Valued at a market cap of $76.1 billion, Mondelez International, Inc. (MDLZ) makes and sells a broad range of biscuits, chocolates, and snack foods across markets worldwide. From Oreo and Ritz to Cadbury, Milka, and Toblerone, the Chicago-based food giant has built a global snack empire spanning some of the world’s best-known treats.
Mondelez is set to report its fiscal Q3 earnings in the near term. Wall Street expects EPS of $0.71, down 2.7% from $0.73 per share a year earlier. Still, Mondelez has a strong recent track record, beating analysts’ bottom-line estimates in each of the past four quarters.
For the current fiscal year, ending in December, analysts expect MDLZ to report a profit of $3.05 per share, representing a 4.5% increase from $2.92 per share in fiscal 2025. Furthermore, its EPS is expected to grow 10.8% year over year to $3.38 in fiscal 2027.
MDLZ has declined 5.1% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 16.2% return and the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 4.5% uptick over the same time period.
MDLZ has trailed the broader market as higher cocoa and other input costs, aggressive pricing, and weakening volumes have put pressure on both demand and profitability. After raising prices to offset soaring commodity costs, Mondelez has seen unit sales decline over the past two years, suggesting consumers are becoming more price-sensitive. At the same time, the company’s expected 2.6% sales growth over the next 12 months points to a slower growth trajectory.
On the bright side, MDLZ shares rose 1.5% on Sept. 22 after Mondelez unveiled Toblerone Diamond Truffles with Biscoff, a new premium chocolate collaboration with Lotus Bakeries. The diamond-shaped truffles combine Toblerone milk chocolate, Biscoff spread, and honey-almond nougat, targeting rising demand for premium, innovative confectionery.
Wall Street analysts are moderately optimistic about MDLZ’s stock, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, 13 recommend "Strong Buy," two indicate "Moderate Buy,” and eight suggest "Hold." The mean price target for MDLZ is $68.55, indicating a 15.4% potential upside from the current levels.
On the date of publication, Kritika Sarmah 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.