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Kellanova (K) Stock Jumps 10% in a Week: What's the Buzz About?
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Kellanova’s (K - Free Report) shares have experienced a significant rally, climbing nearly 10% in the past week. This includes a notable 7.8% surge following the announcement on Aug 14 that Mars intends to acquire the company, which has renewed investors’ interest and confidence in Kellanova's prospects.
Mars-Kellanova Deal: A Win for Both Giants
Mars, Incorporated, a family-owned global leader in pet care, snacking and food, inked a deal to take over Kellanova for $83.50 per share in cash, totaling $35.9 billion, on Aug 14. Under the agreement, Mars will acquire all outstanding equity of Kellanova, with the transaction expected to close in the first half of 2025.
Kellanova, renowned for brands like Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, Nutri-Grain and RXBAR, brings a legacy of quality and innovation. The acquisition will integrate Kellanova’s portfolio with Mars' extensive lineup, which includes billion-dollar brands such as SNICKERS, M&M’S and TWIX, along with a robust pet care segment featuring ROYAL CANIN and PEDIGREE. Notably, Mars achieved 2023 net sales of more than $50 billion, whereas Kellanova’s sales surpassed $13 billion in the same time.
Image Source: Zacks Investment Research
The deal aligns strategically for both companies. Kellanova will be incorporated into Mars Snacking, where Mars plans to leverage its brand-building expertise to drive Kellanova’s innovation and global expansion, particularly in health and wellness products.
Kellanova's addition to Mars' portfolio, including billion-dollar brands Pringles and Cheez-It, will enhance Mars' presence in the snacking category, expanding its health & wellness offerings and global reach. Kellanova’s brands, known for their unique and category-leading positions, will be integrated into Mars’ distribution platform, targeting growth in international markets like Africa and Latin America. The combined entity will benefit from the complementary routes-to-market, supply chains and local operations.
While this acquisition accelerates Mars’ strategic vision for the future of snacking, Kellanova is likely to benefit from Mars’ extensive global presence and resources. However, Mars’ proven brand-building expertise and robust R&D capabilities will support Kellanova in driving consumer-centric innovation. This partnership will help Kellanova introduce new products and expand its portfolio to meet evolving consumer preferences, especially in health and wellness.
Wrapping Up
Joining forces with Mars will enable Kellanova to fuel its growth strategy and realize its vision of becoming the world’s leading snacking company. For Kellanova, the deal offers accelerated growth opportunities, strengthened market positioning and boosted shareholder value. The deal is likely to create a powerhouse in the snacking industry, combining the strengths and resources of both companies.
Presently carrying a Zacks Rank of 3 (Hold), Kellanova’s shares have surged 30.4% in the past three months, compared with the industry’s growth of 7.1%.
Better-Ranked Food Bets
The Chef’s Warehouse (CHEF - Free Report) , which distributes specialty food and center-of-the-plate products, has a trailing four-quarter earnings surprise of 33.7%, on average. CHEF currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current financial-year sales and earnings calls for growth of 9.7% and 12.6%, respectively, from the prior-year reported level.
Vital Farms (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 82.5%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year earnings indicates growth of 72.9% from the year-ago reported numbers.
Nomad Foods (NOMD - Free Report) , carrying a Zacks Rank #2, manufactures and distributes frozen foods. NOMD has a trailing four-quarter earnings surprise of 3.1%, on average.
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales and earnings implies growth of 4.3% and 11.5%, respectively, from the prior-year reported level.
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Kellanova (K) Stock Jumps 10% in a Week: What's the Buzz About?
Kellanova’s (K - Free Report) shares have experienced a significant rally, climbing nearly 10% in the past week. This includes a notable 7.8% surge following the announcement on Aug 14 that Mars intends to acquire the company, which has renewed investors’ interest and confidence in Kellanova's prospects.
Mars-Kellanova Deal: A Win for Both Giants
Mars, Incorporated, a family-owned global leader in pet care, snacking and food, inked a deal to take over Kellanova for $83.50 per share in cash, totaling $35.9 billion, on Aug 14. Under the agreement, Mars will acquire all outstanding equity of Kellanova, with the transaction expected to close in the first half of 2025.
Kellanova, renowned for brands like Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, Nutri-Grain and RXBAR, brings a legacy of quality and innovation. The acquisition will integrate Kellanova’s portfolio with Mars' extensive lineup, which includes billion-dollar brands such as SNICKERS, M&M’S and TWIX, along with a robust pet care segment featuring ROYAL CANIN and PEDIGREE. Notably, Mars achieved 2023 net sales of more than $50 billion, whereas Kellanova’s sales surpassed $13 billion in the same time.
Image Source: Zacks Investment Research
The deal aligns strategically for both companies. Kellanova will be incorporated into Mars Snacking, where Mars plans to leverage its brand-building expertise to drive Kellanova’s innovation and global expansion, particularly in health and wellness products.
Kellanova's addition to Mars' portfolio, including billion-dollar brands Pringles and Cheez-It, will enhance Mars' presence in the snacking category, expanding its health & wellness offerings and global reach. Kellanova’s brands, known for their unique and category-leading positions, will be integrated into Mars’ distribution platform, targeting growth in international markets like Africa and Latin America. The combined entity will benefit from the complementary routes-to-market, supply chains and local operations.
While this acquisition accelerates Mars’ strategic vision for the future of snacking, Kellanova is likely to benefit from Mars’ extensive global presence and resources. However, Mars’ proven brand-building expertise and robust R&D capabilities will support Kellanova in driving consumer-centric innovation. This partnership will help Kellanova introduce new products and expand its portfolio to meet evolving consumer preferences, especially in health and wellness.
Wrapping Up
Joining forces with Mars will enable Kellanova to fuel its growth strategy and realize its vision of becoming the world’s leading snacking company. For Kellanova, the deal offers accelerated growth opportunities, strengthened market positioning and boosted shareholder value. The deal is likely to create a powerhouse in the snacking industry, combining the strengths and resources of both companies.
Presently carrying a Zacks Rank of 3 (Hold), Kellanova’s shares have surged 30.4% in the past three months, compared with the industry’s growth of 7.1%.
Better-Ranked Food Bets
The Chef’s Warehouse (CHEF - Free Report) , which distributes specialty food and center-of-the-plate products, has a trailing four-quarter earnings surprise of 33.7%, on average. CHEF currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current financial-year sales and earnings calls for growth of 9.7% and 12.6%, respectively, from the prior-year reported level.
Vital Farms (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 82.5%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year earnings indicates growth of 72.9% from the year-ago reported numbers.
Nomad Foods (NOMD - Free Report) , carrying a Zacks Rank #2, manufactures and distributes frozen foods. NOMD has a trailing four-quarter earnings surprise of 3.1%, on average.
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales and earnings implies growth of 4.3% and 11.5%, respectively, from the prior-year reported level.