Mondelez (MDLZ) Stock Forecast & Price Target

Mondelez International has demonstrated strong performance, with categories growing over 4% year to date and the company holding or gaining market share in approximately 70% of those categories. Notably, chocolate sales surged nearly 17% in the latest quarter, driven by a 21% increase in price/mix, despite a small decline in volume. The firm anticipates further improvements in top-line revenue and profitability in North America due to forthcoming pricing adjustments in the third quarter, coupled with an overall organic sales increase of 5.6%, showcasing resilience in its financial metrics.

Mondelez International reported a second-quarter EPS of $0.73, reflecting a 12% decline compared to the prior year, despite slightly stronger revenue performances and reduced operating profit margin contraction due to lower selling, general, and administrative expenses. The company anticipates a significant gross margin contraction of 450 basis points for the year, driven by various factors including unfavorable cocoa coverage and operational inefficiencies in North America. Additionally, weak biscuit sales, particularly in the U.S. market, further contribute to the negative outlook on the firm’s financial health.