JPMorgan Recommends Buying Mondelēz International (MDLZ) Due to Strong Volume and Sales Growth

JPMorgan has resumed coverage of Mondelez International with an Overweight rating and $75 price target, citing the company's robust global footprint, snacking category focus, and successful mergers and acquisitions. The investment bank expects Mondelez to bounce back to accelerated growth as inflation eases.

September 02, 2025

JPMorgan has resumed coverage of Mondelez International with an Overweight rating and a $75 price target, citing the company's robust global footprint, focus on the snacking category, and successful mergers and acquisitions. The investment bank expects Mondelez to bounce back to accelerated growth as inflation eases.

Mondelez International, Inc. (NASDAQ:MDLZ) is a global company that produces and sells snacks, confectionery, and beverages, operating in over 150 countries with well-known brands such as Oreo, Ritz, Cadbury, and Toblerone. The company leads the $250 billion global snacking sector with a 55% market share and a 15.61% market share in food processing [1].

The investment bank's positive stance is also in response to Mondelez's strong track record in conducting successful mergers and acquisitions, which have allowed the company to scale its business and manufacturing platforms. JPMorgan expects the company to bounce back to accelerated growth as inflation eases, based on the decisive pricing actions.

Mondelez reported a 7.7% revenue growth and an 8.9% EPS increase in Q2 2025, with $2.9 billion returned to shareholders via dividends and buybacks. The company has returned $2.9 billion to shareholders in the first half of 2025 through dividends and buybacks, including a 6% dividend hike [2].

The company's strategic investments in AI supply chains, sustainable packaging, and premium brands like Clif Bar align with health-conscious consumer trends. Mondelez's portfolio optimization efforts also reflect a forward-looking approach, with acquisitions like Tate's Bake Shop and Clif Bar expanding its footprint in premium, health-focused categories [3].

Mondelez's 2024 State of Snacking report revealed a pivotal shift in consumer behavior: 91% of global consumers snack daily, with 69% prioritizing portion control and 71% viewing snacking as a social or emotional activity. The company has responded by reorienting its portfolio toward "Mindful Portion Snacks," which now account for 84% of revenue [4].

Emerging markets further bolster this strategy. Mondelez's expansion into Asia and Africa, where snacking is increasingly tied to urbanization and rising disposable incomes, has driven double-digit revenue growth in these regions [5].

Environmental, social, and governance (ESG) initiatives are central to Mondelez's value proposition. Its "Snacking Made Right" strategy includes commitments to net-zero carbon emissions by 2050 and 100% recyclable packaging by 2030 [6]. The Cocoa Life Program, which supports 250,000 farmers, not only ensures ethical sourcing but also stabilizes supply chains for critical ingredients like cocoa. These efforts resonate with a consumer base increasingly willing to pay a premium for sustainability, as evidenced by the 12% sales growth in organic and low-sodium snacks [7].

Risks persist, including commodity price volatility and geopolitical tensions, but Mondelez's pricing discipline and focus on high-margin, premium products provide a buffer. Its digital transformation, including IoT-enabled supply chains, enhances resilience against disruptions.

Mondelez International's strategic pillars—innovation, portfolio diversification, and ESG integration—position it as a paragon of long-term value creation in the global snacking sector. By aligning with consumer trends, leveraging technology, and prioritizing sustainability, the company is not only defending its market leadership but redefining it. For investors, Mondelez offers a compelling blend of resilience, growth, and ethical stewardship in an industry poised for sustained expansion.

References:
[1] https://www.ainvest.com/news/mondelez-international-engineering-long-term-global-snacking-sector-strategic-innovation-portfolio-optimization-2509/
[2] https://ir.mondelezinternational.com/news-releases/news-release-details/mondelez-international-reports-q2-2025-results
[3] https://www.fooddive.com/news/behind-the-evolution-of-mondelezs-snackfutures-venture-capital-arm/750111/
[4] https://www.bakeryandsnacks.com/Article/2025/02/18/snacking-as-self-care-mondelez-report-taps-consumer-trends/
[5] https://monexa.ai/blog/mondelez-mdlz-snacking-trends-esg-financial-outloo-MDLZ-2025-06-18
[6] https://ir.mondelezinternational.com/news-releases/news-release-details/mondelez-international-continues-progress-against-snacking-made
[7] https://snacintl.org/2025-state-of-the-industry-report/