Morningstar Rating

Stock Research and Analysis

by Erin Lash, CFA

Bulls Say

Private-label competition is minimal in the confectionery aisle, as these lower-priced value offerings only control about 5% of the global market.
Sales generated from new products launched in the past three years amounted to nearly 14% in 2013, which is up 50 basis points over the prior year, providing evidence of Mondelez's commitment to bringing new products to market that win with consumers.
A majority of the production lines on its home turf are more than 60 years, which should aid in achieving management's target of 500 basis points of margin improvement in North America by 2016. Read more 

Bears Say

Compounding the challenges facing the gum business, Hershey is trying to prompt retailers to shrink the shelf space afforded to gum in favor of expanding the candy assortment, which would further delay a turnaround in the category.
Mondelez has lost its momentum in China, as retailer destocking and slowing biscuit category growth is hampering the firm's results.
Persistant economic and political challenges continue to plague Argentina and Venezuela, from which Mondelez derives a combined $1.6 billion in sales annually. Read more 

Management

Before the split of its operations into its North American grocery and global snacks business, we perceived Kraft's stewardship of shareholder capital to be standard. As an independent organization, we think Mondelez is continuing down the path of optimizing   Read more 

Profile

Following the spin-off of its North American grocery operations in the fall of 2012, Kraft's global snacks business was renamed Mondelez International. The firm is a leading   Read more 

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