Long-Term Returns of Bill Ackman’s 5 Activist Targets

4. Mondelez International, Inc. (NASDAQ:MDLZ) 

Activist Investment: 2015
Long-Term Returns Since Ackman’s Investment: -4.04%
S&P 500 Gain Since Ackman’s Investment: 22.35%

Mondelez International, Inc. (NASDAQ:MDLZ) is a company that manufactures, markets, and sells snack food and beverage products. It provides biscuits and baked snacks, including cookies and crackers.

In 2015, activist investor Ackman confirmed a 7.5% stake worth $5.5 billion stake in the company.

The investment came when Mondelez International, Inc. (NASDAQ:MDLZ) struggled to impress its financial performance, hampered by a $19 billion purchase of Cadbury. It was under immense pressure to consider the potential sale of the business to PepsiCo’s Frito-Lay brand division.

Ackman was also of the idea that Mondelez International, Inc. (NASDAQ:MDLZ) should consider selling itself as one of the ways of unlocking value. He was also in agreement that the company should pursue aggressive cost-cutting measures.

Nevertheless, the activist investor turned his back on the company in 2018, selling all his stakes and insisting on the need to put the money into potentially more lucrative bets such as Starbucks.