Mondelez is trading above both the 50-day and 200-day simple moving averages, with the 50-day line rising and the 200-day line drifting lower. The gap between the averages has narrowed to about four-tenths of a point, and continued strength supported by recent gains could bring a golden cross soon. Cocoa costs have been a major margin drag, but moderation in cocoa prices and signs of a strong crop are providing relief. Revenue growth is broad-based across AMEA, Latin America, and Europe, while North America is modest. Emerging markets show improving elasticity as pricing decelerates. Q1 results beat EPS and revenue rose year over year, with guidance reaffirmed and free cash flow expected around $3 billion.
"As of May 21, 2026, Mondelez closed at $61.50, well above both key trendlines. The 50-day SMA stands at 58.57 and is climbing, having moved up from 57.97 on May 11. The 200-day SMA stands at 58.15 and is drifting lower, down from 60.12 in late February. With the short-term line rising and the long-term line declining, the spread has narrowed to roughly four-tenths of a point. A continued move higher, supported by the stock's 9.6% one-month gain and 14.3% year-to-date advance, could trigger the cross very soon."
"Cocoa has been the single largest drag on margins. FY2025 operating income fell 44.08%, and net income fell 46.84%, with Q3 2025 marking peak costs of the year. CEO Dirk Van de Put told investors he was "encouraged by recent moderation in cocoa prices, as well as promising signs for a strong cocoa crop this fall." Sustained relief is the most powerful lever for re-rating the stock."
"In Q1 2026, the engine was working. AMEA revenue grew 14.3%, Latin America 12.1%, and Europe 9.0%, while North America inched up 0.5%. Emerging Markets organic growth of 6.3% came with positive volume/mix of +0.5pp, an important signal that elasticity is improving as pricing decelerates to 3.5pp from 9.9pp in Q4."
"The first quarter delivered EPS of $0.67, versus $0.6079 expected, a 10.22% beat. Revenue of $10.08 billion was up 8.24% year over year. Management reaffirmed 2026 guidance for flat to 2% organic revenue growth, flat to 5% adjusted EPS growth, and roughly $3 billion in free cash flow, with an expected 2.0% FX tailwind."
Read at 24/7 Wall St.
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