Today's Top Stories From the Breitbart News Desk
The Kellogg Company announced today that it was breaking itself up into three companies: a cereal business, a plant-based food business, and a snack business.
It's hard to think of a starker admission of corporate failure. The company's shares basically sat out the great bull market that ended recently. Shares peaked in April of 2016 just short of $82 and never came close again. Shares mostly traded below $70 over the next six years, sometimes much lower. At their trough in 2019, you could pick them up for less than $54 apiece.
The company now says that its basic structure is unworkable. The growing snack business is, somehow, being weighed down by the stable, mature, and boring cereal business. There's also the plant-based food business that does not seem to fit into either snacks or cereals. Certainly, the structure has been unable to produce returns for shareholders. Now management hopes that the parts might be worth more than the sum. Naturally, the chief executive is going with the growing snack business rather than staying with the cereal business that management helped destroy.
Today's Top Stories From the Breitbart News Desk The Kellogg Company announced today that it was breaking itself up into three companies: a cereal business, a plant-based food business, and a snack business. It's hard to think of a starker admission of corporate failure. The company's shares basically sat out the great bull market that ended recently. Shares peaked in April of 2016 just short of $82 and never came close again. Shares mostly traded below $70 over the next six years, sometimes much lower. At their trough in 2019, you could pick them up for less than $54 apiece. The company now says that its basic structure is unworkable. The growing snack business is, somehow, being weighed down by the stable, mature, and boring cereal business. There's also the plant-based food business that does not seem to fit into either snacks or cereals. Certainly, the structure has been unable to produce returns for shareholders. Now management hopes that the parts might be worth more than the sum. Naturally, the chief executive is going with the growing snack business rather than staying with the cereal business that management helped destroy.
1 Comments 0 Shares
Sponsored
Sponsored