Mondelez Delivers a Solid Q3: Does the Guidance Cut Signal Trouble?

Mondelez International, Inc. MDLZ turned in a solid third quarter of 2025, delivering better-than-expected revenues and earnings. However, the company struck a more cautious tone for the near term. Management explained that the pullback in guidance is not about weakening fundamentals but about a few very specific headwinds that surfaced during the quarter.MDLZ now expects 2025 organic net revenue growth of 4% or higher compared with the earlier-mentioned 5%. Adjusted EPS is now anticipated to fall 15% on a constant-currency basis, steeper than the previously estimated decline of 10%.The company faced issues from U.S. retailers who reduced inventories more sharply than anticipated. This created a temporary drag on shipments and made near-term comparisons choppier than usual. Management clarified that this is mainly a timing issue, not a sign that consumers are pulling back. Europe presented another challenge, as unusually hot weather and higher-than-expected price sensitivity weighed on chocolate volumes.Tariff uncertainty also contributed to the more conservative guidance. Management noted that tariff actions have added costs and dampened consumer sentiment in certain markets, creating additional caution as the company plans the rest of the year.Nevertheless, Mondelez is leaning into targeted pricing actions, stronger activation with retail partners, and a more focused push into value and club channels. The company also emphasized that it remains well covered on cocoa, offering some flexibility as commodity markets evolve.Overall, the third quarter showed strong execution, but the trimmed guidance reflects near-term pressures from destocking, soft European demand and tariff noise. Management’s cautious stance for 2025 is a realistic response to current conditions rather than a shift in the company’s longer-term direction.MDLZ’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #4 (Sell) company have tumbled 6.6% over the past three months compared with the industry’s decline of 7.5%. Mondelez trailed the broader Consumer Staples sector’s drop of 4.3% and the S&P 500’s increase of 6.3% in the same time frame.Image Source: Zacks Investment ResearchMDLZ’s Valuation PictureMondelez currently trades at a forward 12-month P/E ratio of 18.18, which is above the industry average of 14.72. Given the near-term pressures, this elevated multiple appears difficult to justify in the near term. A Value Score of D underscores the concerns.Image Source: Zacks Investment ResearchTop-Ranked Food StocksUnited Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 2.5% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.Lamb Weston Holdings, Inc. LW engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average. The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently carries a Zacks Rank of 2 (Buy). CHEF delivered a trailing four-quarter earnings surprise of 14.7%, on average.The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 8.1% and 29.3%, respectively, from the prior-year levels.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report Lamb Weston (LW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks