Chicago, Illinois-based Mondelez International, Inc (MDLZ) manufactures, markets, and sells snack food and beverage products. Valued at $77.5 billion by market cap, the company offers a wide range of products such as biscuits, baked snacks, chocolates, gums, candies, cheese, and powdered beverages under brands like Oreo, Ritz, LU, CLIF Bar, Tate’s Bake Shop, Cadbury Dairy Milk, Milka, and Toblerone.
Shares of this global snacking giant have considerably underperformed the broader market over the past year. MDLZ has declined 24% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.7%. In 2025, MDLZ stock is down 2.9%, compared to the SPX’s 2.7% rise on a YTD basis.
Narrowing the focus, MDLZ’s underperformance is apparent compared to the First Trust Nasdaq Food & Beverage ETF (FTXG). The exchange-traded fund has declined about 6% over the past year. Moreover, the ETF’s 2.2% dip on a YTD basis outshines the stock’s losses over the same time frame.
MDLZ's underperformance can be attributed to persistent input cost pressures, driven by soaring cocoa prices. Additionally, the company has struggled to adapt to evolving consumer preferences and increasing competition in the snack food industry, further weighing on its performance.
On Oct. 29, MDLZ shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.99 exceeded Wall Street expectations of $0.85. The company’s revenue was $9.2 billion, beating Wall Street forecasts of $9.1 billion.
For the current fiscal year, ended in December 2024, analysts expect MDLZ’s EPS to grow 7.8% to $3.44 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering MDLZ stock, the consensus is a “Strong Buy.” That’s based on 16 “Strong Buys” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is less bullish than a month ago, with 19 analysts suggesting a “Strong Buy.”
On Jan. 31, Piper Sandler Companies (PIPR) analyst Michael Lavery downgraded to a “Hold” rating and lowered the price target on MDLZ to $63, implying a potential upside of 8.6% from current levels.
The mean price target of $72.61 represents a 25.2% premium to MDLZ’s current price levels. The Street-high price target of $84 suggests an upside potential of 44.9%.
