Kellanova (K) Stock: Trading Flat as Shareholders Await $83.50 Mars Payout

TLDR

• Kellanova steadies near $83 as Mars buyout limits stock momentum.
• Mars deal drives muted trading; investors eye regulatory clearance.
• Q3 sales up 0.9%, but profits dip on mark-to-market headwinds.
• Africa noodles fuel growth as North America, Europe stumble.
• No forward guidance as merger prep shifts focus to integration.

Kellanova(K) stock traded near flat today, hovering just above $83.00 and closing the session at $83.07.

Kellanova, K

The price reflected market stabilization following its third-quarter earnings release and the pending acquisition by Mars, Incorporated. With the proposed $83.50 per share buyout, the current trading activity suggests market participants are pricing in limited upside.

The definitive acquisition agreement, announced in August 2024, moved forward after shareholder approval on November 1, 2024. The all-cash deal, subject to regulatory and customary closing conditions, is expected to close by the end of 2025. Until then, market action is likely to remain muted, reflecting the fixed premium and uncertainty tied to closing timelines.

Kellanova will not issue forward-looking guidance due to the pending merger. This signals an operational shift while the company prepares to integrate into Mars. With most speculative drivers removed, stock movement is now closely linked to deal progress and regulatory milestones.

Earnings Fall Short on Mark-to-Market Declines

Kellanova reported a slight year-over-year sales increase of 0.9%, reaching $3.26 billion in the third quarter of 2025. This growth came mainly from volume gains in the Africa noodles business and favorable foreign exchange movements. However, softness across snacks, cereals, and frozen foods partially offset those improvements.

Operating profit dropped 0.6% to $452 million, primarily due to reduced mark-to-market benefits compared to the prior year. Despite cost discipline and reduced restructuring charges, earnings per share decreased by 16.2% to $0.88. On an adjusted basis, earnings per share rose modestly by 3.3% to $0.94.

Year-to-date figures revealed declining momentum, with reported net sales falling 0.8% and operating profit down 1.6%. Free cash flow stood at $320 million, influenced by higher pension contributions and timing of capital expenditures. These results reflected category-wide headwinds and inflationary pressures across global markets.

Africa Delivers Growth as Other Regions Lag

The Asia-Pacific, Middle East, and Africa region delivered the strongest performance, driven by 14% sales growth and expanded margins. Africa’s noodle business continued to outperform, fueled by volume gains and past pricing strategies. Adjusted operating profit in the region grew 4%, supporting the company’s earnings stability.

North America posted a 3% sales decline in the third quarter, though operating profit rose by 15% due to cost reductions and lower incentives. Year-to-date adjusted profit fell by 5%, confirming persistent weakness in snacks and frozen categories. Market saturation and demand softness remain a challenge.

Europe and Latin America underperformed, each reporting lower volumes and profit contraction. Europe’s adjusted operating profit declined by 22% as network optimization costs weighed on margins. Latin America’s earnings dropped by 37% due to soft demand and restructuring expenses, especially in the cereal category in Mexico.

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