Mondelez International's Selective M&A Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy MDLZ?
Source: seekingalpha
- M&A Strategy Shift: Mondelez International (MDLZ) plans to adopt a selective M&A strategy in 2023, with management viewing acquisitions as a tool to support its snacking strategy, although high valuations limit the number of viable targets.
- Increased Market Competition: In recent years, companies have sought acquisitions of trendier, higher-growth brands to rejuvenate sales, leading to heightened competition among potential buyers, which impacts M&A feasibility.
- Clear Target Focus: At the 2026 CAGNY conference, CEO Dirk Van de Put and CFO Luca Zaramella reiterated that targeted growth-accretive acquisitions remain part of MDLZ's capital allocation framework, focusing on core biscuits, chocolate, and baked snacks, particularly in under-indexed geographies.
- Ongoing M&A Activity: Since 2018, MDLZ has executed about ten snacking transactions, including acquisitions of Clif Bar and Tate’s Bake Shop, demonstrating its commitment to expanding in the cakes, pastries, and premium chocolate sectors.
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Analyst Views on MDLZ
Wall Street analysts forecast MDLZ stock price to rise
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 58.400
Low
62.00
Averages
66.82
High
84.00
Current: 58.400
Low
62.00
Averages
66.82
High
84.00
About MDLZ
Mondelez International, Inc. is a snack company. The Company’s core business is making and selling chocolate, biscuits and baked snacks. The Company also has additional businesses in adjacent, locally relevant categories including gum and candy, cheese and grocery and powdered beverages. Its portfolio includes global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. The Company’s segments include Latin America, AMEA, Europe and North America. It sells its products in over 150 countries and has operations in approximately 80 countries, including 147 principal manufacturing and processing facilities across 46 countries. It sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Mondelez International Stock Rises, Positive Investment Outlook
- ETF Performance: The State Street Consumer Staples Select Sector SPDR ETF has risen approximately 13% year-to-date, contrasting with a 4.5% loss in the technology ETF, highlighting the relative strength of consumer staples and attracting investor interest.
- Mondelez Investment Value: Mondelez International, one of only 13 S&P 500 consumer staples stocks yielding over 3%, has seen a 10.6% decline over the past year; however, its stable dividend growth and brand value continue to make it attractive to investors.
- Sales Growth Potential: Mondelez is projected to achieve 4% organic sales growth with operating margins of 18%, exceeding the five-year average of 16.5%, indicating positive progress in innovation investments that may draw in more investors.
- Dividend Appeal: With a dividend yield of 3.32%, Mondelez's impressive historical payout growth and analysts' expectations for continued high-single-digit increases in the coming years further enhance its attractiveness as a long-term investment.
See More
Hidden Dividend Opportunities in Consumer Goods Stocks
- Turning Point Brands Growth Potential: Turning Point Brands (TPB) achieved a 29% sales growth in Q4, despite a slight dip in EPS, with modern oral nicotine product sales surging 266% year-over-year, indicating strong momentum in its transition, and projected gross revenue of $220 million to $240 million in modern oral products by 2026.
- Crown Holdings Dividend Increase: Crown Holdings (CCK) announced a 35% dividend increase, reflecting its record adjusted EBITDA of approximately $2.1 billion in 2025, an 8% increase from 2024, with strong performance in North American and European markets driven by global aluminum can demand, showcasing its resilience in the consumer packaging sector.
- Mondelez Brand Strength: Mondelez (MDLZ) generated $38.5 billion in revenue in 2025, and despite a 44.7% drop in EPS due to rising cocoa prices, its organic revenue still grew by 4.3%, with expectations of 0% to 2% organic sales growth in 2026, highlighting the long-term stability of its brands and strong cash flow.
- Market Reaction and Investment Opportunities: Although Turning Point Brands' stock fell 20% due to short-term fluctuations, its robust cash flow and ongoing dividend growth make it a solid long-term investment, while Crown and Mondelez's strong performances provide reliable dividend yield opportunities for investors.
See More
Analysis of Three High-Potential Dividend Stocks
- Turning Point Brands Growth Potential: Despite a slight dip in EPS, Turning Point Brands reported a 29% sales increase in Q4, exceeding analyst expectations by 9%, with modern oral nicotine product sales surging 266% year-over-year, indicating strong growth potential during its transition.
- Crown Holdings Dividend Increase: Crown Holdings announced a 35% dividend increase, achieving approximately $2.1 billion in adjusted EBITDA and $12.365 billion in net sales for 2025, reflecting strong performance in global beverage can demand and confidence in sustainable growth.
- Mondelez Undervalued: Mondelez generated $38.5 billion in revenue in 2025, and despite a 44.7% drop in EPS due to rising cocoa prices, its organic revenue still grew by 4.3%, showcasing strong growth potential in emerging markets and stable cash flow.
- Dividend Investment Opportunities: All three companies demonstrate robust cash flows and solid financial health, with dividend increases from Turning Point Brands and Crown Holdings reflecting management's confidence in future prospects, making them attractive for long-term investors.
See More
Mondelez International's Selective M&A Strategy
- M&A Strategy Shift: Mondelez International (MDLZ) plans to adopt a selective M&A strategy in 2023, with management viewing acquisitions as a tool to support its snacking strategy, although high valuations limit the number of viable targets.
- Increased Market Competition: In recent years, companies have sought acquisitions of trendier, higher-growth brands to rejuvenate sales, leading to heightened competition among potential buyers, which impacts M&A feasibility.
- Clear Target Focus: At the 2026 CAGNY conference, CEO Dirk Van de Put and CFO Luca Zaramella reiterated that targeted growth-accretive acquisitions remain part of MDLZ's capital allocation framework, focusing on core biscuits, chocolate, and baked snacks, particularly in under-indexed geographies.
- Ongoing M&A Activity: Since 2018, MDLZ has executed about ten snacking transactions, including acquisitions of Clif Bar and Tate’s Bake Shop, demonstrating its commitment to expanding in the cakes, pastries, and premium chocolate sectors.
See More
Cocoa Futures Prices Plummet Significantly
- Price Collapse: Cocoa futures have plummeted nearly 70% from an all-time high of around $12,000 per ton in late 2024 to below $3,000 as of early March, significantly impacting the cost structure for chocolate manufacturers.
- Demand Shift: Elevated prices over the past two years have led consumers to switch to private-label brands or reduce purchases, resulting in a notable decline in chocolate demand, with industry analysts warning that this demand destruction could have long-term implications for market structure.
- Surplus and Tariff Issues: A global cocoa surplus is forecasted for the 2025/26 crop year, but exporters at West African ports are reportedly rejecting some new crop arrivals due to quality concerns, while U.S. tariffs of 21% on Ivory Coast cocoa further compress profit margins for American producers.
- Future Risks: Despite current price declines, farmers and governments face losses that may lead to supply restrictions, risking future shortages, while the market remains vulnerable to climate impacts, increasing the likelihood of supply disruptions.
See More
The Impact of the Iran Conflict on Consumer Staples Companies
- Impact on Supply Chains: The Iran conflict may disrupt global supply chains, leading to logistical challenges for businesses.
- Rising Costs: Increased energy and freight costs are anticipated as a result of the conflict, affecting various industries.
- Consumer Demand Pressure: The situation could weaken consumer demand, particularly impacting U.S. consumer staples companies.
- Economic Implications: Overall, the conflict poses significant economic risks that could ripple through multiple sectors.
See More
Mondelez International Stock Rises, Positive Investment Outlook
- ETF Performance: The State Street Consumer Staples Select Sector SPDR ETF has risen approximately 13% year-to-date, contrasting with a 4.5% loss in the technology ETF, highlighting the relative strength of consumer staples and attracting investor interest.
- Mondelez Investment Value: Mondelez International, one of only 13 S&P 500 consumer staples stocks yielding over 3%, has seen a 10.6% decline over the past year; however, its stable dividend growth and brand value continue to make it attractive to investors.
- Sales Growth Potential: Mondelez is projected to achieve 4% organic sales growth with operating margins of 18%, exceeding the five-year average of 16.5%, indicating positive progress in innovation investments that may draw in more investors.
- Dividend Appeal: With a dividend yield of 3.32%, Mondelez's impressive historical payout growth and analysts' expectations for continued high-single-digit increases in the coming years further enhance its attractiveness as a long-term investment.
See More
Hidden Dividend Opportunities in Consumer Goods Stocks
- Turning Point Brands Growth Potential: Turning Point Brands (TPB) achieved a 29% sales growth in Q4, despite a slight dip in EPS, with modern oral nicotine product sales surging 266% year-over-year, indicating strong momentum in its transition, and projected gross revenue of $220 million to $240 million in modern oral products by 2026.
- Crown Holdings Dividend Increase: Crown Holdings (CCK) announced a 35% dividend increase, reflecting its record adjusted EBITDA of approximately $2.1 billion in 2025, an 8% increase from 2024, with strong performance in North American and European markets driven by global aluminum can demand, showcasing its resilience in the consumer packaging sector.
- Mondelez Brand Strength: Mondelez (MDLZ) generated $38.5 billion in revenue in 2025, and despite a 44.7% drop in EPS due to rising cocoa prices, its organic revenue still grew by 4.3%, with expectations of 0% to 2% organic sales growth in 2026, highlighting the long-term stability of its brands and strong cash flow.
- Market Reaction and Investment Opportunities: Although Turning Point Brands' stock fell 20% due to short-term fluctuations, its robust cash flow and ongoing dividend growth make it a solid long-term investment, while Crown and Mondelez's strong performances provide reliable dividend yield opportunities for investors.
See More
Analysis of Three High-Potential Dividend Stocks
- Turning Point Brands Growth Potential: Despite a slight dip in EPS, Turning Point Brands reported a 29% sales increase in Q4, exceeding analyst expectations by 9%, with modern oral nicotine product sales surging 266% year-over-year, indicating strong growth potential during its transition.
- Crown Holdings Dividend Increase: Crown Holdings announced a 35% dividend increase, achieving approximately $2.1 billion in adjusted EBITDA and $12.365 billion in net sales for 2025, reflecting strong performance in global beverage can demand and confidence in sustainable growth.
- Mondelez Undervalued: Mondelez generated $38.5 billion in revenue in 2025, and despite a 44.7% drop in EPS due to rising cocoa prices, its organic revenue still grew by 4.3%, showcasing strong growth potential in emerging markets and stable cash flow.
- Dividend Investment Opportunities: All three companies demonstrate robust cash flows and solid financial health, with dividend increases from Turning Point Brands and Crown Holdings reflecting management's confidence in future prospects, making them attractive for long-term investors.
See More
Mondelez International's Selective M&A Strategy
- M&A Strategy Shift: Mondelez International (MDLZ) plans to adopt a selective M&A strategy in 2023, with management viewing acquisitions as a tool to support its snacking strategy, although high valuations limit the number of viable targets.
- Increased Market Competition: In recent years, companies have sought acquisitions of trendier, higher-growth brands to rejuvenate sales, leading to heightened competition among potential buyers, which impacts M&A feasibility.
- Clear Target Focus: At the 2026 CAGNY conference, CEO Dirk Van de Put and CFO Luca Zaramella reiterated that targeted growth-accretive acquisitions remain part of MDLZ's capital allocation framework, focusing on core biscuits, chocolate, and baked snacks, particularly in under-indexed geographies.
- Ongoing M&A Activity: Since 2018, MDLZ has executed about ten snacking transactions, including acquisitions of Clif Bar and Tate’s Bake Shop, demonstrating its commitment to expanding in the cakes, pastries, and premium chocolate sectors.
See More
Cocoa Futures Prices Plummet Significantly
- Price Collapse: Cocoa futures have plummeted nearly 70% from an all-time high of around $12,000 per ton in late 2024 to below $3,000 as of early March, significantly impacting the cost structure for chocolate manufacturers.
- Demand Shift: Elevated prices over the past two years have led consumers to switch to private-label brands or reduce purchases, resulting in a notable decline in chocolate demand, with industry analysts warning that this demand destruction could have long-term implications for market structure.
- Surplus and Tariff Issues: A global cocoa surplus is forecasted for the 2025/26 crop year, but exporters at West African ports are reportedly rejecting some new crop arrivals due to quality concerns, while U.S. tariffs of 21% on Ivory Coast cocoa further compress profit margins for American producers.
- Future Risks: Despite current price declines, farmers and governments face losses that may lead to supply restrictions, risking future shortages, while the market remains vulnerable to climate impacts, increasing the likelihood of supply disruptions.
See More
The Impact of the Iran Conflict on Consumer Staples Companies
- Impact on Supply Chains: The Iran conflict may disrupt global supply chains, leading to logistical challenges for businesses.
- Rising Costs: Increased energy and freight costs are anticipated as a result of the conflict, affecting various industries.
- Consumer Demand Pressure: The situation could weaken consumer demand, particularly impacting U.S. consumer staples companies.
- Economic Implications: Overall, the conflict poses significant economic risks that could ripple through multiple sectors.
See More
