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.
Given no single country accounts for more than 7% of consolidated sales, Mondelez has minimized its exposure to volatile political and economic environments that plague emerging markets.
Mondelez holds the top spot in the global biscuits, chocolate, and candy category, reflecting its solid brand portfolio--including nine brands (including Oreo, Nabisco, Cadbury, Trident, and Tang) that each generate more than $1 billion in annual sales. Read more 

Bears Say

We believe the gum segment will take longer to turn around than the market expects, potentially putting near-term revenue growth trends below management's long-term goals and acting as a possible downside stock catalyst.
With 80% of its sales derived outside of North America, Mondelez is subject to volatile foreign currency movements, which could negatively affect reported results.
Because tastes and preferences for snack offerings vary around the world, Mondelez will need to invest to understand the local consumer, rather than just launching products that worked in its home market. 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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