Mondelez (MDLZ) Stock Forecast & Price Target

Mondelez International has demonstrated strong performance in the snack category, with year-to-date category growth exceeding 4% and the company maintaining or increasing market share in approximately 70% of its categories. Notably, chocolate sales surged by nearly 17% during the quarter, bolstered by a 21% increase in price/mix despite a slight decline in volume, indicating effective pricing strategies. Additionally, Mondelez anticipates further top-line and profit improvements in North America due to projected pricing adjustments set to be implemented in the third quarter, reflecting a favorable outlook for continued revenue growth.

Mondelez International's second quarter earnings per share (EPS) of $0.73 indicate a 12% decline, despite being slightly ahead of estimates due to stronger revenue performance and reduced operating profit margin contraction. The company anticipates a significant gross margin contraction of 450 basis points for the year, impacted by various factors including inefficient U.S. activities and unfavorable cocoa coverage. Additionally, weak biscuit sales, particularly in the U.S., raise concerns about the firm’s ability to maintain growth in its core product segment.