Kellogg Company (NYSE: K) released its quarterly report for the first quarter of 2021. The company is now not expecting a decline in sales. Investors expect this to be a positive sign, considering a strong 2020 outlook for the industry.
Last trading session, K stock closed at $67.53 after it gained 7.07%. The trading volume was 12.59 million shares below the average volume for the past 50 days of 3.15 million shares. The shares of Kellogg Company have gained 7.65% in the last five days; however, they have gained 6.06% in the past month. Over the last three months, the stock price has increased by 16.69%, and it has gained 8.52% so far this year. Further, the stock is currently being traded at a price-to-earnings ratio of 18.16. Moreover, its price to cash flow ratio stands at 33.05 and its price to sales ratio of 1.68.
Kellogg Company (NYSE: K) sales increased about 5% year-on-year last quarter to $ 3.58 billion. Net income rose by 5.7% to $ 368 million, or $ 1.07 a share. The company beat Wall Street’s expectations with adjusted earnings of $1.11 per share.
As restaurants worldwide struggle against increased competition, the demand for Kellogg products is expected to increase. Sales growth from Kellogg typically reached up to 2%, but over the COVID-19 period, sales increased to 10%. Therefore, the economic indicators for the first quarter of 2021 are strongly positive, taking historical trends into account. Kellogg also projects revenues comparable to last year or a very small (1% YoY) decline over an entire year in 2021.
In addition, Kellogg Company (NYSE: K) has been actively working on modernizing its product portfolio. More specifically, the company announced its release of vegetable chicken meat in April 2021, which will be available in May throughout the United States. Kellogg enters a promising, fast-growing market with this new product that mimics the taste, smell, and texture of chicken. According to Polaris Market Research, this market is anticipated to reach $10.11 billion in value in 2027 at a compound annual growth rate of almost 16.7%.
