Back to top

Analyst Blog

Zacks Equity Research

Kraft Foods Shareholders OK Mondelez

 ZacksTrade Now

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.

Kraft Foods, Inc. , which is in the process of splitting into two independent companies, a global snacks company and a North American grocery company, recently announced that its shareholders have approved the name Mondelez International, Inc. for the global snacks business. More than 90% of the shareholders who cast their votes favored the new name. Mondelez literally means a delicious world.

Following the split, global snacks will consist of the current Kraft Foods Europe and Developing Markets units as well as the North American snacks and confectionery businesses. The North American grocery business would consist of the current US Beverages, Cheese, Convenient Meals and Grocery segments and the non-snack categories in Canada and Food Service. The spin-off is expected to be completed before the end of this year.

The North American grocery business, which includes popular brands like Oscar Mayer meat and Kraft cheese, will be an independent public company called Kraft Foods Group, Inc. and will trade under the ticker symbol KRFT. The snacks company, Mondelez will market popular brands like Cadbury, Jacobs, LU, Milka, Nabisco, Oreo, Tang and Trident and will trade under the ticker symbol MDLZ.

Our Recommendation

We currently have a Neutral recommendation on Kraft Foods. The stock carries a Zacks #3 Rank (a short-term ‘Hold’ rating).

Overall, we are encouraged by Kraft’s strategy of continued cost management, price increases, expansion into emerging markets and continued strong momentum from its designated Power Brands. Further, the spin-off is expected to allow Kraft to focus on its distinct strategic priorities and allocate resources optimally. However, we remain concerned about rising input costs and vulnerability to currency translations.

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
BITAUTO HOLD BITA 33.54 +9.00%
INTERNATIONA ICAGY 33.09 +4.72%
NOAH HOLDING NOAH 13.91 +4.67%
CHINA DISTAN DL 14.79 +4.30%
VALEO SA SPO VLEEY 67.91 +3.95%