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    The Bull Case For Mondelez International (MDLZ) Could Change Following Outlook Cut And Recall News - Learn Why

    Simply Wall St·12/03/2025 05:14:54
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    • In recent days, Mondelez International cut its 2025 outlook amid margin pressure from high cocoa costs and softer volumes, while also issuing a limited voluntary recall of certain RITZ Peanut Butter Cracker Sandwiches due to mislabeling risks for people with peanut allergies.
    • At the same time, the company is leaning into brand-building efforts, including a RITZ Big Game advertising push and the launch of Lotus Biscoff in India, underscoring its focus on long-term growth and geographic expansion despite near-term headwinds.
    • We’ll now examine how Mondelez’s lowered 2025 outlook, especially pressure from elevated cocoa costs, reshapes its pre-existing investment narrative.

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    Mondelez International Investment Narrative Recap

    To hold Mondelez, you generally need to believe in the resilience of its global snacking brands and their pricing power across cycles. The cut to the 2025 outlook and cocoa driven margin pressure directly affects the near term earnings catalyst, while the limited RITZ recall does not appear material to the broader business risk profile at this stage.

    The most relevant recent development here is management’s lowered 2025 guidance, which explicitly ties weaker adjusted EPS to elevated cocoa costs and softer volumes. That same cost pressure already sat at the center of the investment risk case, so this update largely formalizes what was a key concern and keeps input inflation firmly in focus for anyone watching near term profitability.

    Yet investors should also be aware that persistent cocoa driven margin pressure could...

    Read the full narrative on Mondelez International (it's free!)

    Mondelez International's narrative projects $42.7 billion revenue and $4.7 billion earnings by 2028. This requires 4.8% yearly revenue growth and about a $1.1 billion earnings increase from $3.6 billion today.

    Uncover how Mondelez International's forecasts yield a $69.02 fair value, a 23% upside to its current price.

    Exploring Other Perspectives

    MDLZ Community Fair Values as at Dec 2025
    MDLZ Community Fair Values as at Dec 2025

    Four members of the Simply Wall St Community value Mondelez between US$69 and US$114 per share, showing a wide spread of opinions. Set these views against the recent 2025 outlook cut, where higher cocoa prices are already weighing on earnings and could influence how you interpret that range.

    Explore 4 other fair value estimates on Mondelez International - why the stock might be worth just $69.02!

    Build Your Own Mondelez International Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.