Kellogg Company Announces Share Repurchase Authorization

Rhea-AI Summary

Kellogg Company (NYSE: K) has approved a new share repurchase authorization of up to $1.5 billion, effective from January 1, 2023, to December 31, 2025. This initiative aims to counteract dilution from options exercises and stock grants while returning cash to shareholders. The previous authorization of $1.5 billion expired on December 31, 2022. Kellogg emphasizes that these buybacks reflect its commitment to enhance shareholder value and support its stock price.

Positive

• Share repurchase program of up to $1.5 billion may enhance shareholder value.
• The initiative shows Kellogg's commitment to returning cash to shareholders.

Negative

• None.

BATTLE CREEK, Mich., Dec. 12, 2022 /PRNewswire/ -- Kellogg Company (NYSE: K) today announced that its Board of Directors has approved a share repurchase authorization of up to $1.5 billion, under which the Company may buy back Kellogg shares at its discretion from January 1, 2023, through December 31, 2025.

The Company uses buybacks as a way to offset dilution from options exercises and other stock grants, as well as to opportunistically return cash to share owners.  Its previous $1.5 billion authorization expires on December 31, 2022.

Forward-Looking Statements Disclosure

This news release contains "forward-looking statements" about share repurchases. These statements are made on the basis of the Company's views and assumptions as of this time and the Company undertakes no obligation to update this statement unless required by law.  This statement is not a guarantee of future performance; and actual events or results may differ materially from this statement. Investors should consult the Company's filings with the Securities and Exchange Commission (including the information set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021) for information about certain factors that could cause such differences. Copies of these filings may be obtained upon request from the Company's Investor Relations department or on the Company's web site at http://www.kelloggcompany.com."

About Kellogg Company

At Kellogg Company (NYSE: K), our vision is a good and just world where people are not just fed but fulfilled. We are creating better days and a place at the table for everyone through our trusted food brands. Our beloved brands include Pringles®, Cheez-It®, Special K®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®, MorningStar Farms® and more. Net sales in 2021 were nearly $14.2 billion, comprised principally of snacks and convenience foods like cereal, frozen foods, and noodles. As part of our Kellogg's® Better Days ESG strategy, we're addressing the interconnected issues of wellbeing, climate and food security, creating Better Days for 3 billion people by the end of 2030.  Visit www.KelloggCompany.com.

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SOURCE Kellogg Company

FAQ

What is the purpose of Kellogg's $1.5 billion share repurchase authorization?

The share repurchase authorization aims to offset dilution from options exercises and return cash to shareholders.

When does Kellogg's share repurchase program start and end?

Kellogg's share repurchase program begins on January 1, 2023, and ends on December 31, 2025.

How much was Kellogg's previous share repurchase authorization?

The previous share repurchase authorization was also $1.5 billion, which expired on December 31, 2022.

What impact could Kellogg's buyback program have on the stock price?

The buyback program may potentially support Kellogg's stock price and enhance shareholder value by reducing the number of outstanding shares.