Market Overview

Packaged Foods Broadly Lower On Weak Results From Kraft, Kellogg

Warren Buffett Is Betting Big On Consumer Staples
Organic Food Goes Mainstream

Packaged foods shares were broadly off Thursday after two major players posted sharp second-quarter profit declines.

Kellogg (NYSE: K) profits sank 16 percent on slowing cereal sales, while Kraft Foods' (NASDAQ: KRFT) revenue was nearly flat and its weak earnings growth missed expectations.

"There's no question that economic and consumer trends are creating top-line growth challenges for the food and beverage industry," Kraft CEO Anthony Vernon said in a statement that accompanied its earnings report.

Kraft was down 4.2 percent to $54.82, while Kellogg dropped four percent to $61.16.

Tyson Foods (NYSE: TSN) fell two percent and former Kraft snack unit Mondelez International (NASDAQ: MDLZ) was off a more modest one percent.

Inventure Foods (NASDAQ: SNAK) sank 3.5 percent

Diamond Foods (NASDAQ: DMND) dropped 2.25 percent and Post Holdings (NYSE: POST) settled down 1.25 percent.

Posted-In: Earnings News Hot Intraday Update


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