Chicago, Illinois-based Kellanova (K) manufactures and markets snacks, cereals, and noodles as well as frozen foods in various countries around the globe. With a market cap of $27.8 billion, the company offers products under various brands like Pringles, Cheez-It, Pop-Tarts, Kellogg's Rice Krispies Treats, RXBAR, Eggo, etc.
Kellanova has notably underperformed the broader market over the past year. The stock has gained 9% over the past 52 weeks and dropped 1.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 21.5% gains over the past year and 7.1% returns in 2025.
Narrowing the focus, Kellanova has outperformed the sector-focused Consumer Staples Select Sector SPDR Fund’s (XLP) 3.6% gains over the past 52 weeks, but lagged behind XLP’s 2.4% uptick in 2025.
Kellanova’s stock prices remained almost flat in the trading session following the release of its mixed Q2 results on Jul. 31. The company's revenues remained under pressure due to demand softness in the industry; however, its sales were positively impacted by demand from emerging markets. Overall, its topline for the quarter inched up 34 bps year-over-year to $3.2 billion, surpassing the Street’s expectations by a small margin.
Meanwhile, the company’s adjusted operating income fell 5% year-over-year to $477 million, and adjusted EPS dropped 6.9% year-over-year to $0.94, falling short of expectations.
For the full fiscal 2025, ending in December, analysts expect Kellanova to report an adjusted EPS of $3.67, down 4.9% year-over-year. Moreover, the company has a mixed earnings surprise history. It has missed the Street’s bottom-line estimates twice over the past four quarters, and surpassed the projections on two other occasions.
The stock has a consensus “Hold” rating overall. Of the 15 analysts covering the stock, all the analysts give a “Hold” suggestion.
This configuration has remained stable in recent months.
On May 29, Citigroup (C) analyst Thomas Palmer reinstated a “Neutral” rating on the stock, with a price target of $83.5.
Kellanova’s mean price target of $83.39 suggests a modest 4.5% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
