Snacking habits picked up during the pandemic aren’t going away.
Kellogg, the owner of Pringles and Cheez-its, is actually seeing snacking accelerate.
Shares of Kellogg jumped more than 7% in midday trading on Thursday after the company topped Wall Street’s earnings estimates and raised its full-year outlook. Net sales rose 5.1% to $3.58 billion, even as the company faced tough comparisons to last year’s pantry stockpiling.
Strong demand for its snacks helped drive the quarter’s sales growth. In North America, Kellogg saw organic revenue of its snacking division rise 3.5%.
“Snacking has not slowed down. In fact, snacking has sped up, so we believe in choice at Kellogg,” CEO Steve Cahillane said on CNBC’s “Squawk on the Street.”
Cahillane said that the company is seeing bifurcated eating trends from consumers. While some are trying to eat healthier by buying plant-based products from Kellogg’s MorningStar Farms, others are turning to more indulgent options.