Is Mondelez a Good Investment?

PHOTO CREDIT: Mondelez

OVERVIEW

Mondelez International Incorporation is a company based in the United States. The company develops, manufactures, and sells food products around the world. Some of the company’s brands include Chips Ahoy, Oreo, Triscut, Ritz, Cadbury, Toblerone, and many others. These products are sold in distribution centers and retail stores. The company was founded in 2000 as a spinoff of Kraft Heinz.

Why You Should?

  1. Mondelez is a great reopening play in an investor’s portfolio. The pandemic caused many restaurants and sporting events to shut down, something that caused a drop in demand for commercial sales. However, as the pandemic comes to an end, the company will see strong growth once again.
  2. Modelez is a safe investment option in an investor’s portfolio due to the essential nature of the products that the company sells. The company will see sales remain stable during tough economic times as people will still consume food products through these downturns. This will benefit the company and its investors.
  3. Mondelez operates many good brands (in fact, the brands that Mondelez operates are some of the most popular in the world). Some of these brands include Oreo (the world’s most popular cookie), Ritz, Chips Ahoy, and many others. This brand portfolio will help the company gain new customers and retain others for longer. This will also benefit investors.
  4. The COVID-19 pandemic has also benefited the company in the financial year of 2020. As the pandemic took hold, the company saw a rise in demand for its products as people stocked up on comfort food products like Oreo and Ritz. This has helped the company see rising growth and has also benefited investors in the company.
  5. The company saw rising revenues and profits of over the past couple of financial years due to the reasons mentioned above. This has helped the company grow across its markets and has also helped the company improve its product offerings. This has also benefited investors in the company. In the financial year of 2020, the company reported revenues of around 26.58 billion and profits of around 3.25 billion. In the financial year of 2019, the company reported lower revenues of around 25.87 billion but higher profits of around 3.93 billion.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. The company faces tough competition in the food industry. Some of these competitors include PepsiCo, Coca-Cola, Kraft Heinz, Hershey’s, General Mills, and many others. This competition might hurt the company and its investors in the future.
  2. The COVID-19 pandemic has also hurt some aspects of the company’s business. From falling demand for commercial products to supply chain issues and shortages of key commodities, the company has also had its fair share of issues caused by the pandemic. This has hurt some aspects of the company’s operational results and has also hurt investors.

MY OPINION

I think that Mondelez is a great long-term investment due to its position as a good reopening play, its position as a safe investment option, a good portfolio of brands, positive impacts from the COVID-19 pandemic, as well as rising revenues and profits. However, tough competition and negative impacts from the pandemic might hurt the company and its investors in the future.

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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