, Kellogg executives have described the breakfast tastes of Americans (who contribute $950 million towards the $1.4 billion in annual profits at Kellogg) as “evolving.” In plain English, Americans aren’t tearing down the aisles for more cereal year after year, and General Mills, Nestle, and the discounted store brands have proved to be worthy competitors. And it shows: … Read the rest of this article!