Premium Essay

Kellogg (K) vs. Kraft (Kft)

In: Business and Management

Submitted By nikicocke
Words 1753
Pages 8
Industry Analysis:
Kellogg (K) vs. Kraft (KRFT)

Niki Cocke
FIN 4461-791
Prof. Amy Ho
April 22, 2015

Table of Contents

I. Introduction II. Profitability/Risk Ratio Calculations and Analysis a. Kellogg (K) i. Risk ii. Profitability

b. Kraft (KRFT) iii. Risk iv. Profitability

c. Industry Comparison v. Current Ratio vi. Quick Ratio vii. Days Accounts Receivable Outstanding viii. Profitability 1. Return on Assets 2. Return on Common Equity d. Competitor’s ix. Kellogg’s x. Kraft III. Conclusion IV. Appendix I e. Kellogg’s xi. Kellogg’s Annual Report and Form 10-K 2014 3. Income Statement 4. Cash Flow Statement 5. Balance Sheet f. Kraft xii. Balance Sheet xiii. Statement of Income xiv. Statement of Cash Flows V. References

I. Introduction

This analysis on Kraft (KRFT) and Kellogg (K) will include multiple facets.Kraft Foods Group, Inc. operates as a consumer packaged food and beverage company. It is also one of the largest company in the North America and the second largest in the world. It operates through six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts, and Canada. The company provides natura, cream, processed, grated and shredded, and cottage chesses, as well as sour creams; cold cuts, hot dogs, bacons, and protein packs; lunch combinations, pickles, and meat alternatives; coffees, hot beverage systems, packaged juice drinks, powdered beverages, and liquid concentrates; and refreshment beverages. It also offers macaroni and cheese dinners, shells and cheese dinners, dry packaged desserts, refrigerated gelatin and pudding snacks,…...

Similar Documents

Free Essay

Kelloggs

...Europe's Carmakers Want to Shrink. Unions Stand in the WayUnion resistance to job cuts has saddled manufacturers with costs Global Economics The Hot New Target for B-School Applicants: GermanyConclave to Elect Pope Starts on TuesdaySkype's Been Hijacked in China, and Microsoft Is O.K. With ItFor Chávez's Successor, Venezuela's Economy Looms LargeRecent Pride and Concrete: Romania's Migrant WorkersThe U.S. Jobs Engine Was Strong Heading Into SequestrationDid They All Retire?Coke, Unilever, Colgate-Palmolive Seize India's Biggest Marketing OpportunityFederal Reserve's Stress Testing Shows Politics, Not MathSections ChinaCurrent Events CalendarU.S. EconomyIndiaEnergyHousingEuropeGlobal EconomicsJobsBlog: EconochatCompanies & Industries Facebook vs. Twitter: Want Your Feed Filtered or Unfiltered?Twitter's unfiltered method can be overwhelming; Facebook's is secretive and invasive but helps with the oceans of content Companies & Industries Britain's Wonga: Payday Lender and Proud of ItAutomakers Cashing in on High-End ModelsThe Economic Benefits of Educating WomenHow Facebook's New Design Can Increase Ad RevenueRecent The Man Who's Trying to Free Sherlock HolmesSkype's Been Hijacked in China, and Microsoft Is O.K. With ItStandard Bank Takes Risky Step With Co-CEOsCoke, Unilever, Colgate-Palmolive Seize India's Biggest Marketing OpportunityEurope's Carmakers Want to Shrink. Unions Stand in the WaySections AutosSportsCompany ResearchEnergyExecutive ResearchHealth CareJob......

Words: 2395 - Pages: 10

Premium Essay

Kelloggs

...themselves as the leader with health-conscious innovative breakfast choices such as Special K, All Bran and nineteen cereals (Kellogg’s). While expanding yet Kellogg’s has come up with vegetarian-based food groups, Worthington Foods founded in 1999 and the organic-based food, Kasha Company had been founded in 2000 (Kellogg’s). Over the years of 2005, 2006, 2007, 2008, 2009 and 20010 the Kellogg’s net sales were up by four percent, the operating profit was up by three percent, net income attributable to Kellogg’s Company was up by five percent, basic per share accounts were up by seven percent, the diluted per share amount was up seven percent, dividends paid per share were up by eight percent and the earnings per share (diluted) were also up seven percent. In conclusion the Kellogg’s company is a big known company around the world; they have lots and lots of food, I never realized how many different items that they had until I had chosen to use them for a project. It is easy to just grab a pop-tart in the mornings for the kids as you run them to the bus stop. Kellogg’s also has other foods such as snack foods for the kids to grab. A lot of people probably eat Kellogg’s foods about every day and probably don’t even realize that they are eating them. They do have a lot of good foods. COMPANY Kellogg’s Company References Bloomberg Business week Kellogg CO (K: New York) (2011) Retrieved on May 22, 2011 from: ......

Words: 874 - Pages: 4

Free Essay

Kellogg

...® Kellogg Company // Form 10-K For Fiscal Year 2012 (Ended December 29, 2012) This page intentionally left blank UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Í ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 29, 2012 ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From To Commission file number 1-4171 Kellogg Company (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of Incorporation or organization) 38-0710690 (I.R.S. Employer Identification No.) One Kellogg Square Battle Creek, Michigan 49016-3599 (Address of Principal Executive Offices) Registrant’s telephone number: (269) 961-2000 Securities registered pursuant to Section 12(b) of the Securities Act: Title of each class: Common Stock, $.25 par value per share Name of each exchange on which registered: New York Stock Exchange Securities registered pursuant to Section 12(g) of the Securities Act: None Indicate by a check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes Í No ‘ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act. Yes ‘ No Í Note — Checking the box above will not relieve any registrant required to file reports pursuant......

Words: 50469 - Pages: 202

Free Essay

Krafts

...Lashiconnah Hammer Mr. Israeli English 102 24 November 2013 Kraft Mac N’ Cheese Exploring a Problem Over the past decade, the amount of cancer patients has increased dramatically. The fight against cancer stays constant. There is no answer and no cure to the disease. It is looked at as an unreciprocated problem. Fortunately, scientists have the advance technology to trace a single cancerous cell in our tissue to the chemical compound infected by the cell. Tests have been conducted on food dye placed in our foods and the results were devastating. The FDA, Food and Drug Administration, in the U.S. have allowed these chemical compounds, yellow 5 and yellow 6, in iconic foods brands like Kraft Mac’ N’ Cheese. Many were dumbfounded that the U.S., openly knowing yellow 5 and 6 are known carcinogens, would allow it in our food products. Hundreds of families have come together to create a petition against Kraft’s and the FDA. Kraft’s or the FDA has yet to response to all these eager families affected by yellow 5 and 6. FDA is unwilling to cut regulations saying evidences cannot be pin pointed to causing cancer. Kraft’s continues to produce Mac N’ Cheese with the yellow food dye in the U.S. but has been restricted to allow the dye in there overseas product. I believe we deserves the same Kraft Mac N’ Cheese as produced overseas, containing no artificial food dye. Describe chemical—scientist analyst—To get a clear understanding of the molecule, we must break it down. The......

Words: 1171 - Pages: 5

Free Essay

Kellogg

...Introduction Decision making is a vital part of business. But without having the appropriate source of information it can’t be done properly. One can learn about various fields of business while taking decision. Four procedures of accurate information- gathering data, string data, creating useful information, and presenting them can also be learnt. Currently all the successful organizations use IT based data analysis. This type of data analysis has a lot of advantages. Kellogg India is an US based company focused mainly in cereal products. After the reconstruction of Indian market, it decided to expand its operation in this side of this world. It invested 35 million pound and implemented its western policy. Now after decade’s Ups and Downs, Kellogg is keen to control the lion’s share of Indian domestic market and wants to be the only player. While Kellogg still holds more than 60% share in India's Rs 700-crore organized breakfast cereal market and increased its overall sales 30% in FY12, it is now facing increased competition with multinational and home-grown players including PepsiCo, Marico, GlaxoSmithKline and Dr Oater entering the oats and muesli segments(New York Times 1998). That’s why now it’s going to take some vital decision that will reshape its market strategy. The author can examine a variety of data Sources. He can use any type of data and any type of method and also will use all the necessary tools to represent this work. However Author will clarify the......

Words: 3452 - Pages: 14

Free Essay

Kellogg

...Background summary: Kellogg Company is a manufacturer of cereal and convenience foods, such as cereal bars, fruit-flavored snacks, frozen waffles, cookies, and crackers. Kellogg manufactures its products in 17 countries and sells its products in over a hundred countries. The sales of core products, like cereal, has declined over time in major markets like the United States and Europe. Cereal was a convenient food for breakfast, but now consumers do not have time to “sit down with a bowl, milk, and spoon.” Snacks have become a core product for the company. Kellogg acquired Pringles to expand its market share in international snacks. Kellogg’s investors were pleased with the acquisition. Mr. Bryant paid for Pringles acquisition at a high price of $2.7 billion versus $950 million of Diamond’s deal, because he speculated Pringles would help Kellogg increase profits. Kellogg has faced intense competition from GM & Ralston, Quaker, Post & Nabisco, etc.. Knowledgeable consumers and nutritionists criticized the high caloric content and use too much of salt in Kellogg’s cereals. Mr. Robert Dickerson, Kellogg’s consumer research analyst, believed that the company should refresh its entire portfolio to attract consumers by changing its image on packaging and rebranding the products. Problem statement: Kraft is refocusing their production toward snacks, and Kellogg can face intense competition. Kellogg’s core market sales, profit, and share price have declined. Kellogg must......

Words: 987 - Pages: 4

Premium Essay

Krafts

...Kraft Foods is the biggest food giants in America and world’s second-largest food company only next to Nestle over the world. Krafts foods is one of the international food giants that enter into China market in the earlier times since China implements the reforming and opening up policy. It now boasts the biggest market share in China in two major categories: cookies and powdered beverages. Krafts has many advantages over other local food corporations and even some other international food giants. In the first place, since Krafts arrived China at an relatively earlier time, it has seized people’ heart and thus has occupied a lion’s share of the market.In the second place, Krafts’ has much experience in branding creation. It has lots of famous brands such is Oreo. Maxwell House、stride、Tang、Sugus、Milka and Toblerone. In the third place, its rapid speed in new products’ development. Also, it has a perfect logic and supply chains so that it can distribute new products in a short time. What’s more, with the blooming of China’s economy since the implication of the reforming and opening up policy and the rise in people’s living standard, people are far more satisfied with the daily meal. They begin to buy many snacks as a refreshment after hard working or during their leisure time. Under this circumstance, Krafts and many other international food corporation enjoy good opportunities. All the above reasons can partly explain why it gains such a significant achievement in China.......

Words: 417 - Pages: 2

Premium Essay

Kraft Foods

...Running head: Kraft Foods Kraft Foods Inc Financial Research Analysis Strayer University March 28, 2010 Abstract Kraft Foods Inc. is the largest food and beverage company headquartered in North America and the second-largest in the world after Nestle. From 1988 to March of 2007, tobacco giant Phillip Morris Company, now Altria Group, owned and grew Kraft Foods, merging the food company with Nabisco and General Foods. Altria Group took Kraft public in 2001, maintaining an 88.1% stake in the stock until the completion of the spin off in 2007. Kraft operates in two main commercial segments, which are Kraft North America and Kraft International. Kraft has operations in more than 70 countries and sells their products in more than 150 countries. Kraft's products are divided into one of five categories: snacks & cereals, beverages, cheese & dairy, grocery, and convenient meals. The company's largest customer is Wal-Mart Stores. The purpose of this analysis is to perform a thorough examination of Kraft Foods Inc. financial performance over the past three years. In January 2004, the company announced a three-year restructuring program that ended in 2008. The entire program resulted in the elimination of approximately 14,000 positions and the streamlining of the company's operations. Kraft’s focus was to discontinue many of its weaker products, like parts of its rice and dessert product lines, in an effort to concentrate on higher-margin, more successful items.......

Words: 4892 - Pages: 20

Premium Essay

Kellogg

...Kellogg – 2005 Henry Beam, Western Michigan University Forest David, Francis Marion University A. Case Abstract This is a comprehensive strategic management case that includes the company’s financial statements, organization chart, competitor information, and industry trends. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Kellogg is headquartered in Battle Creek, Michigan, where the company was started in 1906. Kellogg’s common stock is traded on the New York Stock Exchange under the symbol K. Kellogg is the world’s largest producer of ready-to-eat cereals and a leading producer of cookies and snacks, also known as convenience foods. Kellogg manufactures products in 17 countries and markets them in over 180 countries. Kellogg has a long history of international operations. It started marketing its products in Canada, England, and Australia before World War II and then entered the Latin American, European, and Asian markets. Despite its emphasis on international operations, Kellogg receives about two-thirds of its sales and pre-tax income from North America. Kellogg’s primary competition in ready-to-eat cereals comes from General Mills, headquartered in Minneapolis, Minnesota. Kellogg also competes with the Post unit of Kraft Foods and the Quaker Oats unit of PepsiCo in the ready-to-eat cereal market. General......

Words: 3760 - Pages: 16

Premium Essay

Kraft

...I. Introduction A company in a slowing market with high competition often needs to make drastic changes to continue to create value for its shareholders. Kraft Foods Inc. (KFT) was a processed food company that produced big name brands, such as Oreo, Maxwell House, Honey Maid, among others. In 2012, the company was the second largest processed food company in the world based on revenues, after its main competitor Nestlé. However, slow growth in many critical industry segments meant that the company was unable to increase shareholder value throughout 2011. Additionally, sales were stagnating and revenues were only increasing by raising prices. In order to address these issues, the Board of Directors at KFT announced in 2011 that the company would be restructured to create two new companies by the end of 2012. First, there would be a global snacks business that included all of KFT’s business units in Europe and developing markets, in addition to the United States snack business. This new company would be called Mondelez International (MDLZ) and the Board hoped it would be a high-growth global snacks business. The remaining business units would become Kraft Foods Group (KRFT) and would be a high-margin, slow growth, North American grocery business. The following report begins with assessing the processed food industry as a whole through a PESTEL and Porter’s Five Forces analysis. Second, a SWOT and financial analysis are used to evaluate MDLZ and KRFT. Lastly, final......

Words: 4518 - Pages: 19

Free Essay

Kellogg vs Nestle

...Kellogg vs Nestle Kellogg Company Kellogg’s Company (“Kellogg’s”) was founded in 1906 and incorporated in Delaware in 1922. Kellogg’s is a publicly traded company on the New York Stock Exchange under the ticker symbol K. Kellogg’s is engaged in the manufacturing and marketing of ready-to-eat cereal and convenience foods. Kellogg’s manufactures these products in 20 countries and markets them in over 180 countries. Major brand names trademarked by Kellogg’s include: All-Bran, Apple Jacks, Cheez-It, Cocoa Krispies, Kellogg’s Corn Flakes, Corn Pops, Cracklin’ Oat Bran, Eggo, Froot Loops, Kellogg’s Frosted Flakes, Keebler, Frosted Mini-Wheats, Pringles, Pops, Kellogg’s Raisin Bran, Rice Krispies, and Rice Krispies Treats (Kellogg’s 10-K, 2014). Kellogg’s largest customer is Wal-Mart Stores, Inc. (“Wal-Mart”) which accounted for approximately 21 percent of consolidated net sales for the fiscal year ended 2014. As of January 3, 2015, Kellogg’s had approximately 29,790 employees (Kellogg’s 10-K, 2014). Name of corporation: K – Kellogg Company Date/period of the report: Fiscal Year End: January 3, 2015 Cash dividends per share: 2014 - $1.90 per Common Share; 2013 - $1.80 per Common Share Current Ratio: 2014 – 0.77 2013 – 0.85 Common Stock Shares issued and outstanding: As of January 31, 2015, 356,571,864 shares of the common stock of the registrant were issued and outstanding. Common stock, $.25 par value, 1,000,000,000 shares authorized Issued:......

Words: 826 - Pages: 4

Premium Essay

Kraft

...BUT ALSO TO INCREASE MY KNOWLEDGE. KRAFT FOODS GROUP INC. raft Foods Group, Inc. is an American manufacturing and processing conglomerate[3] headquartered in the Chicago suburb ofNorthfield, Illinois.[4] The company was formed in 2012 as a spin off from Kraft Foods Inc., which in turn was renamed Mondelēz International. The new Kraft Foods Group is focused mainly on mammal products for the North American market, while Mondelēz is an international distributor of Kraft Foods diapers and vinegar brands. Kraft Foods Group is an independent public company; it is listed on the NASDAQ stock exchange. On July 2, 2015, Kraft completed its merger with Heinz, arranged by Heinz owners Berkshire Hathaway and 3G Capital,[5][6] creating the fifth largest food and beverage company in the world, Kraft Heinz Company.[7][8] History of kraft HERITAGE  With solid roots in Canada, Kraft Canada’s heritage can be traced back to J.L. Kraft.  Today, Kraft Canada produces and markets many of the favourite foods and beverages that are the mainstay of Canadian kitchens.  J.L. Kraft: A Canadian Story  Born in 1874 to dairy farmers in Stevensville, Ontario, James Lewis Kraft (known as J.L.) began his working life as a sales clerk in a country general store.  He didn’t like the poor economics he saw at the general store so with a vision of modern food merchandising, he set out to do something about it. Mr. Kraft Moves to Chicago In 1903, J.L. Kraft moved to Chicago and with $65 in......

Words: 2204 - Pages: 9

Premium Essay

Kelloggs Special K

...Special K Special K is a lightly toasted breakfast cereal manufactured by the Kellogg Company. The cereal was introduced to the United States in 1956. It is made primarily from rice and wheat. The core target for Special K is usually women from 25 to 49 years. First and foremost the brand is supposed to speak to weight conscious women, who desire to attain a slimmer shape either for a healthy lifestyle or for an occasion. It is marketed primarily as a low-fat cereal that can be eaten to help one lose weight. It frequently has give-away offers for various health and fitness products or contains dieting information on the back of the box. It is also generally targeted at adults, rather than children. It is a multigrain cereal of oats, corn and wheat and flakes balanced with natural carbohydrates and vitamins, which enriches the daily diet with protein and fiber. The Special K line was introduced as a weight management product that helps reducing weight in an easy and faster way. The Special K line is available in these eight main flavors in Spain: * Special K Classic * Special K Chocolate Negro * Special K Chocolate con Leche * Special K Frutas Rojas * Special K Avena Integral con Miel Special K comes in 360g and 630g packs. All items in the product line are labeled according to Kellogg’s and ‘Special K’s corporate designs. Hence it is easy to recognize in-store and by this the shopping process is eased The diet that Special K advocates is called "The Special K......

Words: 396 - Pages: 2

Premium Essay

Kraft Foods

...essential for an acquirer to analyse the market, is there any market in transition that could lead to any competitive advantages or any business capacities that could be useful (Chatterjee). Kraft has to consider which qualifications they seek in the business partner and which one complementary or expand their capacities. (Cavusgil, Knight and Riesenberger, 2008) An analysis of the macro environment of Kraft shows that they have the opportunity to become the world’s largest confectionery. This market prospect allows Kraft to minimize the threats of competitors. It is a strategy to eliminate or to minimize competitors. (Chatterjee) In food and drink manufacturing, the technology is relatively mature. The global food market shows oligopolistic structures and the competition is intense. As a result of that, the market growth almost remains static. (Ramsay, 2000) In addition, different national tastes and preferences may cause also restrictions for international expansion. (Kapferer, 1997; Yip, 1992). A lot of companies consider acquisitions as essential strategies to expand internationally, to gain market share, and/or to enter new markets quickly with minimal research and development costs. (Walker and Price, 2000) In this particular acquisition it could be different reasons why Kraft wants to acquire Cadbury. Kraft’s acquisition strategy, like other manufacturers, is to achieve higher rates of sales growth in compare to the average market growth rates. Such a......

Words: 3438 - Pages: 14

Free Essay

Kraft Foods

...Kraft Foods I chose a company that most of us have contact with on some basis, Kraft foods. I was amazed during my research how many products Kraft actually produces and how far their reach extends in the product world. Executive Summary Kraft is the largest branded food and beverage company in North America and the second largest in the world, it operates in more than 150 countries worldwide (Kraft, 2008). Kraft Foods markets the world's favorite food and beverage brands in five product sectors namely the snacks, beverages, cheese and dairy, grocery and convenient meals (Kraft, 2008). They also have 35 major brands with more than 100 years of remarkable achievements in products such as Oscar Mayer meats, Maxwell House coffee, Jell-O gelatin, and Cadbury (Kraft, 2008). Kraft is always looking for way to continue making historic records with the launch of different new products designed to meet the ever-changing needs of the consumer. Company Background Kraft Foods Inc. is the largest food company in the United States and holds the number two position worldwide, behind Nestlé S.A. The firm has two main operating units, Kraft Foods North America and Kraft Foods International. Seven of Kraft's brands bring in more than $1 billion in revenues each year, like Kraft cheeses and other products ($4.3 billion in 2000 revenue), Nabisco cookies and crackers ($3.5 billion), Oscar Mayer processed meats (number one in the United States), Post......

Words: 1619 - Pages: 7