Valued at a market cap of $85.8 billion, Mondelez International, Inc. (MDLZ) is a leading global snack food and beverage company. Headquartered in Chicago, Illinois, the company operates across multiple regions and offers a diverse portfolio of products, including biscuits, chocolates, gum, candy, beverages, and cheese & grocery items.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Mondelez International fits this criterion perfectly. Mondelez distributes its products through supermarket chains, wholesalers, club stores, online retail platforms, and direct-to-consumer channels. It has also collaborated with Post Consumer Brands to launch cookie-inspired breakfast cereals.
However, the Oreo cookies, Cadbury chocolate, and Trident gum maker have seen a 12.8% decline from its 52-week high of $76.06. Over the past three months, its shares have risen 4.8%, outperforming the broader Dow Jones Industrials Average's ($DOWI) 3.9% drop during the same period.
Longer term, the packaged snacks company is up 11% on a YTD basis, surpassing DOWI's over 1% return. However, shares of Mondelez have declined 6.4% over the past 52 weeks, lagging behind DOWI’s 11.5% rise over the same time frame.
MDLZ has been in a bearish trend, consistently trading below its 50-day and 200-day moving averages since October last year. Yet, the stock has recently climbed above its 50-day moving average.
Shares of Mondelez International fell 2.3% on Feb. 4 due to a disappointing 2025 profit forecast, expecting a 10% decline on an adjusted basis, significantly worse than analysts' estimates. The company faced margin pressures as surging cocoa prices and higher transportation costs led to a 650-basis-point decline in its adjusted gross profit margin to 31.5%. Additionally, Mondelez reported weaker-than-expected Q4 2024 revenue of $9.6 billion and adjusted EPS of $0.65.
Nevertheless, MDLZ has outperformed its rival, The Hershey Company (HSY), which experienced a 4.5% YTD rise and a 5.6% decline over the past 52 weeks.
Despite Mondelez’s underperformance relative to the Dow Jones over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 24 analysts in coverage, and as of writing, MDLZ is trading slightly above the mean price target of $65.61.
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.
