Street View: Cocoa relief offers Mondelez hope, but path still murky

Mondelez International

29/10/2025 10:41

** Mondelez International MDLZ.O cut its annual profit forecast on Tuesday, as value-conscious consumers scaled back on purchases of its pricey chocolates and snacks in North America and Europe, and higher cost of cocoa added pressure

** Shares down 5.3% at $57.04 premarket

CHOCOLATE PRICING TESTING CONSUMER SWEET SPOTS

** Jefferies ("buy," PT: $70) says  improving cocoa fundamentals could offer margin relief, supporting reinvestment and positioning MDLZ for recovery and long-term growth

** D.A.Davidson ("neutral," PT: $65) says "we see a path to closer to fully restored earnings power in FY27, assuming cocoa cooperates"
** However, brokerage adds that a lot can happen between now and then, and a rapidly evolving food landscape demands some more clarity

** RBC Capital Markets ("outperform," PT: $67) says MDLZ's 2026 earnings goal looks achievable, despite concerns around cocoa prices and the broader economy, thanks to the corrective actions outlined by management

** Piper Sandler ("neutral," PT: $63) says that while the cocoa outlook is improving, it appears unlikely at the moment to drive significant earnings per share growth upside

 (Reporting by Joel Jose in Bengaluru)

 ((joeljose@thomsonreuters.com))