Mondelez International (MDLZ): Resilient Global Brands with Room to Run
Mondelez International (NASDAQ: MDLZ), the maker of Oreo, Cadbury, Ritz, and Toblerone, continues to show strong positioning in the consumer staples space—especially in a year when many large-cap peers are struggling to grow.
Despite facing sharp cocoa-related cost inflation in 2025, Mondelez has executed aggressive pricing strategies—particularly in its European chocolate segment—without triggering the kind of consumer pullback some expected. That pricing strength has helped stabilize 2025 earnings estimates, even as softness in the U.S. food sector continues to drag on the category.
Looking ahead, the outlook becomes more favorable. Inflationary pressures are expected to ease meaningfully in 2026, which sets Mondelez up for a potential margin recovery. The company’s ability to hold its pricing while input costs come down could lead to stronger-than-expected profitability going forward.
Mondelez is also pursuing growth through international expansion and a proactive M&A strategy, giving it additional levers beyond pricing and cost controls. These growth drivers stand out in the large-cap staples sector, where true top-line expansion is increasingly rare.
Wells Fargo recently upgraded the stock to Overweight and raised its price target to $78, citing superior execution, favorable positioning, and improving fundamentals. That target implies nearly 14% upside from recent trading levels.
For investors looking for steady exposure to global consumer brands with pricing power and a path to margin recovery, Mondelez offers an appealing setup heading into the back half of the year.
