Mondelez (MDLZ) Stock Forecast & Price Target

Mondelez International has demonstrated a robust performance with organic sales increasing by 3.4%, although this represents a deceleration due to softer volume/mix dynamics. The company's strong pricing power, with an 8% increase, coupled with its ability to gain or maintain market share in 70% of its categories, underscores its competitive positioning in the snack industry. Furthermore, projections for 2026 indicate expected EPS growth in the high single digits, attributed to lower cocoa costs and improved volume/mix trends, particularly as the company leverages its presence in emerging markets, which account for approximately 40% of its sales.

Mondelez International has revised its 2025 guidance downward, anticipating only 4%+ organic sales growth, adjusted from a previous estimate of approximately 5%, alongside a projected 15% decline in EPS versus a prior estimate of a 10% decrease. The firm reported significant reductions in gross profit and operating profit, which fell by 20.5% and 32.6%, respectively, largely due to rising cocoa costs and contracting margins across its operations. Additionally, the company faces challenges in North America and Europe, driven by eroding consumer confidence and higher price elasticity, which further exacerbates its negative outlook on future financial performance.