Shares of Kellogg Co. (NYS:K) dropped 1.2% in afternoon trading Tuesday, after the cereal and convenience foods company said that the 1,400 hourly employees at its four cereal plants have rejected the tentative agreement for a new five-year contract. That means the nearly two-month long strike will continue at the plants in Battle Creek, Mich., Omaha, Neb., Lancaster, Penn. and Memphis, Tenn. "While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity," said Chris Hood, president of Kellogg North America. "The prolonged work stoppage has left us no choice but to continue executing the next phase of our contingency plan including hiring replacement employees in positions vacated by striking workers." The stock has gained 1.8% over the past three months, while the SPDR Consumer Staples Select Sector ETF (PSE:XLP) has tacked on 1.5% and the S&P 500 (S&P:SPX) has advanced 3.8%.
Dec. 7, 2021, 1:46 p.m. EST