wwing/iStock Unreleased via Getty Images Back in early October of 2023, I wrote an article discussing the separation of the company that used to be known as Kellogg. Ultimately, the firm split up into two separate businesses. One of these is now known as WK Kellogg Co ( KLG ), which is the business that now serves as the North American cereal operations of the former conglomerate.
The other enterprise to split off from this came to be known as Kellanova ( NYSE: K ). And it emphasizes the global snack operations, as well as certain key growth markets, of the brands that used to be owned by Kellogg. In that article, I discussed why Kellanova made for an interesting opportunity for investors.
Certain key brands that the business owns have been experiencing attractive growth. In addition to this, the global snack market is appealing in and of itself. Shares of the business, while not exactly cheap, were trading near the low end of the scale compared to similar firms.
At the end of the day, this led me to rate the business a 'buy'. In some respects, things have turned out quite well. Shares are up 16.
2% since then. But relative to the broader market, the company has fallen short, as evidenced by the fact that the S&P 500 is up 26.1% over the same window of time.
As disappointing as this underperformance has been, the company is starting to show some real signs of progress. It still has plenty of room for improvement. But with management now looking to the future and looking for wa.
