5. Mondelez International, Inc. (NASDAQ:MDLZ)
Upside Potential: 6.34%
Number of Hedge Fund Holders: 55
A global leader in the sugar-based food sector, Mondelez International, Inc. (NASDAQ:MDLZ) offers an extensive portfolio that includes some of the most well-known sweet brands in the world, including Oreo, Chips Ahoy!, Cadbury Dairy Milk, and Toblerone. As the demand for sweet treats from consumers around the world continues to rise, Mondelez has maintained a strong presence in the chocolate, biscuit, and confectionery industries.
The steady customer demand for Mondelez’s sugar-based goods drove the company’s 4.3% organic net revenue growth in the year ended December 31, 2024. The company effectively implemented pricing strategies despite growing input costs, increasing gross profit by 5.1%. A significant contributor to this expansion was emerging markets, where revenue increased 6.2%.
Furthermore, Mondelez International, Inc. (NASDAQ:MDLZ) returned $4.7 billion to shareholders in dividends and share buybacks, demonstrating its sound financial standing. The board recently announced a $0.47 quarterly dividend per share, payable April 14, 2025. Thus, strong investor confidence in Mondelez’s portfolio was reinforced by this impressive performance, which helped the company’s shares rise 10.72% YTD.
Moreover, Mondelez International, Inc. (NASDAQ:MDLZ) has explored new products and strategic alliances to broaden its market reach. Its multi-year collaboration with Inter Miami CF was one noteworthy step that enabled the company to reach a wider audience with its well-known brands, such as Ritz and Oreo. Furthermore, Mondelez has used new pricing-packaging strategies to reach a wider audience. For example, it has created new stack packs for Oreo, Ritz, and Chips Ahoy! that offer convenient serving sizes at different price points. By acquiring a majority stake in Evirth, the company has also continued to diversify its portfolio, most notably into China’s growing market for frozen-to-chilled baked snacks.
Mondelez International, Inc. (NASDAQ:MDLZ) still faces challenges despite its achievements. Most notably, the fluctuating price of cocoa has had a significant impact on the pricing of its chocolate products. In order to manage these cost challenges, the company is implementing efficiency measures and systematic pricing adjustments. Despite these challenges, Mondelez maintains its strategic position in the sugar sector by making ongoing investments in product innovation, distribution, and brand expansion.
