This Food Giant Is Doing Just Fine, Even Though Its Results Look Weak Right Now
Kellogg's (NYSE: K) first-quarter 2022 earnings were tough to read. That's not because they were inherently bad, but because there were a lot of moving parts that investors needed to digest. In some ways the company's performance looked weak, but in others it was doing quite well. Overall, Kellogg is probably doing better than what its earnings suggest. Here's why.
Kellogg, an iconic food maker, was able to increase organic sales by 2.4% in the first quarter. However, almost all of that gain came from the company increasing prices, which was a 9.9 percentage point benefit. Offsetting that were currency fluctuations, which are out of the company's control, and volume declines. On the surface, it looks like Kellogg jacked prices up a lot and, at the same time, lost a lot of customers.
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Source Fool.com
