Back to top

Analyst Blog

At a time when most food companies are seeing sluggish sales in Europe due to the difficult macroeconomic environment, Mondelez International, Inc. (MDLZ - Analyst Report) saw improved revenues in the country in the third quarter. Organically, European revenues increased 1.9% as volume/mix gains mainly in chocolates, coffee and biscuits were offset by lower coffee pricing and weakness in gum.

In order to further strengthen its presence in the country, Mondelez announced an investment plan in Europe earlier this week. In keeping with its commitment to invest $240 million in European biscuit manufacturing since 2011, the food company plans to build a $100 million biscuit factory at the Opava site in Czech Republic.

The new plant, expected to create 200 jobs, will make Oreo cookies and belVita breakfast biscuits to keep up with the expected increase in demand.

Other Stocks to Consider

The Zacks Rank #3 (Hold) company, previously known as Kraft Foods, Inc., spun off its North American grocery business into a separate independent company, Kraft Foods Group (KRFT - Analyst Report), in October last year. Ever since, Mondelez has been under pressure and has posted disappointing results.

Earlier this month, Mondelez reported dismal third-quarter 2013 results, managing to meet the Zacks Consensus Estimate for earnings but missing the same for revenues due to weak performance in China. The company also lowered its organic revenue guidance for 2013 as the present headwinds are expected to continue.

Other better-placed stocks in the same industry include Omega Protein Corp and Pinnacle Foods Inc. (PF - Snapshot Report). While Omega Protein carries a Zacks Rank #1 (Strong Buy), Pinnacle holds a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%