Kellogg's shares are at their peak on their worst day in two decades, after the company cut its earnings and earnings outlook for the full year on Wednesday.
Sales of its largest snacks business fell 3.5 percent. While the company changed its model for delivering snacks last year to cut costs, transportation costs were a burden for Kellogg due to a lack of truck drivers in the US.
Net income increased to $ 380 million or $ 1.09 per share for the quarter. compared to $ 288 million, or 83 cents a year earlier. According to data compiled by Refinitive, the company achieved $ 1.06 per share, apart from certain unique positions, compared to Wall Street estimates.
The company generated $ 3.47 billion in revenue for the quarter ($ 3.25 billion a year ago) exceeding $ 3.42 billion.
"The most difficult thing to do in consumer goods is the return to sales," said Steve Cahillane, CEO of Kellogg, on Wednesday's win.
"Could we have pulled back a bit in the third quarter and made more profit?" he said. "Yes, of course, but we now rely on investments."