Wide-Moat Kellogg Chips in a Tasty End to Fiscal-Year 2022; Shares Still Worth Snacking On

We view wide-moat Kellogg’s fourth-quarter results as evidence of the enhancements being cultivated by its multiyear agenda to pare back its exposure to noncore brands and categories while investing in brands and capabilities. Organic sales shot up an impressive 16%, buoyed by higher prices (up 15.6%) and increased volumes (0.6%). Further, Kellogg unlocked gains in adjusted gross and operating margins, which rose 120 and 40 basis points, respectively, to 31.4% and 11%. These marks came even as it weathered pronounced cost inflation (qualitatively referenced) and continued to funnel resources prudently to support its brand mix.