Is Big Cereal in a downward spiral? It’s starting to look that way when you take in cereal stalwart Kellogg’s’ latest quarterly results. The packaged foods company reported its Q4 2019 earnings today that saw a drop in sales to $3.22 billion from $3.32 billion a year earlier, reports the Wall Street Journal.
A major factor in that decline was falling cereal sales including popular Kellogg’s brands like Special K and Corn Flakes. Kellogg’s said cereal sales declined almost 2% for the quarter amid external competition for alternate breakfast foods, like offerings from fast food giants.
But while cereal sales are falling, the company may have a life preserver in an unexpected foodstuff: fake meat. Kellogg’s said its frozen products, including popular options like MorningStar Farms alternative meat products, rose almost 5% in North America. The company’s snack products, which include kitchen cupboard staples like Pop-Tarts, also fared well.
All that said, the company did manage to eek out a $145 million profit for the quarter, compared to an $84 million loss a year earlier. At the time of this writing, Kellogg’s stock is trading down over 6%.