Kellogg Company K reported second-quarter results that came in better than expected as consumers continue to stockpile on food amid the COVID-19 pandemic.
Kellogg reported quarterly earnings of $1.24 per share, which beat the analyst consensus estimate of 93 cents by 33%. The company reported quarterly sales of $3.46 billion, which beat the analyst consensus estimate of $3.3 billion by 5%.
But what's next for the food maker through the end of the year? In Kellogg CEO Steve Cahillane's own words, it's "unknowable."
What Happened: Kellogg's second-quarter report emphasized the pandemic spurred demand for at-home eating but management is now assuming spending will return to a "more normalized environment," Cahillane said on CNBC. This "may or may not happen" although there is no sign of changing consumer habits without a vaccine.
Regardless of any shifts in buying patterns, Kellogg is investing to ensure it remains a relevant brand with consumers. Kellogg is able to safely feed the world due to its highly automated facilities that make social distancing between workers a possibility.
"We are going to do everything we possibly can to come out of this crisis a stronger company than we went into it," he said.
Why It's Important: Strong brands like Kellogg's are resonating well with the consumer and performing well during the pandemic, Cahillane said. Consumers want a brand they are both comfortable with and they can trust.
"So many of our brands have done very well in this environment, but we do think and know it is important to continue to innovate," he said.
Kellogg will introduce a new brand called Incogmeato at a time when consumers will still be looking for new and exciting items. On top of that, the company will bring new flavors to existing brands so consumers can try something new while still enjoying their favorites.
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