Kellogg's Sales Miss Estimates as Breakfast-Food Unit Slipsby
Kellogg Co., the world’s largest cereal maker, posted third-quarter revenue that trailed analysts’ estimates after sales of breakfast foods slumped and currency fluctuations ate into revenue.
Sales in the three months through Oct. 3 fell 8.5 percent to $3.33 billion, the Battle Creek, Michigan-based company said Tuesday in a statement. Analysts estimated $3.42 billion, on average.
Kellogg, known for brands like Pop-Tarts and Frosted Flakes, has faced declining sales in its morning-foods business as more Americans eat breakfast away from home or switch from cereal to options like Greek yogurt. The company has been cutting costs and looking to its snack business, which includes the Pringles brand, to offset the decline.
Kellogg shares fell 3.6 percent to $68.09 at the close in New York. The stock has gained 4 percent this year.
Net income dropped 8.5 percent to $205 million, or 58 cents a share, from $224 million, or 62 cents. Excluding some items, profit was 85 cents a share. The average of analysts’ estimates compiled by Bloomberg was 84 cents.