Kellogg Co. (K), the world's largest maker of breakfast cereal, on Monday reported an 11 percent increase in quarterly earnings on strong sales of new products such as a yogurt-flavored Special K (search) cereal and lower food costs.

Third-quarter net income rose to $274.3 million, or 66 cents per share, from $247.0 million, or 59 cents per share, a year ago.

Wall Street (search) analysts had expected the company to report earnings of 61 cents to 68 cents per share with an average view of 64 cents per share, according to Reuters Estimates.

Kellogg's stock trades at about 18 times analysts' average 2006 earnings estimate, compared with an average valuation of 16 times 2006 earnings for companies in the Dow Jones U.S. Food Producers index (search), of which it is a component.