Packaged foods company Kellanova (NYSE: K) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $3.26 billion. Its non-GAAP profit of $0.94 per share was 8.5% above analysts’ consensus estimates.

Is now the time to buy Kellanova? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

With Corn Flakes as its first and most iconic product, Kellanova (NYSE: K) is a packaged foods company that is dominant in the cereal and snack categories.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $12.67 billion in revenue over the past 12 months, Kellanova is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s harder to find incremental growth when your existing brands have penetrated most of the market. For Kellanova to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.

As you can see below, Kellanova struggled to increase demand as its $12.67 billion of sales for the trailing 12 months was close to its revenue three years ago. This is mainly because it failed to grow its volumes.

This quarter, Kellanova’s $3.26 billion of revenue was flat year on year and in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 2.4% over the next 12 months. While this projection suggests its newer products will spur better top-line performance, it is still below the sector average.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

Volume Growth

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

To analyze whether Kellanova generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.

Over the last two years, Kellanova’s quarterly sales volumes have, on average, stayed about the same. This stability is normal as the quantity demanded for consumer staples products typically doesn’t see much volatility. The company’s flat volumes also indicate its average organic revenue growth of 3.7% was generated from price increases.

In Kellanova’s Q3 2025, sales volumes dropped 1.4% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products.

Key Takeaways from Kellanova’s Q3 Results

It was good to see Kellanova beat analysts’ EPS expectations this quarter. On the other hand, its gross margin missed and its organic revenue fell slightly short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock remained flat at $83.05 immediately after reporting.

Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.