Kellogg news for Wednesday about its plant-based meat offerings have K stock heading higher.
Kellogg (NYSE:K) is the owner of MorningStar Farms, which is a brand that deal is fake meat. It’s origins date back to the 1970s and is the largest maker of plant-based meat. This includes both chicken and burgers.
There’s a major buzz around fake meat right now that could have Kellogg cashing in on this brand. Other companies, such as Beyond Meat (NASDAQ:BYND) and Impossible Burger, are seeing growth as their business picks up in the raising market.
The real surprise from the Kellogg news is that the company isn’t looking to capitalize on this. There are no known plans from the company to hold an IPO for MorningStar Farms or attempt to revitalize the brand.
High estimates claim that MorningStar Farms is pulling in revenue of roughly $450 million a year. On the low end that may be closer to $300 million. Even at these values, that’s still above revenue estimates of $210 million for Beyond Meat in 2019, reports MarketWatch.
All of this talk about Kellogg potentially having an incredible value hidden among its brands has K stock on its way up today. The stock was up 6% as of Wednesday morning, but is down 5% since the start of the year. It also hasn’t been performing well for the last few years. It peaked at $85.99 back in July 2019, but was trading at $53.31 when markets closed on Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.