Further, the three new entities’ names will be determined later, but they would be the following, “Global Snacking Co.” would represent a leading company in global snacking, international cereal and noodles, and frozen breakfasts, with a rough estimate of $11.4 billion in sales. The next one would be “North American Cereal Co.” a leading cereal company in the U.S., Canada, and the Caribbean with about $2.4 billion in sales. Lastly, “Plant Co.” would be a pure-play plant-based food company with sales of about $340 million.
K chart and analysis
Meanwhile, in pre-market trading, the stock is up over 6% on the news of the split. In general, in 2022, the shares are up over 4%, representing one of the rare stocks that are in the green for the year. With the pre-market move, the shares are now trading above all daily Simple Moving Averages (SMAs). On the other hand, analysts rate the shares a hold, predicting that the next 12 months’ average price could reach $71.67, which is 6.10% higher than the last trading price of $67.55 The rationale behind the split possibly lies in the fact that strong brand names like Pringles and Pop-Tarts will make the snacking side of the business a better growth company. Further, the play on plant-based foods could be an attempt to take on incumbents in the field like Beyond Meat (NASDAQ: BYND) and offer more choices to health-conscious consumers. Buy stocks now with Interactive Broker – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
