Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The maker of Oreo cookies and Cadbury chocolates, Mondelez International, Inc. (MDLZ - Analyst Report) recently announced that it is offering notes worth $1 billion. The company offered 6.500% Notes due 2040, 7.000% Notes due 2037, 6.875% Notes due 2038, 6.875% Notes due 2039 and 6.500% Notes due 2031. The offer is valid till Feb 6, 2014, unless further extended by the company.

Mondelez has been in news since Dec 2013 when it increased its share buyback program by a massive $1.7 billion. The total share repurchase authorization is now worth $7.7 billion which can be repurchased by 2016.

The buybacks will be funded by the net proceeds of the arbitration award that Starbucks Corporation (SBUX - Analyst Report) will pay under a dispute settlement announced in Nov 2013. Starbucks will pay $2.76 billion to Kraft Foods Inc. against the settlement of the year-long distribution agreement dispute.

Mondelez will receive the indemnity as Kraft Foods was split into two separate companies — Mondelez and Kraft Foods Group, Inc. (KRFT - Analyst Report) — in Oct 2012.  While Mondelez took old Kraft’s food and snacks business, Kraft Foods Group got the North American grocery business.
 
Mondelez carries a Zacks Rank #2 (Buy). However, ever since the split from Kraft, Mondelez has been under pressure and posted disappointing results.

In Nov 2013, 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.

Another stock worth considering in the food/beverage industry is ConAgra Foods, Inc. (CAG - Analyst Report), carrying a Zacks Rank #2.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

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 Zacks.com. 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
VERTEX ENERG VTNR 8.25 +10.59%
MODINE MANUF MOD 17.12 +8.77%
CLAYTON WILL CWEI 140.03 +7.27%
E*TRADE FINA ETFC 22.67 +5.44%
KNIGHTSBRIDG VLCCF 13.22 +5.42%