ConAgra Foods, Inc. (CAG), General Mills, Inc. (GIS): Is Kellogg Company (K) Destined for Greatness?

Kellogg Company (NYSE:K)’s latest quarterly revenue result showed year-over-year growth of 7%, an improvement largely driven by the company’s fairly recent Pringles acquisition. While the company’s breakfast segment tanked in the U.S. and Europe, it has experienced robust growth in Latin America and Asia-Pacific markets. Fool contributor Dan Moskowitz points out that both countries have experienced underwhelming recoveries in the best of cases, which has impeded Kellogg’s overall sales growth in recent quarters. In addition, India, which has a huge market potential, is now suffering the worst currency crisis in its history. However, the Chinese snack-food market, estimated at $12 billion, could be the key to Kellogg’s international prospects.

The competitive cereal industry might be getting a little tighter for Kellogg in other ways. Industry peer ConAgra Foods, Inc. (NYSE:CAG) acquired cereal maker Ralcorp at the end of 2012 for a price of $6.8 billion. This enhanced company has been focusing on new products, but my fellow Fool Rich Smith notes that ConAgra Foods, Inc. (NYSE:CAG) has already posted better revenue growth than Kellogg Company (NYSE:K) over the past five years without the aid of this acquisition. On the other hand, longtime rival General Mills, Inc. (NYSE:GIS) extended its product portfolio further away from cereals, which may be the key to sustaining its industry-leading growth rates.

Putting the pieces together
Today, Kellogg has few of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Kellogg Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes and The Motley Fool have no position in any of the stocks mentioned.

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