Mondelez Rides on a Sweet Sales Trajectory Even as Inflationary Angst Persists; Shares Fairly Valued

Mondelez is living up to its mandate—to be a growth engine in the mature packaged food realm—with organic sales that shot up 12.1% in the third quarter, due to 11% higher prices and a 1% benefit from increased volumes and favorable mix. Beyond its portfolio in the attractive snacking enclave with outsize exposure to faster-growing emerging markets, we think this evidences Mondelez has crafted the right recipe (extending its distribution, investing in its brands, empowering local leaders, and innovating agilely) to deliver stellar growth metrics even amid a challenging macro and competitive backdrop.