Kellogg Tumbles After Cereal Company Reduces Sales Forecast
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Kellogg Co., the maker of Corn Flakes and Rice Krispies, fell the most in more than six months after cutting its long-term growth forecast, hurt by a decline in consumers eating cereal as part of their morning routine.
The company now expects sales to grow by 1 percent to 3 percent annually over the long run, down from a previous target of 3 percent to 4 percent, according to a statement Thursday. While the company maintained its long-term earnings forecast, it expects operating profit to drop 2 percent to 4 percent in the current year, in part because of a change to its compensation plan. Sales will be little changed this year, Kellogg said.