K: Kellanova Stock Is S&P 500’s Best Performer for August with 40% Updraft on Mars Takeover

One specific event blasted Kellanova shares up by 40% in August — family-owned Mars will pull the Pringles maker into its orbit for $36 billion.

• Kellanova stock K is the best performer in the S&P 500 for August. The parent of Pringles and Cheez-It added roughly 40% for the month, driven by one single event — an acquisition. Family-owned candy classic Mars announced early in August that it will pay $83.50 per share to take over Kellanova in an all-cash deal valued at $36 billion. The price tag represented a 33% premium to the closing price before the news got to the public.
• The deal is expected to close in 2025 but not without some hindrances along the way. Regulators generally frown upon big-ticket acquisitions as they think it favors the big players in the industry. Mars, the privately-held company behind Snickers and M&M’s, generated $45 billion in revenue in 2022 — more than Coca-Cola’s $43 billion. Kellanova posted $13 billion in sales last year.
• ”Snacking is a large, attractive and durable category that continues to grow in importance with consumers,” Mars said in a statement. Kellanova, on the other hand, has been struggling to keep churning out revenue growth. Declining sales amid increased prices have made the brand lose its appeal while cost-conscious customers pivot to more attractive snacks.