Headquartered in Chicago, Illinois, Mondelez International, Inc. (MDLZ) is a significant snack and food industry player with a substantial market presence. With a market cap of $92.2 billion, Mondelez offers a diverse portfolio of beloved brands across categories like biscuits, chocolate, gum, candy, and powdered beverages, supporting innovation and consumer satisfaction worldwide.
MDLZ has significantly underperformed the broader market over the last year. The stock has declined 2.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.8%. In 2024, the stock is down 8.4%, compared to SPX's 24.2% gains on a YTD basis.
Furthermore, MDLZ underperformed the First Trust Nasdaq Food & Beverage ETF (FTXG). The exchange-traded fund has gained 4.9% over the past 52 weeks compared to MDLZ’s loss during the same period.
Mondelez International has underperformed the broader market and has lagged behind its peers due to challenges in adapting to changing consumer preferences and increased competition in the snack food industry.
On Oct. 29, Mondelez International reported Q3 earnings results. The company’s net revenue increased 1.9%, boosted by 5.4% organic growth, despite impacts from a recent gum business divestiture and currency fluctuations.
Gross profit and operating income declined due to unfavorable derivative impacts and ERP costs, though adjusted margins improved on higher pricing and productivity. The company reaffirmed its 2024 outlook, expecting high single-digit EPS growth and over $3.5 billion in free cash flow. The stock gained marginally in the session following the day the results were released.
For the current fiscal year, ending in December, analysts expect Mondelez’s EPS to grow by 9.4% to $3.49 on a diluted basis. The company has consistently exceeded consensus estimates in the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 20 “Strong Buy” ratings, one “Moderate Buy,” and one “Hold.”
This configuration is less bullish than three months before, with 19 analysts suggesting a "Strong Buy" rating.
On Nov. 6, Bank of America Securities analyst Peter Galbo maintained a “Buy” rating for Mondelez.
The mean price target of $81.14 represents a premium of 22.3% to MDLZ's current levels. The Street-high price target of $92 suggests an upside potential of 38.6%.
On the date of publication, Rashmi Kumari 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.
