The company also lowered its full-year EPS growth (on a currency-neutral basis) to 8% to 10%, from its previous guidance of 11% to 13%.
North American cereal sales dipped 13%, and Eggo's troubles drove a 9% decline in N.A. frozen/specialty sales, although snack sales in the region rose 1%.
Kellogg projected a stronger second half, driven by gradual improvement in cereal and modest growth for the recovering Eggo brand, new line extensions and increased advertising. Advertising spend decreased 3% in Q1 but increased 4% in Q2, and an overall percentage increase in the mid single digits is expected for the full year, Kellogg reported.