Kellogg Splits Into Snack and Cereal Companies; Both Stocks Fall on First Day of Trading

Kellogg split into two separate, publicly traded companies Kellanova (K), focused on snacks, and WK Kellogg (KLG), focused on cereal brands.
Shares of both companies tumbled on their first day of trading after the separation.
The split distributed WK Kellogg shares to Kellanova investors, who received 1 KLG share for every 4 K shares.
Kellanova CEO said the split allows it to enter a "new era" focused on snacks and frozen foods.
WK Kellogg is focused solely on cereal brands like Corn Flakes under a new CEO.

investopedia.com

Relevant topic timeline:

9/17/2023

Kellogg Splits Off Cereal Business to Focus on Snacks as Sales Decline

Kellogg, the American junk food giant, is spinning off its North America cereal division into a new company named WK Kellogg, as it expects the cereal industry to continue its decline and wants to focus on the more attractive snacking segment.

10/1/2023

Snack Food Giants Bet on Junk Despite Rise of Obesity Drugs

Kellogg's is spinning off its cereal business in favor of its snack unit and rebranding as Kellanova, but food companies' focus on snacking is at risk due to the success of obesity and diabetes drugs like Wegovy and Ozempic, which could lead to slower sales for popular snack brands.