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Discussion Thread: Finance Analysis for Kellogg Co.
Krystal Kingkade
School of Business Liberty University
BUSI 530
Kellogg Co.
The Kellogg Company, which is also known as Kellogg’s, is one of the leading
multinational food manufacturers that operates in over 180 countries today. They are best
known for their snacks, breakfast food items and convenience foods such as Fruit Loops,
Pringles and
Eggo Frozen Waffles. Kellogg’s was founded in 1906 by two brothers, Will Keith Kellogg and
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John Harvey Kellogg in Michigan but was originally named “Battle Creek Toasted Corn Flake
Company”. The two brothers aimed to create a company that would provide great-tasting,
betterfor-you foods and have sense maintained a strong commitment to sustainability,
nutritious food options and giving back to the community through various initiatives (Our Best
Days are Yours, 2025)
Breakfast Industry Conditions and Financial Position
Over the last several years, the breakfast food industry has grown annually by 0.1%
despite a profit decline in 2023. The breakfast industry is composed of many different
household brands such as General Mills, Nestle and Kellogg’s Co. With the increase in chronic
illness diagnoses, there has been a push for healthy options which promote overall well-being.
This is why low-calorie options are becoming popular, and the breakfast industry is leaning into
the demand. Consumer lifestyle changes have created a push for companies to not only offer
healthy options, but also holds these companies accountable for the products they produce.
Nutrition can be linked to many positive outcomes in not only adults, but children too. There is a
market for foods that promote healthy lifestyles as they can lead to positive development in
children and improve cognition (Roth, 2017). With this specific market growing at a rapid pace,
brands are having to answer the demand and become innovative to capture and keep their
consumer base. Many brands are shifting towards organic, whole grains, and high fiber options
as there are studies that show positive correlations to overall health. Brands such as Kellogg’s
are starting to incorporate high quality ingredients and vitamins into their products which in
turn has made them more expensive to consumers. To remain competitive in the breakfast
brand sector,
Kellogg’s has maintained a competitive pricing strategy which has strong evidence backing.
Ultimately it is up to the consumer to decide if the higher price is worth paying for maintaining
good health and diet.
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Economic Outlook
Over the last several years, there has been geographical expansions and shifts towards
growing snack categories in the Kellogg’s corporation. This has had a positive impact on the
company’s portfolio and has made it more developed. This is because Kellogg’s has taken the
initiative to invest in growth categories which are conducive with emerging markets such as
acquiring several companies, creating partnerships with other corporations, and eliminating
direct-to-store delivery. Myers and Parcell (2022) discuss how Kellogg’s has become a leader in
food safety and health concerns which has allowed them to become a breakfast food industry
leader which other companies mirror. Kellogg’s has been able to successfully expand their
snacking business globally while also increasing their growth in the breakfast and plant-based
food sector. Though they have been successful, they still look at ways in which they can
maximize their strategic potential and have investigated separating these businesses.
Investor Potential
Kellogg is one of the leading brands in the cereal industry and remains competitive due
to their investment in new marketing techniques, technological investments, and product
experimentation. All of these have allowed Kellogg to stay innovative and appeal to consumer
bases which has had a positive impact on their ability to increase annual revenue. Kellogg’s
innovative efforts have allowed the company to be more capable of developing new products
and marketing approaches. In order to determine whether company process is beneficial, it is
important that companies invest in research in order to make informed decisions. The results
that come from research allow companies to make the necessary changes needed to improve
product development, marketing strategies and overall sales and revenue. Kellogg’s has taken
these steps which is evident by their successful revenue increases. This is why it would be
beneficial to invest in the company. As Corinthians 9:6 says, “The point is this: whoever sows
sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully” (New
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International Version, 1978/2011). As an investor, it is important to do proper research of
companies and take risks as they could be profitable in the long run.
References
Google Finance (2025).https://www.google.com/finance/quote/KLG:NYSE?hl=en
Myers, P., & Parcell, L. M. (2022). Beauty and the Bran: Kellogg’s Campaign to “Correct Faulty
Elimination” and Conquer the Cereal Industry. Journalism History, 48(4), 324-348.
New International Version Bible. (2011). The NIV Bible. (Original work published 1978).
Our Best Days Are Yours (2025). https://www.kelloggs.ie/en_IE/who-we-are/our-history.html
Roth, Y. (2017). Do brands serve as reliable signals of nutritional quality? The case of breakfast
cereals. Journal of food products marketing, 23(1), 1-23.
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