Oct 31 (Reuters) - Packaged food company Kellanova ( K )

topped Wall Street estimates for third-quarter sales on

Thursday, driven by resilient demand for its ready-to-eat

breakfast items and snacks despite rising prices.

WHY IT IS IMPORTANT

The Cheez-It maker has capitalized on its brand strength to

steadily raise product prices over the past few years to

strengthen its margins.

Higher prices, however, have not dented demand for its

products unlike packaged food peers such as Kraft Heinz ( KHC )

and Conagra Brands ( CAG ), which reported disappointing sales

earlier this month as customers traded down to cheaper

alternatives.

CONTEXT

Packaged foods giant Kellogg Company spun off its North

American cereal business into WK Kellogg and rebranded

itself as Kellanova ( K ) in October last year.

In August, Family-owned candy giant Mars said it would buy

Kellanova ( K ) for nearly $36 billion, bringing together brands such

as M&M's, Snickers, Pringles and Pop-Tarts, as they bet on

continued consumer indulgence in branded snacks amid stalling

growth in the packaged food sector.

Kellanova ( K ) said on Thursday that due to the pending merger

with Mars, it would not be providing forward-looking forecast.

BY THE NUMBERS

A let-up in costs tied to transportation, raw materials and

labor has helped the company boost its adjusted gross margin to

35% in the third quarter from 33.2% a year earlier.

Net sales of $3.23 billion in the three months ended Sept.

28 beat analysts' expectation of $3.16 billion, according to

data compiled by LSEG.

Kellanova ( K ) posted an adjusted profit of 91 cents per share in

the quarter, also surpassing expectations of 85 cents.