NEW YORK (AP) — Kellogg said Tuesday that its third-quarter profit rose 2 percent as sales of its Eggo waffles and Pringles chips rose around the world, offsetting falling cereal sales.
Its earnings and revenue for the quarter beat Wall Street expectations, and Kellogg's stock soared 6 percent.
Kellogg and other packaged food makers have struggled to boost sales recently as more people avoid processed food. But the company said that sales of its frozen food products, including Eggo waffles and Morningstar Farms veggie burgers, rose in North America. And Pringles showed growth in Europe and some other parts of the world. As for falling cereal sales, Kellogg is working on tweaking some of its brands to appeal to adults today. It will launch a Special K cereal made with probiotics late this year, and a Raisin Bran cereal made with banana will come out next year.
Earlier this month, the company said it would buy protein-bar maker RXBar, a move to offer less sugary foods. New CEO Steven Cahillane said Tuesday that the company is open to more acquisitions, but that its focus is on expanding its existing brands, which include Frosted Flakes, Pop-Tarts and Froot Loops.
The company reported net income of $297 million, or 85 cents per share, in the three months ending Sept. 30. Adjusted earnings came to $1.05 per share, far above the 93 cents per share that analysts expected, according to Zacks Investment Research.
In the same period a year ago, the company reported net income of $292 million, or 82 cents per share.
Revenue rose slightly to $3.27 billion in the period, exceeding analyst forecasts of $3.21 billion.
Kellogg said it expects full-year earnings in the range of $4 to $4.06 per share.
Shares of Kellogg, which are still down about 15 percent this year, rose $3.60 to $62.47.