Kellogg Co K

On the surface, Kellogg’s fourth-quarter results (2.5% organic sales growth and 70 basis points of adjusted operating margin degradation to 11.8%) look quite bleak relative to the mid- to high-single-digit COVID-19-induced demand levels that have characterized its results of late. However, we aren’t wavering on our contention that management has been positioning the business for sustained, long-term improvement by divesting noncore brands and stock-keeping units, while also upping investments in capabilities and brands since transitioning its entire operation over to warehouse distribution in 2017.