We recently compiled a list of the 10 Best Cookies and Crackers Stocks to Buy. In this article, we are going to take a look at where Mondelez International, Inc. (NASDAQ:MDLZ) stands against the other cookies and crackers stocks.
The Global Cookie and Cracker Market
The global cookie and cracker market was valued at $100.2 billion in 2023 and is expected to grow to $122.45 billion by 2030, growing at a compound annual growth rate of 3.7% during the forecast period between 2024 and 2030. Region-wise, North America dominates the market with the United States and Canada as its top markets. With significant markets in the United Kingdom, Germany, and France, Europe follows. Simultaneously, Asia Pacific is depicting rapid growth with significant market expansion in countries such as China and India.
What is the Global Snacking Industry Looking Like?
According to Mondelēz International’s annual State of Snacking Report 2023, consumers continue to snack strong as 6 in 10 global consumers surveyed for the last 5 years have been consistently of the opinion that they tend to eat many small meals throughout their days instead of few large ones while young people look forward to the snacks in their day, more as compared to the meals. Younger consumers tend to snack once or more a day. Across all ages, the majority have ritualized snack time as they consume a snack at a special moment or time of the day.
Consistent snack spending is evident from the fact that two-thirds of consumers have not made significant changes to their spending on snacks although they are more conscious of price. Recently, consumers have cut back spending on non-essential items which has negatively impacted sales for Starbucks and McDonald’s. However, the threat doesn’t seem major to the snacking industry as snacking giants still see snacking as a large, attractive, and durable category that continues to grow in importance with consumers.
A piece of important news surfacing in the market just before the year’s end, as reported by CNBC, is that the Oreo maker has made a preliminary takeover approach for Hershey according to those familiar with the matter. The company had previously made a takeover bid for Hershey in 2016 which Hershey’s board unanimously rejected. The acquisition, if it takes place, is going to result in one of the biggest confectionery companies globally. While the combined business could be a huge deal, the question about it competing against the recent Mars’ acquisition of Kellanova which is expected to materialize in the coming year, is circulating all around. This acquisition is a great deal in the global snacking market as well since it ranks among the top 10 global food and beverage mergers and acquisitions since 1995, as revealed by Dealogic.
Our Methodology:
In order to compile a list of the 10 best cookies and crackers stocks to buy, we went through stock screeners, relevant ETFs, and media reports to make a list of relevant stocks. Moving on, we shortlisted the top 10 stocks from our list which had the highest number of hedge fund holders. The 10 best cookies and crackers stocks to buy have been arranged in ascending order of their hedge fund holders, as of Q3.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A colourful array of products like candies, chocolates and gums on a supermarket shelf.
Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 51
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the largest snack companies globally. The firm empowers people to snack right in more than 150 countries while it has operations in more than 80 countries. Mondelez owns a variety of popular cookie and cracker brands including Oreo, Chips Ahoy!, Ritz, LU, Wheat Thins, and Triscuit among others.
Mondelez is a snacking leader with global net revenues of approximately $36 billion in 2023. The strong position in key snack markets, leadership in resilient categories, and a compelling footprint are clear competitive advantages for Mondelez International, Inc. (NASDAQ:MDLZ). The company leads the future of snacking with iconic global and local brands. It has the privilege of having the top global position in biscuits (cookies and crackers) and the highest market share among biscuit manufacturers across the globe. Simultaneously, the company is on track to reach the top position in chocolate.
The snacking market dynamics tend to favor the long-term growth potential of Mondelez International, Inc. (NASDAQ:MDLZ) as more consumers have started to snack daily and still prioritize snacks despite being price-conscious. Furthermore, the attractive exposure to high-growth emerging markets and robust developed markets increases growth potential. Mondelez believes in sustaining long-term profitable growth by accelerating and increasing focus on the core of chocolate and biscuits and expanding its presence geographically as well as in high-growth channels.
While accelerating its core business, Mondelez continues to strategically reshape its portfolio. For instance, it recently expanded its partnership with Evirth, a leading manufacturer of cakes and pastries in China. This gave the firm a promising opportunity to further leverage its iconic brands and distribution to create more premium offerings in the fast-growing cakes and pastries space.
Overall MDLZ ranks 3rd on our list of the best cookies and crackers stocks to buy. While we acknowledge the potential of MDLZ as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than MDLZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
