12 Best Chocolate Stocks to Buy According to Hedge Funds

3. Mondelez International Inc. (NASDAQ:MDLZ)

Number of Hedge Fund Holders: 51

One of the Best Chocolate Stocks and a massive snack food firm, Mondelez International, Inc. (NASDAQ:MDLZ), is well-known in the chocolate industry for owning brands including Oreo, Cadbury, Chips Ahoy!, Milka, and others. It is the former snacking section of Kraft Foods (now Kraft Heinz), which sold the company to shareholders in 2012. Since then, the business has expanded its chocolate operations, acquiring the luxury chocolate company Hu in 2021 and the well-known Mexican chocolate and candy company Ricolino the following year.

Despite being a slow grower, this snacking expert has been increasing profitability and cutting costs for the last ten years. As the importance of eating healthily becomes more widely recognized, Mondelez International, Inc. (NASDAQ:MDLZ) has also been increasing its market share in the health food industry. Furthermore, it pays a dividend, which has been increasing steadily ever since it became a stand-alone company.

The business operates in a variety of geographic locations, with emerging countries accounting for 39% of its total sales. These regions have grown at a stunning 13% CAGR over the last five years, due to rising earnings and expanding snacking preferences. The strong customer loyalty and the dominance of Mondelez International, Inc. (NASDAQ:MDLZ) in important categories, such as chocolate (13% global market share) and biscuits (17.5% global market share), on the other hand, give developed countries a secure base. The company is positioned for long-term success due to this balance between rapidly growing regions and slowly developed markets.

In 2024, Mondelez International, Inc. (NASDAQ:MDLZ) produced a solid financial performance, increasing organic net revenue by 4.3%, adjusted gross profit dollars by 5.1%, and adjusted EPS by 13%. The business gave $4.7 billion back to shareholders and produced $3.5 billion in free cash flow. During the course of successful campaigns, iconic brands such as Oreo and Cadbury Dairy Milk were able to sustain strong consumer loyalty. Furthermore, the e-commerce industry had double-digit growth, and next-tier markets expanded by about 35%. It has made remarkable strides in sustainability, sourcing 90% of its cocoa through Cocoa Life, cutting carbon emissions by 38% since 2018, and guaranteeing that 96% of its packaging is recyclable. Moreover, the business maintained or increased its market share by 50% of its revenue base, with significant share gains being driven by Cadbury Dairy Milk and Milka.

Peter Rathjens, Bruce Clarke, And John Campbell’s Arrowstreet Capital was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 3.75 million shares worth $276.39 million as of Q3.