Kellogg (NYSE: K) shares are trading higher Thursday after the company reported better than anticipated earnings and sales results. Furthermore, the company increased its full-year outlook. Shares rose over 7% following the announcement.
The adjusted earnings of USD1.11 per share, topped the expected USD0.96 a share. Meanwhile the company reported sales of USD3.58 Billion, higher than analysts anticipated USD3.38 Billion.
“Amidst continued difficult circumstances, our organization executed exceptionally well in the first quarter and delivered very good results, both financially and in-market,” said Steve Cahillane, Kellogg Company’s Chairman and CEO. “The quarter featured continued momentum in major brands and categories, accelerated growth in emerging markets, and effective management of cost pressures through productivity and revenue growth management.”
According to Cahillane, snacking habits improved throughout the pandemic and have continued since. Kellogg experienced a 3.5% rise in organic revenue within North America.
“Snacking has not slowed down. In fact, snacking has sped up, so we believe in choice at Kellogg,” Cahillane said.
Cahillane added that consumer eating trends are very divided at the moment as some turn to healthier options such as items from Kellogg’s Morningstar Farms, while others seek out junk food.
Kellogg shares have risen approximately 1.4% since the beginning of 2021, in comparison to the S&P 500 gain of 11%.