Mondelez posted 2.1% organic sales growth in the third quarter and a 380-basis-point jump in adjusted gross margin to 34.2%. Shares shot up around 6% in after-hours trading on Oct. 29.
Mondelez's strategic decision to empower in-market leaders and fuel investments in its local jewels (which has been starved in favor of investing in its global brands) should drive outsize growth in emerging markets.
Bears
North America has been in the doldrums (down 1% on an organic basis in fiscal 2025), which we attribute to a value-seeking consumer and lower retail inventory levels (though this is not a Mondelez-specific predicament).
Mondelez has operated independently since its split from the former Kraft Foods North American grocery business in October 2012. Since that time, the firm has been a leading player in the global snack enclave with a presence in the biscuit (48% of sales as of the end of fiscal 2025), chocolate (33%), gum/candy (10%), beverage (3%), and cheese and grocery (6%) aisles. Mondelez's portfolio includes well-known brands like Oreo, Chips Ahoy, Halls, and Cadbury. The firm garners around one-third of its revenue from developing markets, around 40% from Europe, and more than one-fourth from North America.