We came across a bullish thesis on Mondelez International, Inc. on Compounding Quality’s Substack. In this article, we will summarize the bulls’ thesis on MDLZ. Mondelez International, Inc.’s share was trading at $61.47 as of February 11th. MDLZ’s trailing and forward P/E were 32.52 and 19.61 respectively according to Yahoo Finance.
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Mondelez International (MDLZ) is a leading global snacking company with a strong presence across biscuits, chocolate, cakes, and snack bars, operating in over 150 countries. The company holds the #1 global position in biscuits with a 17.4% share of a $125 billion market and ranks #2 in chocolate with a 12.3% share of a $134 billion market, while its snack bars and cakes & pastries segments also show meaningful positions in growing categories.
MDLZ’s core snacks categories are expanding faster than broader snacks and food, growing 1.3 times faster, driven by resilient consumer demand and strong brand loyalty. The company’s “Local First” strategy allows regional teams to tailor products and marketing, capturing local tastes and preferences, which supports consistent revenue growth and limits exposure to global macro volatility. Emerging markets provide a structural growth tailwind as rising middle-class incomes increase demand for affordable snack products.
MDLZ benefits from a low-price, high-loyalty revenue model, making it relatively recession-resistant, with iconic brands like Oreo, Cadbury, and Milka sustaining steady sales even during economic downturns. The company also returns capital to shareholders through a 3.5% dividend yield, adding to its appeal for income-focused investors.
Given its leadership positions, resilient business model, and exposure to high-growth markets, Mondelez International represents a compelling bullish investment, with a combination of stable cash flows, strong growth potential, and a durable competitive moat that could drive further valuation upside in the global snacks industry.
Previously, we covered a bullish thesis on Mondelez International, Inc. (MDLZ) by Daan Rijnberk in November 2024, which highlighted the company’s strong brand portfolio, resilient volume growth, and attractive valuation amidst cocoa inflation. MDLZ’s stock price has depreciated by approximately 5.12% since our coverage. Compounding Quality shares a similar bullish view but emphasizes MDLZ’s “Local First” strategy, structural growth tailwinds in emerging markets, and consistent revenue expansion across core snack categories.
Mondelez International, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held MDLZ at the end of the third quarter which was 49 in the previous quarter. While we acknowledge the risk and potential of MDLZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MDLZ and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
