A Pure Play Cereal Company?

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 4 October 2023

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

(00:21) Asit Sharma and Dylan Lewis discuss: - How Kelloggs became Kellanova and what to make of its cereal spin-off WK Kellogg. - Food service company Aramark spinning out its uniform business Vestis and why one might be more interesting than the other for investors. - The traps to avoid when looking at spin-outs. (15:51) Ricky Mulvey and Bill Mann check in on Costco – the business, its potential, and its new food court offerings. (27:05) The Motley Fool Money team goes out into the field to taste test Costco’s new roast beef sandwich, mango smoothie, and strawberry ice cream. If you're looking for investing ideas, we’re offering Motley Fool Money listeners a discount on our flagship service, Stock Advisor. To learn more head to fool.com/mfmdiscount Companies discussed: K, KLG, ARMK, VSTS, COST Host: Dylan Lewis Guests: Asit Sharma, Bill Mann, Ricky Mulvey, Sierra Baldwin, Mary Long Engineers: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	We're heading into the spin cycle, Motley Fool Money starts now.
0:21.1	I'm Dylan Lewis and I'm joined over the airwaves by Motley Fool Analyst, Asset Sharma,
0:25.2	Asset.
0:26.2	Thanks for joining me.
0:27.2	Dylan, thank you for having me.
0:29.0	We've got dry ink on two different spin-offs this week.
0:31.8	We're going to be zooming in on both to see what they say about their businesses and what
0:35.4	investors should make of them.
0:37.0	Asset, let's start with the household name, Pantry Staples Kellogg spun out its serial
0:41.2	business separating it from the rest of the company's food brands, including Cheez
0:45.1	It, Pop Tarts, and Frozen Foods like Ego and Morningstar Farms.
0:49.7	This was announced back in the summer of 2022.
0:52.3	What do you think it says about the state of food and consumers right now?
0:56.0	Well, one thing I think this says is that it's really hard to make money in consumer
1:02.2	goods for investors right now because we've got this inflation which seems to be persistent.
1:08.6	We've got huge multinational conglomerates that have trouble in the best of times finding
1:14.0	revenue traction.
1:15.0	So, I think this is a response to some investor angst over investing in this space.
1:22.1	Like, multinationals are looking where they can unlock value, looking for where they
1:26.2	can unlock value, and this deal makes a lot of sense in that vein to me.
1:30.7	Diving into the details a little bit, the serial brands are now going to be housed under
1:34.4	the WK Kellogg name which will trade under the ticker KLG.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.