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Mondelez International's Chocolate Growth: Can the Momentum Continue?
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Key Takeaways
MDLZ posted 5.5% organic net revenue growth in chocolate in Q1, led by pricing.
MDLZ saw volume/mix fall 2.1% as cocoa-driven pricing hit elasticity, plus downsizing actions.
MDLZ saw Europe trends improve with stronger Easter execution; some premium travel retail products sold out.
Mondelez International, Inc. (MDLZ - Free Report) is continuing to see strong momentum in its chocolate business despite elevated cocoa costs and ongoing pricing pressure across global markets. The company’s first-quarter 2026 results showed that chocolate remained one of its stronger-performing categories, though volume recovery is still evolving.
Chocolate organic net revenues increased 5.5% in the quarter, supported by growth in both Emerging and Developed Markets. Pricing remained the primary growth driver, while volume and mix declined 2.1%. The decrease mainly reflected elasticity pressures in parts of Europe tied to cocoa-related pricing, revenue growth management actions and product downsizing initiatives.
Europe remains a critical region for Mondelez’s chocolate business. The region’s overall revenues declined 0.6% in the quarter due to softer volumes, but trends improved sequentially through the period. Europe’s chocolate returned to slight volume share growth, supported by stronger Easter execution and improving retail trends.
Image Source: Zacks Investment Research
The company also continued benefiting from strong performance across major chocolate brands, including Cadbury Dairy Milk, Toblerone, Lacta and Hu. Innovation added another layer of support. New launches such as Cadbury Biscoff Egg and Toblerone Very Limited Editions generated solid early demand, with several premium travel retail products selling out during the quarter.
Outside Europe, chocolate demand remained healthy across several international markets. Australia and New Zealand posted robust Easter-related chocolate growth, while Emerging Markets benefited from investments in distribution, innovation and brand expansion. Overall, Mondelez’s first-quarter performance showed that its chocolate business continues to hold up well in a challenging cost environment, supported by brand strength, innovation and resilient seasonal demand.
Shares of this Zacks Rank #3 (Hold) company have risen 8.5% over the past six months compared with the industry’s decline of 17.1%.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Darling Ingredients Inc. (DAR - Free Report) transforms food and animal byproducts into sustainable ingredients for essential uses. DAR carries a Zacks Rank #2 (Buy).
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 10.3% and 567.7%, respectively, from the year-ago reported figures. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
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Mondelez International's Chocolate Growth: Can the Momentum Continue?
Key Takeaways
Mondelez International, Inc. (MDLZ - Free Report) is continuing to see strong momentum in its chocolate business despite elevated cocoa costs and ongoing pricing pressure across global markets. The company’s first-quarter 2026 results showed that chocolate remained one of its stronger-performing categories, though volume recovery is still evolving.
Chocolate organic net revenues increased 5.5% in the quarter, supported by growth in both Emerging and Developed Markets. Pricing remained the primary growth driver, while volume and mix declined 2.1%. The decrease mainly reflected elasticity pressures in parts of Europe tied to cocoa-related pricing, revenue growth management actions and product downsizing initiatives.
Europe remains a critical region for Mondelez’s chocolate business. The region’s overall revenues declined 0.6% in the quarter due to softer volumes, but trends improved sequentially through the period. Europe’s chocolate returned to slight volume share growth, supported by stronger Easter execution and improving retail trends.
Image Source: Zacks Investment Research
The company also continued benefiting from strong performance across major chocolate brands, including Cadbury Dairy Milk, Toblerone, Lacta and Hu. Innovation added another layer of support. New launches such as Cadbury Biscoff Egg and Toblerone Very Limited Editions generated solid early demand, with several premium travel retail products selling out during the quarter.
Outside Europe, chocolate demand remained healthy across several international markets. Australia and New Zealand posted robust Easter-related chocolate growth, while Emerging Markets benefited from investments in distribution, innovation and brand expansion. Overall, Mondelez’s first-quarter performance showed that its chocolate business continues to hold up well in a challenging cost environment, supported by brand strength, innovation and resilient seasonal demand.
Shares of this Zacks Rank #3 (Hold) company have risen 8.5% over the past six months compared with the industry’s decline of 17.1%.
Stocks to Consider
The Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Darling Ingredients Inc. (DAR - Free Report) transforms food and animal byproducts into sustainable ingredients for essential uses. DAR carries a Zacks Rank #2 (Buy).
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 10.3% and 567.7%, respectively, from the year-ago reported figures. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.