7 Best Confectionery, Cookie and Snack Stocks To Buy

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

Number of Hedge Fund Holders: 47

Mondelez International, Inc. (Nasdaq:MDLZ) is a global powerhouse in the snacking industry, serving over 150 countries worldwide. The company boasts well-known brands, including Ritz, LU, Clif Bar, and Tate’s Bake Shop, alongside beloved chocolates like Cadbury Dairy Milk, Milka, Toblerone, and Oreo.

In Q2 2024, Mondelez International, Inc. (NASDAQ:MDLZ) reported a 1.9% dip in net revenue to $2.8 billion, largely due to unfavorable currency impacts and the 2023 divestiture of its gum business. However, organic net revenue grew by 2.5%, driven by effective pricing strategies. EPS rose 25% to $0.86, boosted by product innovations and strong investments in emerging markets. Revenue growth in emerging markets was solid at 4.5%, while developed markets grew by 1.2%, supported by rising consumer confidence.

Furthermore, free cash flow generated was $1.5 billion, showcasing a healthy liquidity position that enabled Mondelez International, Inc. (Nasdaq:MDLZ) to raise its dividend by 11%, which makes MDLZ one of the best food stocks on our list. Looking forward, the company plans to strengthen its core categories—chocolate, biscuits, and baked snacks.

In September 2024, Mondelez International, Inc. (Nasdaq:MDLZ) announced the selection of 10 companies for its second CoLab Tech accelerator program, focusing on innovative technologies in snacking. These include advancements in cocoa processing, well-being snacks, sustainable packaging, and sensory experiences.

Now turning to price movement, the stock experienced a 9.46% increase over the past month and a 4.06% rise YTD. This growth is largely due to the company’s strategic divestitures and acquisitions. Additionally, cost-saving measures under the Simplify to Grow Program further strengthen the company’s position for continued growth.

Despite strong Q2 results, Mondelez International, Inc. (Nasdaq:MDLZ) faces challenges with the U.S. biscuit segment softness, rising cocoa costs, and competitive pressures in markets like India, which may impact profitability going forward.

However, analysts have projected an upside potential of 5.68% from the current price of $75.31. As of Q2 2024, 47 hedge funds, holding a combined investment of $1.6 billion, remained bullish on the stock, as per Insider Monkey’s database.