Kellogg's Q2 Cereal Sales Snap Back and Crackle, but Investors Shouldn't Pour Into Shares After Pop

Investors have craved wide-moat Kellogg’s shares since the firm’s June announcement to split its on-trend snacking business from its North American cereal and plant-based arms, sending shares up at a low-double-digit percent clip (erasing a significant portion of the discount by which we had believed the stock traded). While management continues to claim the separations afford enhanced focus, we still surmise the motivation is anchored in unlocking a higher multiple for the faster-growing snack business once it's unencumbered by its mature domestic cereal brands.