With a market cap of $88.7 billion, Mondelez International, Inc. (MDLZ) is a leading global snack food company based in Chicago, Illinois. The company focuses on producing a wide range of snack and beverage products and operates across multiple regions worldwide.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and snacking powerhouse Mondelez International fits this criterion perfectly, signifying its measurable size, stability, and influence in its industry. MDLZ is renowned for delighting consumers with its extensive portfolio of iconic snack brands like Oreo, Cadbury, and Toblerone globally, driving significant revenue primarily from chocolate, cookies, biscuits, and confectionery products.
Despite that, Mondelez International is down 14.7% from its 52-week high of $77.20, hit on Feb. 2. The company’s shares are down nearly 7.3% over the past three months, underperforming the broader Nasdaq Food & Beverage ETF's (FTXG) 3% dip over the same time frame.
Longer term, MDLZ has experienced a 9.2% decline on a YTD basis, compared to the FTXG's 4% dip. However, shares of Mondelez International have declined 10.1% over the past 52 weeks versus FTXG's 11.9% loss over the same time frame.
MDLZ has been trading below its 50-day and 200-day moving averages since late May, indicating a bearish price trend.
MDLZ has underperformed due to supply chain disruptions, rising input costs, and squeezed profit margins from surging cocoa prices as a major chocolate producer. Moreover, the stock dropped after its Q1 earnings results on Apr. 30, despite topping Wall Street estimates and affirming full-year guidance, primarily due to a 2.1% decline in sales volume that sparked concerns over growth prospects amid elevated investor expectations.
Nevertheless, MDLZ’s rival, The Kraft Heinz Company (KHC) has declined 12.7% on a YTD basis and almost 12% over the past 52 weeks, underperforming MDLZ in both periods.
Despite MDLZ’s relative underperformance, analysts are optimistic about the stock's prospects. The stock has a consensus rating of “Strong Buy” from the 22 analysts covering it, and the stock is currently trading below the mean price target of $80.28.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
