August 8, 2024

Mondelez: A Steady Snacking Giant 🍪

Global snacking juggernaut Mondelez International (NASDAQ: MDLZ) is home to a wide array of recognizable brands, including Oreo, Ritz, CLIF Bar, Chips Ahoy!, Triscuit, Toblerone, and Sour Patch Kids. Since its spinoff from Kraft Heinz in 2012, Mondelez has delivered consistent 10% annualized total returns. While these returns have slightly lagged the S&P 500 index’s 14% yearly increase over those 12 years, the company’s returns have matched the index’s historical annualized return of 10% over the last century.

Perhaps the most compelling reason to own the company is that it can deliver market-matching returns in a less stressful manner. Currently, Mondelez has a five-year beta of just 0.5, indicating it is less volatile than the overall market. Over the very long haul, the company may lag in bull markets, but it should win in bear markets, providing stability and consistent returns for investors. Best yet, Mondelez’s growth story could be far from over.

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