- Kellogg’s revenues rose 5.1% to US$3.58 billion in the first quarter of 2021, compared to US$3.41 billion in the year-ago period.
- Kellogg’s organic net sales rose 4.2% to US$3.55 billion during the quarter.
- The AB InBev stock was up 6.2% to US$75.00 at the market close on Thursday, May 6.
Manufacturers of fast-moving goods may be pinning their hopes on a robust consumer spending spree in the coming months. The US government’s massive stimulus spending amid signs of recovery drives demand for various goods, from food, beverages to cars and electronic items.
Consumer spending in the US has increased in recent months as the economic activities started to grow. The labor market also has witnessed significant improvement since March as hiring resumed. These developments give hope to businesses that a broader recovery may be in the offing soon.
Here are two stocks that may benefit from the growing economic activities and consumer spending.
Pic Credit: Pixabay.
Kellogg Company (NYSE:K)
Consumer Non-Durables company Kellogg is a leading global manufacturer of food products headquartered in Battle Creek, Michigan. It manufactures a variety of cookies and cereal products along with other packaged food items. Founded in 1906, the company operates on all five continents.
Its top brands are Frosted Flakes, Rice Krispies, Pringles, and Pop-Tarts, etc.
Kellogg released its Q1 earnings report on Thursday, May 6.
Kellogg’s revenues rose 5.1% to US$3.58 billion during the quarter, compared to US$3.41 billion in the year-ago period. Its organic net sales rose 4.2% to US$3.55 billion.
Adjusted operating profit surged 13.3% to $US497 million, compared to US$439 million in the same period a year ago. Adjusted diluted earnings per share were up 12.1% to $US1.11, compared to the corresponding period in the previous year. The stock was up 7% to US$67.53 at the market close on Thursday. Its value increased around 9% year-to-date.
Pic Credit: Pixabay.
Anheuser-Busch InBev (NYSE:BUD)
AB InBev is the world’s largest brewer headquartered in Hoegaarden, Belgium. It is also one of the top five consumer goods companies globally and owns some of the world’s leading beer brands.
The stock was up 6.2% to US$75.00 at the market close on Thursday, May 6. It gained 9% in value YTD. AB InBev has launched a sustainable supply chain project in collaboration with other companies. The project, dubbed 100+ Accelerator, will focus on solving supply-chain challenges while at the same time addressing the issues of sustainable agriculture and climate change.
According to the company, some 36 businesses are currently part of the project in 16 countries. They together raised around US$200 million to help achieve the goals. Unilever, Colgate-Palmolive, and Coca-Cola are also part of the initiative.