Kellogg’s Corn Flakes owned by Kellogg Company is seen for sale in a store in Queens, New York City, U.S., February 7, 2022.
Mike Segar | Reuters
Kellogg’s cereal business began trading on the New York Stock Exchange at $13.80 per share as “WK Kellogg Co” after spinning off from its parent company on Monday morning.
As part of the separation, Kellogg has been renamed “Kellanova.” It now houses snacking brands like Pringles and Cheez-It and its North American frozen-food unit, which includes Morningstar Farms.
Kellanova is trading under Kellogg’s ticker “K,” while WK Kellogg is under the ticker “KLG.”
Shares of Kellanova were down roughly 3% in morning trading, and WK Kellogg’s stock fell 5%.
Shareholders received one share of WK Kellogg for every four shares of Kellogg they owned as of Sept. 21.
Executives first announced the planned separation in June 2022. Cereal sales have stagnated as consumers choose from a wider variety of options for breakfast and prioritize convenience.
At the same time, snacking is growing more popular as more consumers graze between meals, although the rise of anti-obesity drugs like Ozempic and Wegovy could threaten the future sales.
Kellogg had originally envisioned three separate companies, sectioning off its cereal, snacking and plant-based brands into their own entities. But consumers’ and investors’ interest in the plant-based category waned, leading Kellogg to say in February that those brands would be part of Kellanova.