Is Kellogg a Good Investment?

PHOTO CREDIT: Kellogg’s

OVERVIEW

Kellogg Company is a company based in the United States. The company designs, manufactures, and sells a wide range of food products around the world. The company offers a wide range of cereal, breakfast, and other food products under Kellog’s, Morningstar Farms, Choco Krispies, and many others. The company was founded in 1906.

Why You Should?

  1. Kellogg is a great reopening play in an investor’s portfolio. The company saw sales in its commercial division drop as the pandemic shut down restaurants and other large venues. However, once the pandemic is over, the company will see strong growth return to this division.
  2. The COVID-19 pandemic also benefited the company. As the pandemic spread across the country, consumers increased their consumption of cereal, something that consumers seemed to eat for meals other than breakfast as well. Stocking up on comfort food also benefited the company’s sales in its breakfast category.
  3. Kellogg, like many other food companies, is an extremely safe investment option in an investor’s portfolio. Despite the economic conditions, consumers around the world will continue to purchase food products. This will help Kellogg go through a tough time and will also benefit investors in the company.
  4. Kellogg sells a wide range of well-known products to consumers around the world. The company operates under the popular Kellogg’s brand, which sells cereal like Choco Krispies, as well as other products under the Incogmeato and Morningstar Farms brands. These brands and products are popular and will continue to benefit the company and its investors.
  5. Kellogg continues to diversify and add new products to its portfolio to achieve new growth and unlock other opportunities. For example, the company has been investing heavily in the plant-based meat market through its Incogmeato and Morningstar Farms brands. This innovation will benefit the company and its investors in the future.

Why You Should Not?

  1. The company faces tough competition in the food industry. Some of these competitors include General Mills, Conagra Brands, Campbell Soup Company, and many others. This competition might hurt the company and its investors in the future.
  2. The company continues to face rising costs and product shortages due to supply chain issues. For example, the price of shipping, raw materials, and packaging products has risen significantly over the past couple of months as the world reopens from this pandemic. This has hurt the company’s operations and has also hurt investors in the company.

MY OPINION

I think that Kellogg is a good long-term investment due to its position as a good reopening play, positive impacts from the pandemic, its position as a safe investment option, its wide range of products, as well as continued innovation. however, tough competition and negative impacts from supply chain issues might hurt the company and its investors.

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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