Free Essay

Kellogg Company Financial Analysis

In:

Submitted By shivampandit
Words 554
Pages 3
Kellogg's (also Kellogg, Kellogg Company and Kellogg's of Battle Creek) is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Froot Loops, Corn Flakes, Frosted Flakes, Rice Krispies, Special K, Cocoa Krispies, Keebler, Pringles, Pop-Tarts, Kashi, Cheez-It, Eggo, Nutri-Grain, Morningstar Farms, and many more. Kellogg's stated purpose is "Nourishing families so they can flourish and thrive."
Kellogg's was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906, by Will Keith Kellogg as an outgrowth of his work with his brother John Harvey Kellogg at the Battle Creek Sanitarium following practices based on the Seventh-day Adventist Church. The company produced and marketed the hugely successful Kellogg's Toasted Corn Flakes and was renamed the Kellogg Company in 1922.
In 1930, the Kellogg Company announced that most of its factories would shift towards 30 hour work weeks, from the usual 40. W.K. Kellogg stated that he did this so that an additional shift of workers would be employed in an effort to support people through the depression era. This practice remained until World War II, and continued briefly after the war, although some departments and factories remained locked into 30 hour work weeks until 1980.[5] From 1969 to 1977, Kellogg's acquired various small businesses including Salada Foods, Fearn International, Mrs. Smith's Pies, Eggo, and Pure Packed Foods;[6] however, it was later criticized for not diversifying further like General Mills and Quaker Oats were.

Kellogg Company headquarters
After underspending its competition in marketing and product development, Kellogg's U.S. market share hit a low 36.7% in 1983. A prominent Wall Street analyst called it "a fine company that's past its prime" and the cereal market was being regarded as "mature". Such comments invigorated Kellogg chairman William E. LaMothe to improve, which primarily involved approaching the demographic of 80 million baby boomers rather than marketing children-oriented cereals. In emphasizing cereal's convenience and nutritional value, Kellogg's helped persuade U.S. consumers age 25 to 49 to eat 26% more cereal than people that age ate five years prior. The U.S. ready-to-eat cereal market, worth $3.7 billion at retail in 1983, totaled $5.4 billion by 1988, and had expanded three times as fast as the average grocery category. Kellogg's also introduced new products including Crispix, Raisin Squares, and Nutri-Grain Biscuits and reached out internationally with Just Right aimed at Australians and Genmai Flakes for Japan. During this time, the company maintained success over its top competitors: General Mills, who largely marketed children's cereals, and Post, who had difficulty in the adult cereal market.[7]
In March 2001, Kellogg's made its largest acquisition, the Keebler Company. Over the years it has also gone on to acquire Morningstar Farms and Kashi divisions or subsidiaries. Kellogg's also owns the Bear Naked, Natural Touch, Cheez-It, Murray, Austin, Famous Amos, Gardenburger (acquired 2007) and Plantation brands. Presently, Kellogg's is a member of the World Cocoa Foundation.
In 2012, Kellogg's became the world's second-largest snack food company (after Pepsico) by acquiring the Pringles potato crisps brand from Procter & Gamble for $2.7 billion in a cash deal

Similar Documents

Premium Essay

Foodservice Comparative Analysis

...Kellogg Company Narrative - Industry Analysis Nicole Gabor Abstract The Kellogg Company and General Mills are the world’s leaders in manufacturing cereals and snacks. The financial analysis of both companies shows similarities in market trends and issues both companies are facing. The following analysis will shed light the financial standing with direct relation to the DuPont Identity and ratios lending to success and industry trends. Kellogg Company Narrative - Industry Analysis An industry analysis was completed on the well-known company, Kellogg (NYSE:K). The Kellogg Company is one of the world’s largest producers of cereals, snacks and frozen foods. The company product portfolio includes favorites such as Frosted Flakes, Rice Krispies, Eggo waffles and Nutri-Grain cereal bars. Kellogg was founded in 1906 with headquarters located in Battle Creek, Michigan. The company has manufacturing facilities in over thirty-five countries and markets products in more than 180 countries globally. The company is divided into seven business segments which consist of North America, Europe, Latin America, Asia Pacific, U.S. Morning Foods and Kashi, U.S. Snacks, and U.S. Specialty. Kellogg’s biggest competitor is General Mills (NYSE:GIS). General Mills was founded in 1866, and is one of the world’s leading manufacturers of consumer food products. The company has over 100 brands, including Betty Crocker, Cheerios, Yoplait, Gold Medal, and many more. General Mills manufacturers...

Words: 1029 - Pages: 5

Premium Essay

Kellogg's Analysis

...http://www.researchandmarkets.com/reports/577063/ Kellogg: Strategic Corporate Assessment - Strategy, SWOT Analysis and 5-year Financial Insights with In-depth Company Profile Description: Kellogg Company (Kellogg) focuses on brand building, innovation, and sales execution as drivers for sustainable growth. Its commitment to brand building includes significant investment in consumer-oriented promotions, through advertising and market research. Its strong research and development capabilities help it to launch new innovative products and increase its product category share. Scope - Contains corporate strategy, value chain presence and SWOT Analysis - Provides detailed business description, segment analysis, 5-year financial trends, key products and key competitors - Includes information on suppliers/ partners, shareholding structure and key employees with biographies Highlights of this title Kellogg has manufacturing facilities in 19 countries and markets its products in more than 180 countries.North America, Kelloggs largest geographical market, accounted for 67.4% of the total revenues in 2006. The company faces competition across all its product lines from regional, national and global companies. The companys global infrastructure helps it to use resources efficiently around the world. The Pop-Tarts toaster pastry business currently holds 87% category share in the US toaster pastry category in 2006. The company, in August 2007, introduced new Special K2O Protein Water...

Words: 934 - Pages: 4

Premium Essay

Kellogg (K) vs. Kraft (Kft)

...Industry Analysis: Kellogg (K) vs. Kraft (KRFT) Niki Cocke FIN 4461-791 Prof. Amy Ho April 22, 2015 Table of Contents I. Introduction II. Profitability/Risk Ratio Calculations and Analysis a. Kellogg (K) i. Risk ii. Profitability b. Kraft (KRFT) iii. Risk iv. Profitability c. Industry Comparison v. Current Ratio vi. Quick Ratio vii. Days Accounts Receivable Outstanding viii. Profitability 1. Return on Assets 2. Return on Common Equity d. Competitor’s ix. Kellogg’s x. Kraft III. Conclusion IV. Appendix I e. Kellogg’s xi. Kellogg’s Annual Report and Form 10-K 2014 3. Income Statement 4. Cash Flow Statement 5. Balance Sheet f. Kraft xii. Balance Sheet xiii. Statement of Income xiv. Statement of Cash Flows V. References I. Introduction This analysis on Kraft (KRFT) and Kellogg (K) will include multiple facets.Kraft Foods Group, Inc. operates as a consumer packaged food and beverage company. It is also one of the largest company in the North America and the second largest in the world. It operates through six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts, and Canada. The company provides natura, cream, processed, grated and shredded, and cottage...

Words: 1753 - Pages: 8

Premium Essay

American Corporation

...American Corporation Analysis Week 3 Learning Team B Reflection XXXXXXXX Accounting 561 March 12, 2016 Professor Jason Williams American Corporation Analysis (Kellogg’s) Comparative and ratio analysis are important tool for investors and top company management in order to analyze and to determine organization’s financial performance. Comparative analysis is “changes in a financial statement's items over several accounting periods presented together to detect the emerging trends in the company's operations (Kimmel, 2010-2016). The three comparative analysis parts are intracompany basis, intercompany basis, and industry averages. In addition, “ratio analysis is a quantitative analysis of information contained in a company's financial statements (Business Dictionary, 2016).” There are three types of ratio analysis: liquidity, solvency, and profitability ratios. For this assignment, we will conduct a comparative and ratio analysis to measure profitability and liquidity for Kellogg’s Company. Kellogg's Analysis Report “Solvency ratios  measure the ability of the company to survive over a long period of time. Long-term creditors and stockholders are interested in a company's long-run solvency, particularly its ability to pay interest as it comes due and to repay the balance of debt at its maturity” ( Kimmel,Weygandt & Kieso 2011). There are 4 major ratios in: Solvency Ratio Formulas: Debt to total assets: Total liabilities/Total assets Cash debt coverage ratio: cash...

Words: 1400 - Pages: 6

Premium Essay

A Financial Ratio Quarterly Trend Analysis of Kellog Co.

...FIN 6406 A Financial Ratio Quarterly Trend Analysis of: Kellogg Co. Stock Symbol: K Listed on NYSE Exchange Prepared for: Dr. Edward Lawrence Department of Finance Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Ana Carolina De Obaldía Rogemif Fuentes Cesar Giovanni Santos Fábrega Introduction For this project we decided to choose Kellogg’s Company (NYSE: K) to elaborate a financial quarterly trend analysis because it is a big, stable company with 108 years in the market and its products are sold in more than 180 countries worldwide. The ready to eat cereals first appeared in the late 1800’s when a group of vegetarians wanted to expand their food options and decided to create the wheat and corn flakes. It wasn´t until 1906 that Kellogg’s Co. entered the market and has stayed latent through many generations until these days. It is interesting that it survived two world wars and the depression of the United States in the 1930’s. Being this long in the market also means that they have known how to evolve in this world with constant changes, adapting to the behavioral changes in people and their likes remaining competitive and appealing. It is more of a mature company rather than growing company and has many brand-loyal customers. Regarding the sources of information consulted for this report, we used some financial websites to get the financial statements of Kellogg’s and its main competitor General Mills, which we will...

Words: 4831 - Pages: 20

Free Essay

Case Study Kellog

...Everybody Loves Cereal! Kellogg Raul Mendez Lindsey Wilson College 11/2/2015 On my honor as a student, I have neither given nor received any unauthorized aid on this assignment/exam. Introduction The majority of the people do not comprehend how important the breakfast in our lives is. Research shows that 93% of the population in the United States eat or drink something for breakfast, and 51% of this people prefers cereal, this is mainly because health factors. Kellogg's was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906, by Will Keith Kellogg as a consequence of his effort with his brother John Harvey Kellogg at the Sanitarium Battle Creek following practices established on Adventist Seventh Day Christian denomination and he also believed in the remunerations of a vegetarian diet and exercise. John Harvey Kellogg thought that masturbation was something really bad for the people, Therefore, Kellogg wanted to combat masturbation by a simple method: the simple and healthy food. And, he claimed, that was able to overpower the instincts of man's primary, as well as a healthy lifestyle. On the opposing, he believed that other foods such as meats it augmented. So, during his stay in Battle Creek Sanitarium in Michigan, he decided to devise a kind of breakfast inadequate by sexual impulses cereal granules with oats and corn. Later, he teamed with his brother Will and both decided to put sugar to the recipe and then create one of the most...

Words: 1306 - Pages: 6

Free Essay

Kellogs

...Industry Analysis Product Portfolio Marketing Mix Strategies adopted in Indian market Failure of Kellogg’s and its results Porter’s Five Force Model SWOT Analysis PESTEL Kellogg’s •Kellogg Company is a multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. •Kellogg started with only 44 employees in 1906. •Founder, W.K. Kellogg, had a strong commitment to nutrition, health and quality. •Kellogg's products are manufactured in 18 countries and marketed in more than 180 countries. Vision and mission Vision: To enrich and delight through foods and brand that matter. Mission: To drive sustainable growth through the power of our people and brands by better servicing the needs of our customers, consumers and communities. Operating Principles •Remain consumer centric •Executional excellence •Prioritize to win •Continuous efficiency improvement Values • Kellogg Company’s values, K Values™, shape their culture and guide the way they run their business. • In 2005, the company instituted the W.K. Kellogg Values Award, which is given annually to one individual and one team of employees who best exhibit the K Values in their work. History of Kellogg’s 1906 - John Harvey Kellogg and Will Keith Kellogg also known as W.K Kellogg founded the Battle Creek Toasted Corn Flake Company in Battle Creek, Michigan. 1914–The production of the Kellogg’s Corn Flakes expanded world wide. 1922–The Battle Creek Toasted Corn Flake Company changed there...

Words: 599 - Pages: 3

Premium Essay

Mgt521

...a typical strategic plan would include mission statements, generic statements of corporate goals, and a financial plan for longer than five years, and goals, besides financial one, along with how to measure those goals. Strategic planning is developed at the executive or senior management level, and is implemented from the top down. The use is implemented through policies, procedures, and rules in addition to measuring, monitoring, and possibly auditing to ensure compliance in achieving and succeeding in goals developed from the plan. Strategic planning also considers the goals and priorities of the stakeholders. Whereas, operational planning is more detailed information that considers the day-to-day operations of the organization. Operational planning gives specific plans to employees on how to reach goals successfully. Operational planning is used by the front line employees, whereas strategic planning is used more by the executives and top level managers of an organization (Robbins, S.P., & Coulter, M. (2012). Throughout this paper The Kellogg Company will be analyzed. The Kellogg Company was established in 1906 by W.K. Kellogg. Since then Kellogg has branched out into more than just cereal. Currently, the Kellogg Company has a market share in cereal, various breakfast items (ie: cereal bars, pop tarts, etc.), snacks, chips, and crackers. The company’s SWOT analysis will be used to explain how the organization’s goals can be accomplished using various strategic and operational...

Words: 751 - Pages: 4

Premium Essay

Organizational Planning

...Kellogg Company Strategic and Operational Plans Christian Carpenter Management 521 November 1, 2014 Kim Hinton, Professor The planning process of an well-managed business usually starts with a broad mission statement or vision. While this starting point is both admirable and necessary, it usually does not become useable by management until the mission is converted into a strategic plan that is then used to guide operations. Understanding of the differences of the distinction between strategic and operational objectives by the managers play a major role in the conversion of an overarching vision into concrete, specific tasks. Kellogg Company is a multinational fortune 500 company that produces breakfast foods, snack foods, cookies and crackers. The company also manufactures and markets ready-to-eat cereals and convenience foods such as toaster pastries, cereal bars, fruit snacks, frozen waffles and veggie foods (Company, 2014). With its headquarters in Battle Creek, Michigan and employing over 30,700 people the company has grown into a marketing conscious company. It focuses its branding on customer values by doing extensive market research and product branding in order to align to its customers oriented culture. The following strategic direction and goals included in this plan is Kellogg Company’s response to its understanding of its mission of nourishing families so they can flourish and thrive, and its vision to enrich and delight the world through foods and brands that...

Words: 591 - Pages: 3

Premium Essay

General Mills

...Roll-Ups. Some of its #1 and #2 market-leading brands are Better Crocker, Gold Medal, Green Giant, Pillsbury, and Yoplait. General Mills operates in more than 130 countries worldwide and divides its business into three core segments: U.S. Retail (70% of revenue through major retailers), international (18% of revenue and supported by a joint venture with Swiss food giant Nestle SA), and bakeries and foodservices (12% of revenue). Currently, it’s growing its reach from grocery stores into new channels like super centers, drug and discount stores, and convenience stores. It is also expanding quickly into growing markets such as China, Russia, and Latin America. The goal of General Mills is to be among the most socially responsible food companies in the world in addressing the interrelationship of economic, environmental and social value. In 2012, they have reported continued progress in advancing their goals specifically in the health, environment, and sourcing areas. They have improved the health profile of their products again due to the increase of healthy and organic food choices, and have decreased natural resource consumption in global supply chain operations. They’ve taken steps to source more raw materials sustainably and mitigate water risk. General Mills’ pursuit of their goal is to create value not only for their customers, consumers, employees, and stakeholders, but also for their suppliers, our communities, and our world. Industry & Competitive Landscape ...

Words: 1631 - Pages: 7

Premium Essay

General Mills

...General Mills Today alone General Mills will provide 60 million servings of ready-to-eat cereal, 27 million servings of Yoplait dairy products, 5 million Pillsbury Cookies, and 1 million servings of Häagen-Dazs ice cream. These impressive numbers prove what a large and varied food company General Mills is. Throughout the semester we researched and analyzed General Mills from four different angles. These include a business model analysis, accounting and accounting risk analysis, a financial analysis, and a valuation analysis. We have decided General Mills is a successful company that will continue its success into the future. General Mills manufactures and markets branded consumer foods across the globe. It also supplies unbranded food and products to many food service industries. The company was founded in Minneapolis 1928 and it is still based there today. It has acquired many companies since its origination leaving it today as one of the world’s largest food suppliers. General Mills operates in three segments, one being retailers, the second is bakeries/food industries, and The business model for General Mills is to obtain a larger consumer base. The more consumers that enjoy or use General Mills products the more their revenue will go up. General Mills is large in marketing and tries to attract all age ranges with specific foods. It also wants to reach all food segments to be able to reach all types of customers...

Words: 4239 - Pages: 17

Premium Essay

Business Strategy

...Kellogg’s study case: * Mission: It defines what the company does, who it serves and how it serves. This is a formulated form of company`s goal, philosophy and characteristic. For Kellogg`s the quality was the key also the mission is to develop their product through the customers, consumers and communities. * Vision: This can be defined as a dynamic and compelling view at some point in the future. True the vision the company can see where it want to be and what Kellogg`s want to achieve in the future. Kellogg`s vision is ‘To enrich and delight the world through foods and brands that matter’ (Kelloggs). Regarding to our case study, Kellogg`s vision in India was to serve a bigger choice in the food industry and also apart of cereal they wanted to expand into snack and frozen foods in U.S. * Objectives: Kellogg`s objectives included such as support physical activity for the population, promote exercise, sponsor activities (studies). Kellogg became the main sponsor of swimming in Britain. Also they introduce food labelling which is providing an opportunity for the consumers to make decisions about the right balance of food. Kellogg is violently supporting but in the same it puts a lot of effort to protect their reputation. * Goals: Kellogg`s want to provide the consumers all over the world with simple and more suitable way of enjoying good health. * Core competencies: Core competence is important for any company. The firms has to follow the market needs and to be...

Words: 3787 - Pages: 16

Premium Essay

Portfolio Management

...JYMJ Equity Fund Fund Report Managers: Issued: November 11, 2010 Table of Contents Section 1. Objective and Strategy Introduction Investment Objectives Investment Strategies Section 2. Company Profiles Novellus Systems, Inc. Dollar Tree, Inc. Steven Madden, Ltd. Exxon Mobil Johnson Controls, Inc. Canadian National Railway Company Microsoft Corporation Baidu, Inc. Telecomunicacoes de Sao Paulo SA, Inc. Kellogg Company Spreadtrum Technologies, Inc. Section 3. Security Transactions Section 4. Portfolio Breakdown Industry Diversification Portfolio Beta Section 5. Investment Results Portfolio Performance vs. Benchmark Indices Section 6. Summary Section 1. Objective and Strategy Introduction The JMYJ Equity Fund (the “Fund” or the “portfolio”) is an equity fund with an initial capitalization of $100,000. The Fund is managed by a group of four xxxxxx Graduate School of Business students. The Fund made its first investments on September 12, 2010. This report covers the period from September 12, 2010 until November 8, 2010. Throughout this report we refer to this period as the “investment period”. Investment Objective The Fund is allocated so that it may accomplish three...

Words: 4456 - Pages: 18

Free Essay

Kellogg

...Four procedures of accurate information- gathering data, string data, creating useful information, and presenting them can also be learnt. Currently all the successful organizations use IT based data analysis. This type of data analysis has a lot of advantages. Kellogg India is an US based company focused mainly in cereal products. After the reconstruction of Indian market, it decided to expand its operation in this side of this world. It invested 35 million pound and implemented its western policy. Now after decade’s Ups and Downs, Kellogg is keen to control the lion’s share of Indian domestic market and wants to be the only player. While Kellogg still holds more than 60% share in India's Rs 700-crore organized breakfast cereal market and increased its overall sales 30% in FY12, it is now facing increased competition with multinational and home-grown players including PepsiCo, Marico, GlaxoSmithKline and Dr Oater entering the oats and muesli segments(New York Times 1998). That’s why now it’s going to take some vital decision that will reshape its market strategy. The author can examine a variety of data Sources. He can use any type of data and any type of method and also will use all the necessary tools to represent this work. However Author will clarify the whole data analysis process. 1.1 create a plan for the collection of primary and secondary data for a given business problem Primary data is information collected for the specific purpose at hand (Kotler et al...

Words: 3452 - Pages: 14

Premium Essay

Kellogg

...Kellogg – 2005 Henry Beam, Western Michigan University Forest David, Francis Marion University A. Case Abstract This is a comprehensive strategic management case that includes the company’s financial statements, organization chart, competitor information, and industry trends. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Kellogg is headquartered in Battle Creek, Michigan, where the company was started in 1906. Kellogg’s common stock is traded on the New York Stock Exchange under the symbol K. Kellogg is the world’s largest producer of ready-to-eat cereals and a leading producer of cookies and snacks, also known as convenience foods. Kellogg manufactures products in 17 countries and markets them in over 180 countries. Kellogg has a long history of international operations. It started marketing its products in Canada, England, and Australia before World War II and then entered the Latin American, European, and Asian markets. Despite its emphasis on international operations, Kellogg receives about two-thirds of its sales and pre-tax income from North America. Kellogg’s primary competition in ready-to-eat cereals comes from General Mills, headquartered in Minneapolis, Minnesota. Kellogg also competes with the Post unit of Kraft Foods and the Quaker Oats unit of PepsiCo in the ready-to-eat cereal market. General Mills’...

Words: 3760 - Pages: 16